topic Re: First time home buyer - Was 1099, Now W-2 in Mortgage Loans

First time home buyer - Was 1099, Now W-2

kisscharlie — Tue, 02 Oct 2012 20:48:11 GMT

I'm looking to buy a new home in the next few months. I've been previously working as a 1099 employee for a company for over 2 years. I've now transitioned to a W-2 employee (72k/yr salary). Along with my wife's 36k/yr salary, what will I expect during the application process, especially regarding income?

Re: First time home buyer - Was 1099, Now W-2

pstx — Thu, 04 Oct 2012 09:06:23 GMT

I think w2 is perceived as more stable, but it would help if you have 2-3 months worth of w2 paystubs to show them.

My experience is anecdotal, others may have different thoughts (esp. mortgage brokers), but I've found that some underwriters have zero ability to look at a situation that is anything out of the ordinary, and that includes changes in type of income like 1099.

Are you at the same company / industry? that would help.

Re: First time home buyer - Was 1099, Now W-2

Shogun — Thu, 04 Oct 2012 11:00:23 GMT

+1 How long have you been W2 now? You are still with the same company? I believe you should be alright, might have to answer a few questions in manual underwriting.

Re: First time home buyer - Was 1099, Now W-2

kisscharlie — Tue, 09 Oct 2012 18:46:03 GMT

Shogun, been with the company for over 2.5 years and started W2 as of October. Iam assuming I will need a couple months of paystubs as proof. Will getting a letter from employer help the underwriting process to show stability?