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I think that if you're up front with the lender, you have nothing to worry about. I don't see why you're worried about the pay being commission + salary - you have a pretty decent idea what your average commission is.
If the file was run thru an AUS (automated underwriting system, aka DU or LP) the automated approval needs to be re-run with the correct breakdown. Chances are high if the commission exceeds 25% of income, two most recent tax returns will be required, and then any work related expenses will be deducted from the two year average of commissions.
It's the old garbage in, garbage out. The loan officer will get findings (the AUS approval) and it will spell out exactly to the letter what is needed. If you are going with a full manual underwrite (meaning DU or LP is not used) that commission income needs to be averaged w/ tax return expenses backed out.
so when i give them my paystubs next week they will definitely have to redo the underwriting? its a credit union, so it is an actual underwriter checking everything out, not a computer.
all lenders use the AUS before they verify your documents.
they're not going to 'redo' the underwriting.
they haven't begun if they havent seen your paystubs
Quote:
Originally Posted by ooodsie
so when i give them my paystubs next week they will definitely have to redo the underwriting? its a credit union, so it is an actual underwriter checking everything out, not a computer.
She said I was almost through underwriting, that they would be done by the time I got the stubs for them but they would just be for my file.. Is it diff because its a credit union maybe they underwrote it without the stubs because they had my employment verification and also my w-2's?
That could be the case. Your employer most likely gave her your salary and commission info on your verification of employment. If that is the case, you should be fine...
Credit unions are a different animal. It really depends on their guidelines, so I won't presume to answer for them. Do you know if the loan is being delivered to another institution? Or is this going in the credit union's portfolio? If it's going to an outside lender post closing or prior to closing, then the odds are very high it must be re-run/re-underwritten. If it's being held, there is no telling. Your best bet is when you turn in the paystubs, you have your tax returns close by. I don't think anyone is going to give you a hard time, it is common practice these days to get the automated approval requiring a year-to-date paystub supporting the income used for the approval. This is definitely not worth losing any sleep over, unless you write off a large percentage of your income on your taxes. This would include a 2106 or on schedule A as unreimbursed job expenses.
If the correct income was used, just broken down differently, you are probably just fine. Also, in a situation like this, the higher the score, the less of an issue this will be. The more savings after closing, again, the less of an issue.
I am betting you're going to be fine.
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