What income is considered when qualifying for a mortgage?
These days, everything has to be verified through W2s, paystubs, or tax returns. Certain types of income are verified in different ways.
For example, a self-employed person would need tax returns to verify their income. A self-employed person is someone who owns 25% or more of a company or is a contract employee whose employer doesn’t take out taxes so they have to file their own.
For a W2 employee who has a commission or a bonus, if that bonus or commission is greater than 25% of their annual income, they also need tax returns.
Understanding how incomes are verified for mortgages isn’t as difficult as you might think. If you have any questions, just give us a call or shoot us an email and we’d be more than happy to walk you through the process and explain exactly what the underwriter will be looking for. We look forward to hearing from you.