Hope EVERYONE had a Great Thanksgiving!!
Ok. I started at Company "A" and was employed for 6 months. At the 6 month mark, Company "B" bought out Company "A." The name was changed.
Once the dust settled, I was given a healthy raise(🙌.)
NOW, with that being explained. Will my time at the Company "B" have to reach the 2 yr mark for loan approval?
Will my new pay rate have to reach that same milestone?(new pay rate 4 mos ago)
as a side: I work in the oilfield industry and have for the past 11 yrs straight.
Thanks in advance for any insight.😊
I❤️NY
>
W2 or 1099?
W2 this is no issue at all. 1099/C2C you'd need to reach some aggregate time period I'm not quite sure if it is 1 year or back to the old 2 years it was pre-pandemic. In your case you would just use two years tax returns anyway assuming no change in employment type.
W2 soon as you have two paystubs and it may just be two weeks period now, go apply.
Thanks for the quick response @Revelate 😊
Yes I a W2.
in terms of OT? - I work 12 hr shifts(mandatory) 2wks on/7 days off and paystubs prove that. With the NEW pay rate increase will it be considered moving forward(educated guess) or Will LO go off former pay rate(last years W2's)?
thanks 😊
I❤️NY
So the new base pay absolutely counts right now.
Not sure on overtime, that also has been two years tax return AFAIK with some other hoops to jump through. One of the LOs who probably won't be on till Monday hopefully can give you a more concrete answer on that.
@Revelate wrote:So the new base pay absolutely counts right now.
Not sure on overtime, that also has been two years tax return AFAIK with some other hoops to jump through. One of the LOs who probably won't be on till Monday hopefully can give you a more concrete answer on that.
Thank you kindly @Revelate - always a pleasure to see you on the forums. 😊
I❤️NY
It’s my understanding as long as you’re working in the same field you don’t have to wait for the 2 year mark. Also the higher the credit score the less this matters
@MortgageMama wrote:Company A and B count as ONE employer because they merged or where bought out. Call them company C in this case. Your current base pay with company C will be used. The OT holds to a different standard. Your OT will be averaged over the previous two years as long as you have received it for that time period between company A and B. Maybe I missed it, but I don't think you mentioned how long overall with company A and B. Two+ years combined?
June/2023 will be 2 yrs combined as company C. Also, OT has been regularly consistent throughout the entire time I've been there(A, B and now C.) Thank you for the response @MortgageMama 😊
@Seamslong wrote:
It’s my understanding as long as you’re working in the same field you don’t have to wait for the 2 year mark. Also the higher the credit score the less this matters
I'm pretty sure credit score matters not at all, I actually don't even think that is one of the compensatory factors when you're in let's make a deal territory with the DTI calc and perhaps other things when talking conventional at least but I legit don't know UW standards to that level of detail.
For me though a gap in W2 earnings in the 2 years proceeding just required a LOE. It's where you get to 1099 / bonus / commission income that you need the two years to justify it historically though I think that falls into compensatory land too in some cases. I'm pretty sure I'm sitting OK DTI wise on my own mortgage app with my base pay (I'm only 25% commission which is good news for me), though in January I will have 2 years in my commision based role.
Trying to get that into the DTI calc without the 2022 tax return may be hard so knock on wood I don't need it... I'm not likely to even have a W2 until just after I close, though new lender asked for end of year paystubs and that might work too.