Just imagine you have found the perfect house, started a new job and are ready to move forward with your life. Feels pretty good doesn’t it?

Now imagine that you have everything lined up except for one detail, a detail that is perhaps the most important of all. Prior to signing on the dotted line and happily moving forward, make sure that you take the time to sit down and go over the details with your Mortgage consultant.

With everything that has happened over the past few years, this has become increasingly important, especially as it relates to documenting and being able to use some income.   With the economy strengthening, we see employers adding additional hours, paying more overtime and even starting to pay bonuses.  Why is this important?  Because today, you will most likely need proof of a two year history of receiving any variable income, including overtime and bonuses, in order to have it included as income on a mortgage application.

If you have been working more hours at an hourly job and need this to qualify, you will need closer to a year’s worth of consistent hours to have that included in your Mortgage Qualifying income.   Another consideration is to have your employer guarantee the increased hours in writing when they receive the Verification of Employment.

Be sure you have all your paystubs, W-2’s and tax returns available to review with your Mortgage Consultant. Be prepared to  let your Mortgage Consultant know if there are any other sources of income and unreimbursed expenses that may show up on your tax returns.

You may feel that your new source of income will continue but remember you do need a proven history in most cases to consider.

With the information upfront we can guide you through a smoother qualification process.

By Chris Cope