Loan Docs

[Anonymous]

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?

[Anonymous]

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.       

[DallasLoanGuy]

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

Is the LO new?

[Anonymous]

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.

[ShanetheMortgageMan]

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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.

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

[Anonymous]

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

[ShanetheMortgageMan]

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.