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Last two years tax returns...and income this year

Valued Member

Last two years tax returns...and income this year

When the mortgage lender asks for the previous 2 years tax returns are they using that income for the basis of what amount of loan you qualify for? The reason I ask is because I'm wondering what happens in the situation where someone made the same amount for last 2 years but this year their income is 10,000 more annually? Do they use your current income?


Starting Score: 674 8/2010
Current Score: Your TransUnion FICO® score:
703
On November 17, 2012

Goal Score: 720+


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Message 1 of 7
6 REPLIES
Valued Contributor

Re: Last two years tax returns...and income this year

I think they are going to average it out.

Message 2 of 7
Frequent Contributor

Re: Last two years tax returns...and income this year

why wouldn't they use your paystubs?


Message 3 of 7
Established Contributor

Re: Last two years tax returns...and income this year

When a mortgage lenders asks for the last 2 years tax returns and year to date income, it usually means that the borrower is self employed.  The income used to qualify is averaged.

Message 4 of 7
Valued Member

Re: Last two years tax returns...and income this year

I have never been self employed, but they want 2 years tax returns, w2's, and last two paystubs


Starting Score: 674 8/2010
Current Score: Your TransUnion FICO® score:
703
On November 17, 2012

Goal Score: 720+


Take the FICO Fitness Challenge

Message 5 of 7
Valued Contributor

Re: Last two years tax returns...and income this year

They wanted 2 years from me too, and im a W2.

Message 6 of 7
New Contributor

Re: Last two years tax returns...and income this year

They are also looking for non-reimbursed business expenses you may have taken as deductions.  They subtract these from your income when qualifying.

Message 7 of 7