Our experiences have identified a few key employment issues for past buyers that were already pre-approved.
- Buyer was transferred here to Michigan with same employer
- Need 30 days of pay stubs at new location
- Results in DELAYED CLOSING
- Buyer changed employers after initial pre-approval was done
- Income now commission based
- Results in DELAYED CLOSING
- Buyer leaves current job and buys a business after initial pre-approval
- Buyer did not inform anyone until new offer was accepted
- Results in DEAD DEAL
Here are some Key Points about Income:
♦ Need 1 year history for Bonuses and Overtime
♦ Job gaps will require an Explanation Letter
♦ Must receive 1 pay-stub after returning from Maternity leave
♦ New job requires 30 days of pay-stubsMake sure to encourage buyers to have updated pre-approval letters and keep everyone on the same page!
Posts tagged INCOME
Employment pitfalls for buyers
Approval process issues – Road blocks
The approval process isn’t difficult as long as your paying attention to the details. Here are what we see underwriters questioning everyday.
- Internet printouts in place of actual bank statements: These often to not show account numbers and names
- We need all pages of statements (Yes, including the irrelevant last page)
- Large, non-payroll deposits need to be explained and documented
(Such as a $500 savings deposit)- Earnest money deposits must clear your account to get credit at closing – Be sure your realtor deposits your check ASAP to expedite clearing your account
- Include ALL schedules & pages when providing tax returns
(Not just first 2 pages of 1040)- Page 2 of 1040 needs to be signed
- Be sure your drivers license is NOT expired!
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