Considering that people who work 100% on sales commission have months that can vary quite a bit, what do you they do to figure out your monthly income?
Chir–
When they figure out your monthly income do they take 3 years and divide it by 3 to get the average or do they tend to look at the most recent year and consider that your salary? Because, if you got this job right at of college it onlys obvious that it would just keep going up.
Well that all depends on your Credit, down payment, loan type, and how much you have in assets.
If you have excellent credit they may ask for very little verification, like you tell me and i believe you because of your credit. If your credit is good but not great they will ask for two years of taxes and take the lowest of the two years or take an average. With okay credit they will take an average of three years. But depending on the underwriter all this is subject to change.
How Brokers determine what they need is by reading the desktop underwriting results, from whoever they plan to sell the loan to. So it is not cut and dry.
Hope this helps, Good luck.
They will look at your total income from last year first. Then just divide it by 12 if they are trying to figure out your monthly income. Then they may compare with the years before that to establish a trend in your salary. It just depends on how important a factor your income is going to be in getting you approved.
Always remember these mortgage brokers work on Commission also, they will figure out a way to get you the sale as long as your income is decent overall.
I work on commission also, and this was how they did it for me.
References :
Normally they take average of your last three years income to assess your stability.your bank statement for 6 months would point the trend and pattern of your income
References :
Well that all depends on your Credit, down payment, loan type, and how much you have in assets.
If you have excellent credit they may ask for very little verification, like you tell me and i believe you because of your credit. If your credit is good but not great they will ask for two years of taxes and take the lowest of the two years or take an average. With okay credit they will take an average of three years. But depending on the underwriter all this is subject to change.
How Brokers determine what they need is by reading the desktop underwriting results, from whoever they plan to sell the loan to. So it is not cut and dry.
Hope this helps, Good luck.
References :
Mortgage Banker
Well, we are self employed, so it is kinda the same as commissions. What I have found in the past, is lenders look at our most recent income tax returns. Also, in speaking about mortgages, you may be interested in this new program. It works well with a 30, 20, or 15 year mortgage. I am currently using a HELOC (Home Equity Line of Credit) with a new software program that helps build equity fast, and will payoff my home in less than half the time without refinancing, and without extra payments. It is saving me thousands in interest, and pays off home in less than half the years. A HELOC is great for the self-employed, or people that have irregular income, because there is always a credit line there to tap into.
References :
http://www.payoffyourmortgagefast.net
http://www.u1stfinancial.com