Overtime and Bonus Income Mortgage Mondays #42

Overtime and Bonus Income Mortgage Mondays #42. Having Money Work Hard For You - Active Vs Passive income - Vancouver Mortgage Edit

Overtime and Bonus Income Mortgage Mondays #42 video duration 4 Minute(s) 43 Second(s), published by Matt the Mortgage Guy on 30 11 2015 - 05:20:11.

https://www.mattthemortgageguy.com 916-529-7600 Matt, the Mortgage Guy - Mortgage Mondays Episode 42, where I'm talking overtime and bonus income http://www.TorontoMarkhamRealEstate.com: Shubha Dasgupta, Mortgage Broker and Jas Jagpal, Real Estate Broker discuss the home buying process with .

. http://LeahCoss.ca "What is it that the banks are looking for when they're processing my application? When you ask me what my credit is or when you ask me Bai Jiang is a Mortgage Broker specializing in arranging financing for investors to build larger portfolios
He has helped clients (who have 40+ properties in .

https://www.mattthemortgageguy.com 916-529-7600
Matt, the Mortgage Guy - Mortgage Mondays Episode 42, where I'm talking overtime and bonus income and things of that nature. I work with buyers all the time that get paid in a variety of different ways. So, these questions come up quite often.

First off I will address overtime income. You may work for UPS and they're working 80 hours a week during the holidays and getting a lot of overtime income. What an underwriter is going to do to determine whether you can use that overtime income in your calculations, debt vs income calculations.

They are going to look at history and so if you received it in the past that's a good indication that you will receive it in the future. And you might have a payslip that shows year to date through ten months you got $5000 worth of overtime pay.

Now when they send the verification of employment to your employer, they're going to fill out what happened in 2013, 2014. They're going to show your base pay, your overtime, bonusses, anything of that nature. If things align and in 2013 you got $6000 for the year, in 2014 you got about $6000 for the year and now in 2015 got $5000 through ten months. That is a pretty good indicator that you've received it in the past, you are likely to receive it in the future.

For somebody like a UPS driver, who gets a lot of overtime during certain months, that is something that is probable to continue. So, that's overtime income. If you've received it, they are going to look through your history and they are going to average the overtime over two years. And that is how they are going to get to your number that they are going to give you on income when doing this calculation.

Very similar for bonus income. You get a big bonus every year at the financial firm you work at. It's based on performance, you get certain goals. You've done that in 2013 and 2014, It shows on your year to date in 2015. They are going to use your average of the last two years when they are determining your income.

And I work with folks that get tip income. They work in the service industry. They are a bartender or something of that nature or server. And it's the same thing. They are going to look at what your year to date says this year.
They are going to look at the verification of employment from your employer, who's going to fill this out. Here is your base or your hourly pay, here is your tip income, here is your bonus income. All that stuff is `going to be pretty black and white for an underwriter to say: Okay, they've received it for the past two years. We feel comfortable they are going to receive it in the future.

So, that's how that works.

Commissions work fairly similar as well. Where underwriters are simply going to say: Okay through 10 months this person's made $100 000 and if they work on a 100% commission, they're going to want to see something that aligns with that through 2013 and 2014 on those W2's. So if they made $110 000 in 2013, they made $118 000 in 2014 and they have made a $100 000 year to date through ten months in 2015. They will take a 2-year average when determining your monthly income.

But what they are not going to like to see is that you made $110 000, $118 000 and your year to date is $60 000 in 2015. That means things are declining. And that is a bad sign. Things are on the upswing that is great. They will use a 2-year average.

So, if you made $60 000 last year and you made a $140 000 year to date this year, don't think that you can qualify and use that monthly income based on this year's, year to date. It's going to be a 2-year average.

So, any questions to clarify, I am happy to answer. That's a little bit about bonus income, overtime income, tip income, commission income. But I am happy to go more in depth.

If you have any questions, feel free to reach out.

Matt, the Mortgage Guy - Mortgage Mondays.

In this episode I talk about overtime and bonus income. How underwriters determine if they can use this income. Also I touch on commission income and tip income. #Overtime #BonusIncome #Commission #TipIncome #LowInterestRates #CallMTMG #LocalLender #FirstTimeHomebuyers #RealEstate #Fannie #Freddie #ConventionalLoan #Local #DirectLender #SacramentoMortgage #HomePurchase #LowInterestRate #HomeLoans #PreApproval #CAHomeLoans #Mortgage #MattTheMortgageGuy