Why do you need last 2 years of W2

lindel · ‎11-17-2016

Good evening!

Why do they have to have the last 2 years of W2s? For the year 2016, i make 50k, but for 2017, I made close to 75k. So which income will they use to determine how much house I can afford? The increase in pay comes from overtime and I've been on this job for 9 years.

Fico Scores :03/12/2015 Equifax 565, Transunion 585, Experian 563
Current Fico Scores 12/15/2015 EQ 612, TU 645, EX 655
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Anonymous · ‎11-17-2016

They will use the last 2 years filed and also will collect your last 2 paystubs. It is not 2017 yet and 2016 taxes have not been filed yet so it would be 2015 and 2014.

lindel · ‎11-17-2016

I should of said I don't plan on applying until next year. However, do they average it out usually no both years?

Fico Scores :03/12/2015 Equifax 565, Transunion 585, Experian 563
Current Fico Scores 12/15/2015 EQ 612, TU 645, EX 655
Kay Jewelers 4000/Barclays MC 1300/ Firestone1200/ Cap1 Quicksilver 2300/ NFCU nrewards secured 600/ Macys 600/ Walmart 3500/ Amazon 3500/ Cap 1 Journey 1050/ Kohls 300/ Banana Republic 3500/ Texaco 890/ BP 2000/ Jcrew 250/ Victoria Secrets 250/ Eddie Bauer 250/ Marisota 500/ SimplyBe 500/ Discount Tires 500/ Care Credit 1000/ American Eagle 150/ QVC 2000

StartingOver10 · ‎11-18-2016

@lindel wrote:
I should of said I don't plan on applying until next year. However, do they average it out usually no both years?

They only average if you are self-employed, 1099 or hourly. If you are a W-2 type employee, they will use your current verifiable income to calculate your ratios.

Anonymous · ‎11-18-2016

@StartingOver10 wrote:
@lindel wrote:
I should of said I don't plan on applying until next year. However, do they average it out usually no both years?
They only average if you are self-employed, 1099 or hourly. If you are a W-2 type employee, they will use your current verifiable income to calculate your ratios.

My husbands years were averaged because his income (W2) includes a yearly bonus.