POLL: Homebuyers please answer.

[StageLeft]

When you were buying your most recent home: After you were pre-approved and shopping around and they had already qualified you, when you then went to close did they ask for yet another updated set of pay stubs (ie, period between pre-approval and closing)? Any posts are welcome.

 

[Yax]

Originally posted by: Skoorb
When you were buying your most recent home: After you were pre-approved and shopping around and they had already qualified you, when you then went to close did they ask for yet another updated set of pay stubs (ie, period between pre-approval and closing)? Any posts are welcome.

Yes.

 

[melly]

i plan on getting my pre-approval next week. can you tell me what i should bring with me to the bank?

paystubs
t1 statement

etc etc....

 

[StageLeft]

They wanted W2 (I guess same as T1), paystubs, and then since I had limited US credit history they wanted proof of accounts with utility companies and apartment.

 

[melly]

merci beaucoup!

 

[StageLeft]

:beer:

 

[Vic]

The conforming underwriting guideline is paystubs covering a period of 30 days employment (i.e. 1 if paid monthly, 2 if bi-weekly or semi-monthly, 4 if weekly), the date of the latest paystub to be no more than 30 days old at loan closing. As the home shopping process usually takes a month or so, it is the norm that updated paystubs would be required.

 

[MrPhelps]

Pre approved doesn't mean much, the real stuff is in the current w-2's and stubs. Its their money to loan you and they want to be sure you aren't a risk.



Good luck with your new home!

 

[RossMAN]

It depends on how much time has passed since you were first approved to when the signing of loan docs.

I'd say if it's more than 60 or 90 days they may need new income verification documents.

Also depends on your debt to service ratio, LTV (loan to value), credit score, length at residence, length at work and if you have any French-Canadian blood in you or not.

 

[StageLeft]

Originally posted by: Vic
The conforming underwriting guideline is paystubs covering a period of 30 days employment (i.e. 1 if paid monthly, 2 if bi-weekly or semi-monthly, 4 if weekly), the date of the latest paystub to be no more than 30 days old at loan closing. As the home shopping process usually takes a month or so, it is the norm that updated paystubs would be required.

OK how does this work then: Let's say I make a base salary of $50k/year (which I don't), and when billing full time I make a bonus equal to a yearly income of $150k. However since I bill only around 50% in any given month or quarter or whatever normally I end up making $100k. Let's further say that $100k was what I made in 2001 and also in 2002. $100k served as the income reported in the pre-approval and paystubs representative of such a salary were used in the pre-approval process. Now let's say I just got pre-approved, but I don't close for 2 months. And then two months from now they ask for paystubs but since I was unable to bill (still employed of course) my paystubs indicate that over the prior 30 days I made only the yearly equivalent of $50k.

Assuming that I'm still employed and my company is offering the same compensation package would the loan be rejected based on that 30 "crappy" days prior to closing, or would they still base the loan on the 2001 W2, 2002 W2, and estimate that probably I'm going to make $100k this year anyway even though the prior 30 days sucked?

It's a question I should be asking my loan officer but he is not at work at the moment and it causes me angst.

 

[Vic]

Originally posted by: RossMAN
...and if you have any French-Canadian blood in you or not.

LOL!


edit: Skoorb, underwriters don't care about how much you made on your last check. All they care about is the YTD average. edit2: and how that average compares to the monthly averages from your 2001 and 2002 W-2's (or Canadian equivalent).

 

[Storm]

So what did you guys end up deciding Skoorb? Going with the townhouse or a bigger house?

 

[Ameesh]

i am just closing on a house and i didn't have to provide them with another set.

 

[StageLeft]

Originally posted by: Vic

Originally posted by: RossMAN
...and if you have any French-Canadian blood in you or not.

LOL!


edit: Skoorb, underwriters don't care about how much you made on your last check. All they care about is the YTD average. edit2: and how that average compares to the monthly averages from your 2001 and 2002 W-2's (or Canadian equivalent).

OK so basically I can have a bad couple of months and as long as my compensation package is the same they'll use the paystubs more or less just as proof that I'm still employed rather than anything else. Ouch I just realized the YTD (since this has been a short year) will be much below the "$100k" is that a problem? It would be silly if it was in case you were buying a house in January since they'd have such a small basis of information, right?

 

[StageLeft]

Originally posted by: Storm
So what did you guys end up deciding Skoorb? Going with the townhouse or a bigger house?

House! Definitely a house

i am just closing on a house and i didn't have to provide them with another set.

Ameesh how long between pre-approval and closing was it for you?

 

[Ameesh]

Originally posted by: Skoorb

Originally posted by: Storm
So what did you guys end up deciding Skoorb? Going with the townhouse or a bigger house?

House! Definitely a house

i am just closing on a house and i didn't have to provide them with another set.

Ameesh how long between pre-approval and closing was it for you?

around 45 days

edit: but to be fair i had to change my lender last second because i got a way better rate from someone else.

i ended up locking in 4.625% at 1/2 point.

 

[StageLeft]

BUMP!

 

[dirtboy]

pre-qualified doesn't mean anything. A pre-qual letter means that a lender has briefly looked at your stuff and has said you should be able to qualify for a loan. You should have to bring in all your paperwork again.

pre-approved means everything. This means you pretty much already have the loan and for certain can borrow up to a certain amount. Shouldn't need to provide any additional information.

 

[Sundog]

Yes, they want proof that you are still have a job...

 

[StageLeft]

Originally posted by: dirtboy
pre-qualified doesn't mean anything. A pre-qual letter means that a lender has briefly looked at your stuff and has said you should be able to qualify for a loan. You should have to bring in all your paperwork again.

pre-approved means everything. This means you pretty much already have the loan and for certain can borrow up to a certain amount. Shouldn't need to provide any additional information.

OK I think I'm in the latter category but I will definitely make sure We've sent all our documents and he's done a check and told us we can make an offer up to the set amount that we discussed and what not. He said it's good for 120 days but I cannot remember if he said we will have to provide additional documentation or not

 

[mpitts]

No, they based things on the original pre-approval; no new paystubs required

 

[StageLeft]

the poll is neck and neck!

 

[HomeBrewerDude]

NO.

but we were lucky in that less than 2.5 months lapsed between our pre-approval and our closing.

 

[Sluggo]

When we bought our house we just got a no-doc loan and didnt have to supply any kind of income verification.

 

[dirtboy]

Originally posted by: Skoorb

Originally posted by: dirtboy
pre-qualified doesn't mean anything. A pre-qual letter means that a lender has briefly looked at your stuff and has said you should be able to qualify for a loan. You should have to bring in all your paperwork again.

pre-approved means everything. This means you pretty much already have the loan and for certain can borrow up to a certain amount. Shouldn't need to provide any additional information.

OK I think I'm in the latter category but I will definitely make sure We've sent all our documents and he's done a check and told us we can make an offer up to the set amount that we discussed and what not. He said it's good for 120 days but I cannot remember if he said we will have to provide additional documentation or not

Sounds like to me you've been pre-approved then! Have fun house shopping!!