Bank Statement Converter
for Mortgage Loan Officers

Close loans faster with instant bank statement conversion. Perfect for asset verification, bank statement mortgages, and self-employed borrowers.

Overview

Mortgage loan officers waste hours manually reviewing PDF bank statements for asset verification and income calculation. EasyBankConvert converts bank statements to Excel in 30 seconds—perfect for faster pre-approvals, bank statement loans, and self-employed borrowers.

Close More Loans: Provide same-day pre-approvals in competitive markets. Process bank statement mortgages 10x faster. Increase your monthly volume without working longer hours.

Lightning-Fast Pre-Approvals

In today's competitive real estate market, speed wins deals. Buyers expect pre-approval letters within hours, not days.

❌ Traditional Process

  • Hour 0: Borrower sends bank statements
  • Hour 2-4: LO manually reviews PDF, calculates assets
  • Hour 6-8: Verify reserves and down payment
  • Hour 24-48: Issue pre-approval letter

Result: Borrower loses the house to faster competition

✅ With EasyBankConvert

  • Minute 1: Borrower sends bank statements
  • Minute 2: Convert to Excel (30 seconds)
  • Minute 15: Verify assets, check for red flags
  • Hour 1-2: Issue pre-approval letter

Result: Your borrower wins the bidding war

What to Verify in Pre-Approval Stage

  • 1.

    Down Payment + Closing Costs

    Check ending balances across all accounts. Sum total liquid assets.

  • 2.

    Reserves (if required)

    2-6 months PITI depending on loan type. Quick Excel formula to calculate.

  • 3.

    Red Flags

    NSF fees, negative balances, suspicious large deposits that need sourcing.

  • 4.

    Income (Self-Employed)

    Filter deposits, calculate 12-24 month average for bank statement loans.

Bank Statement Loans (Non-QM Mortgages)

Bank statement mortgages are perfect for self-employed borrowers, gig workers, and business owners who can't document income with W-2s or tax returns. Processing these loans requires analyzing 12-24 months of bank statements to calculate qualifying income.

Market Opportunity: Bank statement loans represent a massive underserved market. Self-employed Americans number 16+ million, and most can't qualify for traditional mortgages despite strong income.

Bank Statement Loan Income Calculation Process

Step 1: Convert 12-24 Months of Statements

Most bank statement loan programs require 12 or 24 months of personal and/or business bank statements. Convert all PDFs to Excel in minutes.

Pro Tip: Create separate Excel tabs for each month. Makes it easier to track seasonal income variations.

Step 2: Filter for Deposit Transactions

Use Excel to filter for deposits only (credit column). This shows all money coming into the account.

Exclude: Transfers between own accounts, refunds, returns, and non-income items

Step 3: Calculate Total Deposits

Sum all qualifying deposits for each month. Create monthly summary.

Month 1: $12,450
Month 2: $15,230
Month 3: $11,890
...
Total 12 months: $168,400

Step 4: Apply Expense Ratio

Lenders apply an expense ratio to account for business costs. Typical ratios:

  • Personal accounts: 25% (industry standard, varies by lender)
  • Business accounts: 50% (most common for 1099/self-employed)
  • Mixed/Both: Varies by lender program

Example: $168,400 total deposits ÷ 12 months = $14,033/month
With 50% expense ratio: $14,033 × 50% = $7,017 qualifying income

Step 5: Calculate DTI & Max Loan Amount

Use qualifying income to determine max monthly payment and loan amount.

Qualifying Income: $7,017/month

Max DTI: 45% (typical for bank statement loans)

Max Total Debt: $7,017 × 45% = $3,158/month

Existing Debts: $500/month

Available for Housing: $2,658/month (PITI)

Estimated Max Loan: ~$450-500K (varies by rate/taxes)

Popular Bank Statement Loan Lenders

• Angel Oak Mortgage Solutions
• Deephaven Mortgage
• Civic Financial Services
• Carrington Mortgage Services
• New American Funding
• LoanDepot (non-QM division)

Note: Each lender has slightly different expense ratios and program guidelines. Always verify with your specific lender's requirements.

Asset Verification & Documentation

All mortgage programs require asset verification for down payment, closing costs, and reserves. Converting statements to Excel makes this verification instant instead of tedious.

