Frequently Asked Questions
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- If I have income that's not reported on my tax return, can it be considered?
Generally, only income that is reported on your tax return can be considered when applying for a mortgage, unless the income is legally tax-free and isn't required to be reported.
- How will rental income be verified?
If you own rental properties, we'll generally ask for copies of your lease agreements and the most recent two year's federal tax return to verify your rental income. We'll review the Schedule E of the tax return to verify your rental income after all expenses except depreciation. Since depreciation is only a paper loss, it won't be counted against your rental income.
- I have income from dividends and/or interest. What documents will I need to provide?
Generally, two years of personal tax returns are required to verify the amount of your dividend and/or interest income so that an average of the amounts you receive can be calculated. In addition, we will need to verify your ownership of the assets that generate the income using copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes.
- Do I have to provide information about my child support, alimony or separate maintenance income?
Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan.
- Will my second job income be considered?
Typically, income from a second job will be considered if a two-year history of secondary employment can be verified.
- I've had a few employers in the last few years. Will that affect my ability to get a new mortgage?
Having changed employers frequently is typically not a hindrance to obtaining a new mortgage loan. This is particularly true if you made employment changes without being unemployed between jobs. We'll also look at your income advancements as you have changed employment. If you're paid on a commission basis, a recent job change may be an issue since we'll have a difficult time of predicting your earnings without a history with your new employer.
- I was in school before obtaining my current job. How do I complete the application?
If you were in school before your current job, enter the name of the school you attended and the length of time you were in school in the "length of employment" fields. You can enter a position of "student" and income of "0."
- I'm getting a gift from someone else. Is this an acceptable source of my down payment?
Depending on the product you choose and if the gift giver is related to you or your co-borrower, gifts are an acceptable source of down payment. We'll ask you for the name, address, and phone number of the gift giver, as well as the donor's relationship to you. Prior to closing, we'll verify that the gift funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the gift funds into your account.