I'm looking to buy a new home in the next few months. I've been previously working as a 1099 employee for a company for over 2 years. I've now transitioned to a W-2 employee (72k/yr salary). Along with my wife's 36k/yr salary, what will I expect during the application process, especially regarding income?
I think w2 is perceived as more stable, but it would help if you have 2-3 months worth of w2 paystubs to show them.
My experience is anecdotal, others may have different thoughts (esp. mortgage brokers), but I've found that some underwriters have zero ability to look at a situation that is anything out of the ordinary, and that includes changes in type of income like 1099.
Are you at the same company / industry? that would help.
+1 How long have you been W2 now? You are still with the same company? I believe you should be alright, might have to answer a few questions in manual underwriting.
Shogun, been with the company for over 2.5 years and started W2 as of October. Iam assuming I will need a couple months of paystubs as proof. Will getting a letter from employer help the underwriting process to show stability?