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How many hours do you have to work before you receive full time benefits? If you just started working full time 2 months ago, I can understand why anyone looking at your file would question your earnings, if the loan officer did nothing to address the situation. You can't submit W2s at 10K for 2009 (examples only), 11K for 2010, and then expect the mortgage company to accept 24K because you've been working those hours for the past 60 days. That's exactly how we got to where we are in this mortgage mess right now.
Can you get your employer to provide a letter stating you are now a full time employee? Are you now receiving benefits you weren't receiving prior to February? Can the employer list those out in the letter? Items like vacation pay, sick pay, and insurance benefits can all lend credibility to the new full time job. Additionally, why are you suddenly able to work full time now, when you weren't able for the past 3 years? What's changed?
Your case should have been approached from this angle from the get-go......and if you can't pass the sniff test on the sudden full time employment, your earnings should be averaged for the past two years.
Upon further questioning it seems the problem is pretty much as you described it. I feel the LO did not do enough to explain my case properly, or they were less than honest with me when they said I was a "slam dunk case."
I do have letters from my employer. Lots of them. Unfortunately at this job going full-time gives only a pay raise; there are no other benefits like you mention. I previously worked freelance in another profession, overseas, and that income did not require taxation and is therefore not on Federal tax returns. (There is absolutely nothing unsavory with that situation, it's 100% legitimate and proper with regards to the IRS. I feel the need to point that out becasue people see the word 'overseas' and immediately assume theres some sort of tax evasion going on. In reality, however, only large US corporations can get away with that.)
Okay, I am real confused now. You say you have been there part time for 3 years. So, I guess to get to the bottom of this, more exploring is needed.
Are you a W2 employee? Were you a 1099 employee, and just recently gone on W2?
No one is questioning earnings outside of the country being tax free, but was that was before this job, yes? Or are you saying your part-time income was overseas and you have only been paid in the US on a FT salary since February?
Are you a US citizen? A US citizen most certainly must claim earnings outside of the country. They don't have to pay taxes on them, but they must be declared on a tax return. I live in the metro DC area and we have thousands of contractors over in the Middle East right now, raking in some very high dollar, tax free income.......but it does wind up on tax returns on IRS form 2555. (There's a separate form for income earned outside of the USA).
This is a typical nightmare scenario to answer.........no offense, you probably aren't even aware. ..but getting to the bottom of this is like peeling back the layers of an onion. I am now wondering about the possibility the bank is correct in their assessment, but did a lousy job of explaining the facts to you.
Thanks again SM. No offense taken, of course, and I hope you can help me follow through with this. You have me a little worked up now!
First let us please ignore all aspects of my overseas work. I am a US citizen but I do not understand taxes. I therefore pay a qualified CPA to handle all of my returns. It was my mistake for even bringing it up; it is not necessarily germane to this subject. Now, the simple facts which are:
•I've been a W2 employee at the SAME store since 2/2008 through now. My job there continues and will continue into the future. I have letters attesting to this.
•From 2/2008 all through 2/2011 I worked there part-time; this varied from between 15-24 hours per week. All of this is well documented on my 1040s from the previous 3 years.
•Starting in the middle of this past February I began working there full-time, at the same store, though in a higher (better titled) position. It is still an hourly job (not salaried) and my schedule has 40 hours per week, but this is sometimes a little over or under 40. Apart from a pay raise, no other benefits have been added.
•Just so we're clear: I have been with the same employer continuously and without interruption for 39 months now, the last 2.5 of which being full-time.
•Other information: Credit score 740ish. Zero debts. 20-30% down on $120K sales price. About $100K in savings will remain after down-payment.
Now please tell me, do I have a chance of getting this loan?
Thank you again and please let me know if more information will help.
I spoke with my current lender today, which was the 3rd of the "2 or 3 days" they promised last week. They had no information other than to hope I get a response tomorrow. It's frustrating that they can give no information. (Most frustrating is that the girl with a tone sweet as can be just talks right over me, not actually listening. I'm sure she's fully accustomed to calls like that.)
I do want to wait this out another couple of days though. If this broker pulls through, there's a chance I can still make closing, or perhaps just delay it by a few days. If I switch brokers now, I start all over again and will need to delay by a few weeks, and likely need to pay for another appraisal.
I am already pre-approved at another local broker, though, so I'll be ready to switch to him if necessary. I don't however think it's ethical, wise or even possible to have two brokers trying at the same time to find a lender for me.
You need to find a lender that will go Fannie Mae direct. Get a letter from the employer that you are now full time status and work a minimum of _________hours. Then submit 1 months paystubs showing 38 (or whatever is considered FT) and make sure it matches the employer's letter.
The problem is, if you are saying you are full time and turning in paystubs with 35 hours one week and just a couple weeks at 40 hours, it looks like you are still part time, just with more hours.
Fannie Direct lenders shouldn't bee too hard to find. But when calling around, that's your first question, "do you have Fannie Mae Direct?" The rate is slightly (very slightly) higher than what you are getting from Wells, but it is the way we use to do loans.
I was told today that Wells Fargo outright denied the loan because I've only been full-time for 2.5 months. So that route was a total dead end. Isn't this something my current LO should have foreseen before giving me pre-approval?
They've gone to another lender and received preliminary approval. They're just waiting for the manager to give it the green light. But to be honest, I can't really believe what these people are telling me anymore.
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