Challenge of The Day
 May 1 2014     Posted by Mary Poburan

Challenge of the Day...

INCOME CONFIRMATION:

How do you get paid? Do you receive a Salary or a wage? How long have you been working in the capacity that you are in? Did it change? When?Do you have guaranteed hours,or are you on commission? Do you have a permanent position or is it a contract? Does your income fluctuate at all and if so why?Do you receive bonuses and are they always the same?Are you self employed and if so are you incorporated or a sole proprietor? If incorporated do you pay yourself a wage or dividends? Is part of your income investment income or non taxable? Do you have a rental property? if so do you declare the income or not? Do you receive support payments from a divorce? Are they court ordered or not?...

Everyday, clients complete a mortgage application and do not realize that one of the MOST IMPORTANT questions is how much income they earn. It is rare to see someone on a fixed salary that never fluctuates but more importantly almost everyone has some type of anomaly to how they are paid. As we see Financing regulations tighten these questions will determine the successful outcome of a mortgage application.It is no longer reasonable to TELL me what you earn, you have to PROVE it. Most preapprovals fail because lenders are not asking the right questions up front and then the client is disappointed when they cannot get the mortgage they were "pre-approved for" Don't take chances with such a huge issue. Work with a professional who can anticipate the challenges and guide you through the process..