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Income needs to be documented with 2yrs full tax returns...last 2yrs of w-2's, 2paystubs with at least 30days of pay/YTD, 2months of FULL bank statements, all asset statements.
If you have good credit AND you're putting money down, then the Underwriter might REQUIRE LESS. I recommend that you have ALL of this ready to give to any lender.
Banker---when you say you need 2 years of documentation, what if, like my fiance, he just started in his career? Do they not count him as making as much as he is if it's a recent employment? I mean, I have copies of our tax returns, but they definitely don't reflect how much he is actually making.
if salaried or hourly wage, the probably no.
if commissioned, selfemployed, overtime, definitely YES.
it will help the file to support income, but salary or fixed wages generally override the 2yr tax returns.
If he is receiving commissions then it's different ballgame.
Quote:
Originally Posted by DGDurmie
Banker---when you say you need 2 years of documentation, what if, like my fiance, he just started in his career? Do they not count him as making as much as he is if it's a recent employment? I mean, I have copies of our tax returns, but they definitely don't reflect how much he is actually making.
Location: Ohio, but moving to El Paso, TX August/September
434 posts, read 1,653,296 times
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Quote:
Originally Posted by DGDurmie
Banker---when you say you need 2 years of documentation, what if, like my fiance, he just started in his career? Do they not count him as making as much as he is if it's a recent employment? I mean, I have copies of our tax returns, but they definitely don't reflect how much he is actually making.
When my husband and our bought our house, he had his written job offer that stated his salary was to be $x a year. Since he had just come out of grad school, it was 3.5x higher than what was in his previous returns. They accepted that for his income since we were buying the house off of his income. Things might be different now with the mortgage meltdown though.
You and your husband make 110K, that's $9,166 per month. With little debt that you have, why not save up some money for down payment and go regular 30 year fixed loan? Don't get yourself into 20/80. How long have you been making these money, why don't you have any savings?
Are you in your 20's trying to buy a $250,000 house?? They will be just fine buying a home with as little as $0 down. They will be able to get a 30 year fixed rate. It is nearly impossible for 1s time homebuyers to save up 20% down in today's world. With their income there is no reason to waste years renting when they could own on very favorable terms.
Banker---when you say you need 2 years of documentation, what if, like my fiance, he just started in his career? Do they not count him as making as much as he is if it's a recent employment? I mean, I have copies of our tax returns, but they definitely don't reflect how much he is actually making.
If it's his career out of college that should be ok. I did the same thing. We bought a home 3 months after I started my "real" career job. It worked out fine. Oh, and I'm salaried.
Renting isn't always "wasting" your money since in most markets you pay much less in rent than for a comparable mortgage. If you're making 110k after taxes though, it really shouldn't take long to save 50k for a 20% downpayment - surely less than a year once other expenses have been paid. However, if they go ahead and borrow 100%, it shouldn't take them too long to pay off that first 20%, so I don't think it would be too bad.
You should be fine if you're not claiming overtime for hourly wages.
Quote:
Originally Posted by DGDurmie
Phew!!! Ok well he's hourly, so I guess that's good. I'll keep my fingers crossed.
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