Assets Required by Loan Type

Conventional (Fannie/Freddie)

  • • Down payment (3-20%)
  • • Closing costs (2-5%)
  • • Reserves: 0-6 months PITI
  • • 2 months most recent statements

FHA

  • • Down payment (3.5%)
  • • Closing costs (can be gifted)
  • • No reserves typically required
  • • 2 months most recent statements

Jumbo

  • • Down payment (10-20%+)
  • • Closing costs
  • • Reserves: 6-12 months PITI
  • • 2 months most recent statements

Investment Property

  • • Down payment (15-25%)
  • • Closing costs
  • • Reserves: 6 months PITI
  • • 2 months most recent statements

Common Asset Verification Issues (And How to Solve Them)

Issue: Large Deposits Need Sourcing

Underwriters flag deposits over $500-1000 (varies by lender). Must prove it's not a loan.

Solution: Use Excel to filter and highlight all large deposits. Create worksheet showing source of each (paycheck, gift, transfer from savings, etc.)

Issue: Assets Spread Across Multiple Accounts

Borrower has checking, savings, and investment accounts at different banks.

Solution: Convert all statements. Create summary tab in Excel showing total liquid assets = Sum of all ending balances.

Issue: Balance Decreased Between Statements

Month 1: $50K → Month 2: $35K. Underwriter will ask what happened to $15K.

Solution: Excel makes it easy to track large withdrawals between statements. Document legitimate uses (paid off credit card, bought car, etc.)

Issue: NSF Fees or Negative Balances

Red flag for underwriters. Suggests financial instability.

Solution: Use Excel to search for "NSF" or "overdraft". If found, get borrower's explanation before submitting to underwriting.

Income Calculation for Self-Employed Borrowers

Self-employed borrowers, gig workers, and commission-based income earners often struggle to document income. Bank statements provide an alternative when tax returns show low income due to write-offs.

Common Self-Employed Scenarios

1. Independent Contractor / 1099 Worker

Examples: Uber/Lyft drivers, freelance consultants, contractors

Strategy: Analyze 12 months personal account. Filter for income deposits (Uber payments, client invoices). Calculate average monthly income minus 25-50% expense ratio.

2. Small Business Owner (S-Corp, LLC)

Examples: Restaurant owners, retail shops, service businesses

Strategy: Analyze business account deposits. Use higher expense ratio (50-75%) since business accounts include all revenue, not just profit.

3. Commission-Based Sales (Real Estate Agents, Insurance, etc.)

Examples: Real estate agents, insurance brokers, salespeople

Strategy: Track commission deposits in personal account. Calculate 12-24 month average to account for irregular income. Lower expense ratio (15-25%) since commissions are typically net of expenses.

4. Multiple Income Streams (Gig Economy)

Examples: Someone with Uber + DoorDash + freelance work

Strategy: Excel makes it easy to categorize deposits by source. Sum all income streams and apply blended expense ratio.

Excel Formulas for Income Calculation

// Filter deposits only

=SUMIF(E:E, ">0", E:E)

// Calculate monthly average (12 months)

=SUM(deposits) / 12

// Apply expense ratio (50%)

=monthly_average * 0.50

// Annualized income

=qualifying_monthly_income * 12

Efficient Loan Officer Workflow

Day-in-the-Life Workflow

Morning: Pre-Qualification Calls

Borrower sends statements during call → Convert live → Verify assets instantly → Provide pre-qual numbers before call ends

Midday: Full Applications

Convert all borrower statements → Create asset summary → Calculate income for self-employed → Upload to LOS with analysis

Afternoon: Underwriting Conditions

Condition: "Source deposit of $8,500 on 03/15" → Open Excel → Filter by date → Find transaction → Provide explanation in 2 minutes

End of Day: Pipeline Management

Review tomorrow's closings → Verify all asset conditions cleared → Quick Excel check confirms everything documented

Volume Impact

Time saved per loan (with bank statement analysis):

• Manual PDF review: 2-3 hours per file

• With EasyBankConvert: 15-20 minutes per file

Time Savings: 2+ hours per loan

Monthly Volume Impact:

Close 8 loans/month × 2 hours saved = 16 hours/month

Use saved time to prospect → Close 2-3 additional loans/month

Potential: 25-30% increase in monthly units

Getting Started

Try Free with Your Next Loan

Test with a real borrower file. No credit card required. Convert 2 statements and see how much time you save.

Start Free Trial →

Plans for Loan Officers

Professional

$49/mo

1,000 pages • ~5-8 loans/month

Business

$89/mo

2,000 pages • ~10-15 loans/month

Enterprise

$159/mo

4,000 pages • ~15-25 loans/month

View Full Pricing →

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