topic Re: Income verification question in General Credit Topics

Income verification question

Anonymous — Wed, 07 Oct 2020 15:16:37 GMT

When a bank asks for paystubs for income verication do they hold things like Child support payments, 401k loan payment, health insurance and other things against you that contribute to net income or do they verify your gross income?

Re: Income verification question

Girlzilla88 — Wed, 07 Oct 2020 17:13:13 GMT

It should be based off of Gross but I will let others chime in too

Re: Income verification question

iced — Wed, 07 Oct 2020 18:45:16 GMT

@Anonymous wrote:
When a bank asks for paystubs for income verication do they hold things like Child support payments, 401k loan payment, health insurance and other things against you that contribute to net income or do they verify your gross income?

I would guess it depends on the context why they're asking. If it were a mortgage lender/underwriter, those things absolutely would count as they affect DTI. If it's for something like a credit card limit, it's probably less likely to be looked at.

Re: Income verification question

Slabenstein — Wed, 07 Oct 2020 20:22:00 GMT

When I did lending at a CU, I used paystubs to calculate gross, but some things like garnishments or child support deductions would go into the DTI calc. Ordinary stuff that comes out of a paycheck like health insurance or 401k payments (as opposed to 401k loan repayment) ofc didn't count for that.

Re: Income verification question

Anonymous — Wed, 14 Oct 2020 09:41:43 GMT

I would look carefully at the verbiage.

Some creditors ask for gross income and some ask for net income.