Total gross versus Federally Table Gross? (loan officer, loan, bank, deduct)

[ogplife]

When you are applying for a loan which figure do they use?

[janetvj]

Originally Posted by ogplife

When you are applying for a loan which figure do they use?

What exactly are you asking? Are you self-employed? If so, the bank will want to see your net income, after deducting business expenses, to make sure you have enough income left over to make the payments.

Whether you are self-employed or a wage-earner, the bank will also consider your debt-ratio to ensure you can afford the payments. This is in addition to the information listed on your tax return.

[ogplife]

Originally Posted by janetvj

What exactly are you asking? Are you self-employed? If so, the bank will want to see your net income, after deducting business expenses, to make sure you have enough income left over to make the payments.

Whether you are self-employed or a wage-earner, the bank will also consider your debt-ratio to ensure you can afford the payments. This is in addition to the information listed on your tax return.

When I get my check they seperate the two. My retirement contributions and mileage reimburesements are included in my total gross income, but mileage is not included in my federal taxable income which one will they use?

[renriq02]

they look at your base salary or hourly rate
they always seperate salary, commissions, bonuses, and overtime

if you're SE then they will use line 37/38 as your annual income
(there are more calculations for SE and they will use the average of 2yrs)

if you say you make 100k per year...a loan officer should ask if that's a base pay or what does that include

if you say 75k in base salary then you make 6250 per month on the base salary

that still leaves 25k so you may say that you receive bonuses and overtime
so then they will ask how much of each AND if you have been receiving it for the last 2 years

so your overtime is 15k, and you have been receiving it for the last two years
so that will be an extra 1250 per month and you must put this in the overtime section of the application

then there's the extra 10k which you say you make it in bonuses
BUT you say you have only received it for 1 year
Well most lenders will require 2 years so then you can't put that on your application

so your total annual income is 90k per year
6250 base salary
1250 overtime
7500 monthly pay

(they always use the gross not the net pay)

[ogplife]

Originally Posted by renriq02

they look at your base salary or hourly rate
they always seperate salary, commissions, bonuses, and overtime

if you're SE then they will use line 37/38 as your annual income
(there are more calculations for SE and they will use the average of 2yrs)

if you say you make 100k per year...a loan officer should ask if that's a base pay or what does that include

if you say 75k in base salary then you make 6250 per month on the base salary

that still leaves 25k so you may say that you receive bonuses and overtime
so then they will ask how much of each AND if you have been receiving it for the last 2 years

so your overtime is 15k, and you have been receiving it for the last two years
so that will be an extra 1250 per month and you must put this in the overtime section of the application

then there's the extra 10k which you say you make it in bonuses
BUT you say you have only received it for 1 year
Well most lenders will require 2 years so then you can't put that on your application

so your total annual income is 90k per year
6250 base salary
1250 overtime
7500 monthly pay

(they always use the gross not the net pay)

Thanks for the detailed explanation.