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Old 06-02-2010, 09:36 AM
 
11 posts, read 42,577 times
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Default Verification of Employment question

Has anyone ever heard of a Verification of Employment causing your loan to get denied because your employer will not confirm you are able to do overtime?
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Old 06-02-2010, 12:17 PM
 
Location: anywhere
1,730 posts, read 2,693,775 times
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Are they using your overtime as part of your monthly income? If not have whoever is filling out the VOE state cannot answer due to company policy in the box asking about overtime. Some lenders nowadays get freaky when any part of the voe is left blank.
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Old 06-02-2010, 12:21 PM
 
Location: Plano, Texas
1,672 posts, read 4,337,100 times
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With today's underwriting, anything is possible.
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Old 06-02-2010, 02:12 PM
 
11 posts, read 42,577 times
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It seems like they want to verify my overtime as part of my salary, but the mortgage payment is 28% of my base salary. I was told from the beginning that I had to be under 33%...... I am so worried! I am supposed to close on the 21st of this month...
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Old 06-02-2010, 03:18 PM
 
68 posts, read 272,650 times
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Talk to your HR that you have a VOE (Verification of employment) coming from applying a home loan and you need them to count every penny you get from the company that's part of the salary/W2, if you are getting cash *not a good thing* because they won't admit they are paying you cash, so they can only report what they report to IRS.

but if your overtime is considered part of your salary "when you have overtime" then they should put it, talk to your HR, although you're not supposed to have any contact with that form, but no one says you can't tell them they will be getting this form and need it as accurate as possible.
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Old 06-02-2010, 04:27 PM
 
73 posts, read 116,870 times
Reputation: 81
Default VOE form

It's at times like this when you need to be really nice to your HR manager! As long as you are not asking them to out right lie for you (this would be fraud) I cannot see that having some additional overtime would be a deal breaker.
I saw my VOE after the fact and there really is not much to it. If you have gone this far I'm sure you will be fine. Best of luck
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Old 06-02-2010, 04:50 PM
 
68 posts, read 272,650 times
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I'm sure the UW's aren't that stupid, so they will basically base your qualifications on a 40 hr work week and consider the overtime as an extra incentive for payment, so having the HR write it down is still a good thing that you will possibly be getting paid more, even if it's not a means for qualification.
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Old 06-03-2010, 09:01 AM
 
11 posts, read 42,577 times
Reputation: 17
Thanks everyone for the responses... here is some details of the situation.
When i first began my conversations with this bank about my loan, they asked me how much overtime i normally do. I told them the truth, about 2 - 3 hours a week on average, but am able to do more if needed - usually about 5 hours is the max. So as things progressed, I provided pay stubs, W-2's, even 1040's. All of these documents have my income with overtime included. I also got a raise in april, so looking at the YTD earnings on my paystub, it may not have been adding up for them, as they did not ask when my last pay increase was. When the bank provided me with a conditional approval, they said they were waiting to obtain the VOE from my employer, and it needed to show my overtime history and whether or not it was likely to continue. I work for a large corporation and the person who fills out the VOE is not located in my office. So after some serious detective work, I was able to figure out who does complete the forms and I called her. I was very nice ... trying to see if I could get a feel for how much detail they would put on the form. The woman told me that they would not actually fill out the form, but they would provide her with a standard print out of what they provide with all income information. She also stated that it was a company policy that they do not provided information on whether OT is likely to continue, even if it is. So, that has me a little nervous
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Old 06-03-2010, 04:55 PM
 
46 posts, read 131,036 times
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You will be just fine, if your base pay is 28% of your PITI as long as the back end DTI is within limits.
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Old 06-03-2010, 05:38 PM
 
Location: anywhere
1,730 posts, read 2,693,775 times
Reputation: 1733
Your LO or LP at this point should be redoing your 1003 and 1008 reflecting base pay only with a letter of explantion to the underwriter so they can go ahead and redo at the lower income. You will be fine. Hang in there. I know this is a terrifying process.
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