Do mtg companies always require last 2 years tax returns or are W-2's ok?

[Nettieinva]

I know it's hard to say for standard but what makes them want tax returns vs w-2's?

[Mike_B03]

If you get any sort of self employment income or 1099 income, then they will want 2 years of taxes. If you are a regular W2 employee, then I think normally they just ask for 2 months of W2s and 1 year of taxes.

[Nettieinva]

Thanks Mike. I'm a regular W-2 employee with 22 yrs the same company. I just want to try and have everything together.

[namvet]

IME you will be asked to provide a full months pay check stubs and the most recent W-2.  Since you are not self employed or commissioned there should be no request for your 1040 tax returns.  Some lenders may ask for the last 2 years W-2 forms. 

[foofighter74]

Both my wife and I are W-2 employed...and all three lenders we looked into still wanted the last two years of tax returns.  They ask for tax returns to see what expenses and deductions you claim...they're looking to make sure you actually DID file tax returns, if you owed taxes did you pay them, etc.  It's not just an income verification step.

I would guess, based on what i've seen and heard, most lenders will want your tax returns regardless of  your employment status.

[MainMan]

I also had to provide tax returns and w2s. I am not self employed been with same company 8 years.

[ysabelle32]

I was working in the UK for the past 10 yrs.just came back here in Sept 2012. Got pre-approved last week for a $168K mortgage ( w/20% down) 3.5% apr.they just wanted to see my 2012 W-2 and last months pay stub showing year to date earnings.was pretty surprised but that's all they needed.my mid-score was 706.

[Nettieinva]

If buying new construction when does all the documentation come into play? At the beginning of the process or towards the end for final closing?

[Mike_B03]

In my experience, at the beginning of the process for a new build. When we applied for a new build, we thought our income using 2010 and 2011 wouldn't be good enough to meet their DTI and it was basically at the point that the builder was going to just put things "on hold" until our 2012 taxes were ready. Our DTI ended up being ok and they moved forward but they did need everything up front otherwise they were willing to wait until we had everything we needed but also wouldnt start building.