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Gross Income Calculation...W2, Paycheck, or Both?

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twoaklawn
Valued Member

Gross Income Calculation...W2, Paycheck, or Both?

I see where lenders usually require two paycheck stubs and also two years W-2 forms.  As far as DTI calculations are concerned, are the paycheck stubs solely used for that?  Are the W-2 forms required to verify income stability?  I've been with the same job for 11 years so that is not a problem, and luckily I've had a couple of promotions over the last two years that have bumped up my income 20% over that time period.  My DTI back end ratio is the weakest part of my situation, so the gross income is an important part of that for me. 
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twoaklawn
Valued Member

Re: Gross Income Calculation...W2, Paycheck, or Both?

Thank you for clarifying deemac.  I do not receive overtime or bonuses, so I should be good.  thanks!
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Anonymous
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Re: Gross Income Calculation...W2, Paycheck, or Both?

They'll use your current salary base, but average any overtime or bonuses over the two year period off the w2's.
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twoaklawn
Valued Member

Re: Gross Income Calculation...W2, Paycheck, or Both?

Thank you for clarifying deemac.  I do not receive overtime or bonuses, so I should be good.  thanks!
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