topic Re: Question on Income in Mortgage Loans

Question on Income

raisinitup — Tue, 05 Feb 2013 02:44:20 GMT

When a LO looks at your income are they considering your W2 income, current paystubs or both ? My husband took a job making about 15k more almost a year ago but his W2 of course shows what he made last year. So I'm asking for 2 reasons - how will the income affect how much of a house we qualify for and if we do a USDA loan, would we use our W2 income for income eligibility or our current paystubs ?

Re: Question on Income

Anonymous — Tue, 05 Feb 2013 03:35:39 GMT

@kmathies wrote:
When a LO looks at your income are they considering your W2 income, current paystubs or both ? My husband took a job making about 15k more almost a year ago but his W2 of course shows what he made last year. So I'm asking for 2 reasons - how will the income affect how much of a house we qualify for and if we do a USDA loan, would we use our W2 income for income eligibility or our current paystubs ?

Generally they ask for your last month or two paystubs. They will do a VOE (verification of employment) to confirm things. They also do ask for W2's, to confirm your employment history, income, taxes, etc etc...

Your husband should say I make such and such a year including all raises. Your paystubs will dictate if what he states is true. Lets say you make $78K a year as a salary, your paystubs would reflect $1500 weekly. If you are paid hourly then your paystub will state the hourly wage. Bonus, commissions, overtime, are also looked at, for possible additional income.

Re: Question on Income

boomhower — Tue, 05 Feb 2013 13:47:17 GMT

When I did mine last year they asked for two years of w2's and last two paychecks to verify that it was still accurate. If you recently got a big raise recently they will take that into consideration.

Re: Question on Income

Adalen — Tue, 05 Feb 2013 15:22:15 GMT

I was wondering if they factor in things like leave. I think my LO mostly based it off of my paystubs but I made quite a bit less the last two years because I was on maternity leave one year and baby bonding last year (took home half pay for 6 and 12 weeks). Also, talk about a perfect time to have a two-years-long 6% budgetary paycut from work. (Sarcasm.)

Re: Question on Income

JonRun — Tue, 05 Feb 2013 15:27:10 GMT

My LO wanted my last 2 years W2's but is basing my pay for DTI off what is on my most recent paystubs.

Re: Question on Income

Anonymous — Tue, 05 Feb 2013 17:06:07 GMT

+1, same here.

Re: Question on Income

jadeite788 — Tue, 05 Feb 2013 19:04:17 GMT

My LO asked for W2 for 2011, W2 current, last months pay check stub, and 2011 tax return, that was it.