Ok we started this journey about 3 months ago. We brought my score up to 625. Now Wells Fargo pulled my income taxes and are trying to state my income as what was reported as taxable income on my income taxes. Is this a normal procedure? I know everyone says don't go with Wells Fargo but with my score at 6:25 don't really have any choice, and we have a baby on the way so we were hoping to get into a home before the beginning of the year. Do all other lenders go off your reported income after deductions or or is it just a wells Fargo wonderful?
Starting Score: 501
This normal. The days of stated income are long gone.
First off, I have to say that I was preapproved by NFCU, BB&T and WF. WF gave us the best deal and service. Maybe I am an anomaly, but they were wonderful with me. I had a 709 midscore, VA loan, 3.75% back when that was the lowest you could get, lot's of incentives, no down payment or PMI and I closed on a $416K house with about $2,300.
Yes, it is normal for them to get all the documentation they can get post Great Recession. It looks like you are actually giving them less than I did. I think we did 3 or four years of tax returns and pay stubs. UW was a bit of a stickler, but honestly, I thought it was a pretty easy process.
Good luck on your hunt and closing!
Are you saying that they are using your adjusted gross income? The income that is after all deductions?
Yes they are using my agi which after all of the deductions is a huge difference nearly 20000. I just don't think that all banks use this income. They may use your tax returns to verify income but not use your agi.
Yes we had start up cost for a business we started late in the year but those expenses are not reoccurring as I explained to our lo. So I guess if all other banks will follow in their procedures we will have to wait till the first of the year after we fill our 2012 taxes.