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Old 06-13-2012, 09:05 AM
 
Location: Austin
7,205 posts, read 19,071,044 times
Reputation: 9813

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Quote:
Originally Posted by dcage View Post
This is for you falconheadWest, we have an appraisal coming out on Friday to appraise the house for us and we received a truth in lending disclosure in the mail yesterday, but then our broker called again this morning to tell us that they needed more checks stubs because the stubs we sent in last week my husband didn't have overtime on them compared to when we first started the process. My husband works at a plant and every so often they have what's called an outage and he work 60 plus hrs a week and now they are back on a regular schedule and now they want to see overtime and it dosen't work like that. But in the last two weeks he was able to work about 8hrs over. What do you think they are going to do? Decrease the loan amount? Very worried!!!
It's a little late now, but I just saw this question so I can answer it for any future people in the same situation. Basically, if the overtime is not consistent, they will not count it. They are looking for consistency in income which is why they asked for more pay stubs, to see if the overtime would continue to appear and continue to be about the same amount. Otherwise, they have no other choice but to only use the guaranteed income, which is the base salary or base 40 hour a week wage that is made.
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Old 06-13-2012, 11:32 AM
 
Location: NJ
1,421 posts, read 3,160,421 times
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Quote:
Originally Posted by FalconheadWest View Post
It's a little late now, but I just saw this question so I can answer it for any future people in the same situation. Basically, if the overtime is not consistent, they will not count it. They are looking for consistency in income which is why they asked for more pay stubs, to see if the overtime would continue to appear and continue to be about the same amount. Otherwise, they have no other choice but to only use the guaranteed income, which is the base salary or base 40 hour a week wage that is made.
has the overtime been consistent in the last 2 years? sometimes they will ask for a complete 2 year full verification of employment to be completed as well.
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Old 06-17-2012, 09:38 AM
 
Location: MID ATLANTIC
8,177 posts, read 20,148,059 times
Reputation: 9418
A comment sent alarms my way, "not as much overtime as when we started with the process." Just how long has it been? If it's been more than 45 - 60 days and your picture is constantly changing, it's rather unrealistic to expect the lender to count overtime that was once there and now is not. True, there is a two year average rule, but not if the overtime is now trending lower or down to nothing.

What you "use to have" cannot be averaged........this is true on a tax return for a self employed individual. Let's say a Schedule C employee has a net income of 80K for 2010 and a net income of 24K for 2011. Since the crisis hit, if income is trending down, the income is not averaged, but the most recent income is used over the average.
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Old 06-17-2012, 11:01 PM
 
7 posts, read 25,381 times
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Quote:
Originally Posted by SmartMoney View Post
What you "use to have" cannot be averaged........this is true on a tax return for a self employed individual. Let's say a Schedule C employee has a net income of 80K for 2010 and a net income of 24K for 2011. Since the crisis hit, if income is trending down, the income is not averaged, but the most recent income is used over the average.
I thought the lender could turn a self-employed individual down completely in this case. The assumption is that the decline will continue, and that the income will be below zero in a few years.
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Old 11-13-2013, 01:32 PM
 
1 posts, read 2,773 times
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say your score dropped and the lender say the best thing for you to do is to write a detailed letter to the underwriter stating what happen and those companies that report are payed off will you still b approved
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Old 11-14-2013, 08:51 PM
 
155 posts, read 491,549 times
Reputation: 62
Quote:
Originally Posted by thechappells View Post
as i understand it "underwriting is the process of reviewing a loan package after the loan officer has prepared it and the home has been appraised. when underwriting is complete the lender should issue a commitment."

okay. . .but we went thru the whole process of submitting everything the lender asked for (minus our first born ) why after the appraisal is underwriting done will a lender issue a commitment?!? shouldn't the pre-approval have covered my loan package? it just seems our lender has been "underwriting" since we first applied for the loan. i'm a FTHB, so please forgive me on my ignorance. we finally got our appraisal done and we're scheduled to close in a couple of weeks. my lender called last friday and told us she needed more of the same things we've already submitted (pay stubs, bank statements). . .she acted pretty nonchalant about it, but i guess i'm worried that after going thru this process that we won't get the clear to close. . .am i just being a worry wart?
I think they may ask for the latest month statement and pay check.
It will happen to all I send almost every document 2 or 3 times and the 12 month rent check I send 5 times earlier and now they ask for the new month. so I send it yesterday.
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Old 10-25-2015, 05:17 AM
 
1 posts, read 1,096 times
Reputation: 10
I own a house free and clear and am currently taking out a mortgage on the house for upgrades in the home. I only asked for 30,000 less than 40% of the appraised value of the home. I had to jump through hoops for the underwriter and now that I have complied with all that they have asked of me I am in conditional approval status. What in the world does that mean? My home is nothing but equity and according to them my credit and income is fine.
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Old 10-25-2015, 11:32 AM
 
3,806 posts, read 8,309,796 times
Reputation: 4948
Quote:
Originally Posted by marleen schiessl View Post
I own a house free and clear and am currently taking out a mortgage on the house for upgrades in the home. I only asked for 30,000 less than 40% of the appraised value of the home. I had to jump through hoops for the underwriter and now that I have complied with all that they have asked of me I am in conditional approval status. What in the world does that mean? My home is nothing but equity and according to them my credit and income is fine.
It's still a mortgage, and you have to meet a set of criteria. Conditional Approval means that you are approved with as-yet un-fulfilled conditions. Sometimes they are not conditions that the borrower has to meet - stuff like Title work still coming in, things like that. You should ask your lender, it might not be a big deal at all.
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