When applying for a Bank Statement Loan, it’s important to understand that Non-QM lenders require a Business Description as part of the underwriting process. Whether submitting for pre-qualification or full underwriting, lenders will request a detailed summary of your business.
Some lenders refer to this as a Business Narrative or Business Summary. Below are the key components typically required by lenders in 2024.
Bank Statement Loan – Business Profile & Ownership Details
- Owner Name(s):
- Business Address(es):
- Property Type: (Office, Home-Based, Warehouse, etc.)
- Number of Employees:
- Full-Time:
- Part-Time:
- Contractors:
- Percentage of Ownership:
- Years in Business:
Business Operations & Revenue Model
- Type of Business: (Service-Based, Product-Based, Retail, etc.
- Service-Based Business: If you provide a service, describe the nature of your services.
- Manufacturing Business: If you produce goods, explain the manufacturing process.
- Retail or Resale Business: If you buy and resell products, specify the sourcing and sales process.
- Banking Details: Do you use multiple bank accounts for business income? If so, explain how funds are managed.
Business Income & Loan Structuring
Providing a clear and concise business description helps your loan officer structure your loan application efficiently. Accurate documentation improves approval chances, reduces underwriting conditions, and speeds up the funding process.
Last Updated on 1 month ago by Broker Mortgages