Reblogged from: St. Louis Post-Dispatch – Scott Sheldon
Applying for a home loan these days requires detailed documentation. Expect to show everything from full tax returns, pay stubs, bank statements, to letters of explanation regarding your credit, debt, income and assets. However, that leaves quite a bit of room for challenges to pop up. Here are four common roadblocks you may encounter in the mortgage underwriting process, and how you can fix them.
1. Changes in Your Income
Let’s say the underwriter at the loan company determines — based upon your pay stubs and tax returns — that your income is lower than what the loan originator said it was. An easy way to offset that is a written verification of employment (VOE), which specifies and breaks down your income. This is especially important if you’re an hourly wage earner with gyrating income – such as varying hours worked, bonuses, or overtime – that has not been consistent for most of the past two years.
Lenders like to see two years of more or less consistent income history, but there are ways to work with that. If you don’t have this, you’ll need a lender who can work with your ancillary income with less than 24 months. This is the type of thing that can make or break your loan, especially with income outside of a traditional fixed salary.
Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.