Wednesday, January 5, 2011

Mortgage Income Documentation

Lenders require much less income documentation than most people think. Here is what is generally needed:

W-2 income:
-- Most recent 30 days of pay stubs
-- Last two years of W-2's

Self-employment income:
-- Most recent two years of federal tax returns. State returns are not needed.

Commission income (if you make 25% or more of your income from commissions):
-- Most recent two years of federal tax returns. State returns are not needed.

Retirement and disability income:
-- Most recent award letter.

You only need to document the income you are actually using to qualify for the loan. If you don't need all your income to qualify, you don't need to document it.

Why do most lenders ask for more documentation than this? Because they don't know what they're doing! A good lender always runs a loan through software that Fannie Mae provides, and it tells us exactly what is required.

Want to watch our video of this tip? Check it out on our web site by clicking here.

Want to make sure your loan closes? Call the Mortgage Experts at 303-345-3683.

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