Income Verification?

[MBOhio2]

How will a mortgage lender verify my income? I make an annual salary plus bonuses. Will they look at last year's W-2? My current pay stubs? A combination of the two? Something else?

Thanks!

[Anonymous]

Most loan programs take a 2 year average of bonuses, commissions, overtime pay, etc. They will take your current salary and add to it the 2 year average of other income, most likely.

They will also look at two years tax returns to see if you have any unreimbursed job expenses.

[MBOhio2]

Okay, so to make things more complicated, I have only been bonus eligible for the past 1.5 years. Therefore, last year's W-2 (2010) will reflect bonuses (they're broken up into a few different ddisbursements throughout the year), but 2009 would not. Also, a lender would be able to see that I have already received some bonus in 2011 as well. So how do you think they would look at that?

[Anonymous]

Most would take the bonus income you have received in 2010 and YTD 2011 and average that amount over 24 months.

[MBOhio2]

Perfect, thank you. I'm just trying to get a sense of what bonus income they would consider.