Stability of income history for mortgage?

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eric c
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Stability of income history for mortgage?

Postby eric c » Mon Jan 16, 2012 2:18 am

What type of income history (how far back, how consistent) do you need to get approved for a higher dollar mortgage amount?

My income history last 5 years is very inconstant-

2012- estimate it to be comparable to last year, God willing
2011- $1.1 MM
2010- $150k (+ or - 15k cant remember off top of head)
2009- $35k
2008- $20k
2007- $5k

My credit score is really good, got a FICO in the very high 700's.

The house I want to buy is about $1.2 MM and I would put 20% down. With my income history would it be possible to get approved and at the best rate given the lack of stability with my income?

Not looking for wild guesses. Would like some concrete answers with at least 95% certainty. Anyone?


Capital
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Postby Capital » Mon Jan 16, 2012 8:51 pm

eric c wrote:Not looking for wild guesses. Would like some concrete answers with at least 95% certainty. Anyone?


The only person with 95% certainty would be your mortgage lender. This is an internet credit card forum, my friend.

The banks look at yearly, regular income to calculate whether you can safely afford the monthly mortgage payment. You've been well-employed for the past 4 years, so that combined with last year's income, a good credit score and a 20% down payment should be enough to get you the loan.

eric c
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Postby eric c » Mon Jan 16, 2012 9:29 pm

Thanks for feedback.

Do you know how far back the income history will be considered? I hear it's 2 tax years thought is the a definite thing? My worry is that the lender won't approve a mortgage of that size when they see my income levels 2009 and before.

2percentPlus
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Postby 2percentPlus » Tue Feb 21, 2012 11:45 pm

I think they are going to average the last two years. Anyways, who knows what your income will be next year, in your case I would pay cash and relax my mind.

namvet
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Postby namvet » Wed Feb 22, 2012 10:46 am

2 years of employments history is all that is verified for a mortgage app. Income prior to that is not considered.

JCarter
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Postby JCarter » Wed Mar 21, 2012 1:16 am

In your case, they will almost certainly want to see your taxes for 2 years, AND have an income verification / employment verification that this is full time employment and not temporary contract work. They'll also wonder a bit on why you went from 5k to $1.2 MM, but presuming you have good answers, and have a decent banker you should be approved.



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