topic Re: Loan Docs in Mortgage Loans

Loan Docs

Anonymous — Thu, 17 Jul 2008 13:06:03 GMT

We just received our approval letter from our LO so now we are going to start looking at houses ( wanted the approval first so I wouldn't get disappointed if denied). Looking at the documents the bank is assking for pay stubs showing $9166 in 30 days. I get paid every other week so I can not provide 2 pay stubs equalling 30 days, I can do 28 and 42, what do I do?

Re: Loan Docs

Anonymous — Thu, 17 Jul 2008 13:15:49 GMT

Ask your LO to see which they'd prefer. If nothing else, resort to basic math:

28/30 = (insert your 28 day salary)/x

Solve for x. This will show your salary equivalent to 30d.

If it's easier, divide your 28 day salary by 28 and mulitply by 30.

Re: Loan Docs

DallasLoanGuy — Thu, 17 Jul 2008 13:51:38 GMT

Actually, what your loan officer needs is "30 days of paystubs" which is 3 stubs in your case.

Is the LO new?

Re: Loan Docs

Anonymous — Fri, 18 Jul 2008 16:58:45 GMT

I don't know if there new, but it is possible that I mis-read the request. I will give them 3 stubs and see what they say. I also just figured out that when the loan app was filled out my salary was listed as $114K and it is $110K, don't know how that happened but should $4K make a big difference? They also didn't include my annual incentive that is guarenteed at a minimum of $32K, should that have counted? I don't plan to borrow all they say I can so it may not matter.

Re: Loan Docs

ShanetheMortgageMan — Fri, 18 Jul 2008 17:43:02 GMT

chrislo wrote:
I don't know if there new, but it is possible that I mis-read the request. I will give them 3 stubs and see what they say. I also just figured out that when the loan app was filled out my salary was listed as $114K and it is $110K, don't know how that happened but should $4K make a big difference? They also didn't include my annual incentive that is guarenteed at a minimum of $32K, should that have counted? I don't plan to borrow all they say I can so it may not matter.

Have you received an incentive in 2006 & 2007? If so then they should be able to include a 24 month average of the incentive.

Re: Loan Docs

Anonymous — Fri, 18 Jul 2008 17:58:10 GMT

Yes I have, every year for the last 17 years (of course it was smaller when my salary was smaller)

Re: Loan Docs

ShanetheMortgageMan — Fri, 18 Jul 2008 19:20:24 GMT

Then to use that income take what you've made in 2007, take what you've made YTD in 2008, and take what you've made in 2006 and multiply it by .5416% (since 6.5 months is .5416 of the year), and divide by 24 months and that should be the amount of "incentives" you should be able to use to qualify.