How a bank-statement review works
A lender may review eligible deposits in personal or business statements to evaluate income. Gross deposits are not automatically qualifying income. Transfers, business expenses, ownership, business history and the source of funds can affect the calculation.
Statement periods and documentation vary by program. A CPA expense-ratio letter may be part of the review, but whether it is accepted and how it is used depends on the actual lender's requirements and underwriting decision.
Compare before choosing
Self-employed borrowers can also qualify for conventional financing when the documented income and other requirements fit. Compare the full loan costs, documentation, property eligibility and available structures instead of assuming alternative documentation is always preferable.
Information to discuss
Be ready to describe the business, ownership, length of self-employment, types of bank accounts, purchase or refinance goal, and property use. Provide statements and financial records only through an approved secure channel.
Does every deposit count?
No. The lender reviews eligible deposits and the applicable income calculation.