Cheryl K.: Hi, everybody. Cheryl and Clay!
Clay J.: Hello!
Cheryl K.: Coming at you with the third in our series this week on why you want to get your buyers pre-approved. Second leg in the stool is?
Clay J.: Income.
Cheryl K.: Income.
Clay J.: You know, one of the biggest things that happened after things kind of went crazy, was Frank Dodd came out with ATR, and that means ability to repay.
Clay J.: So we have to demonstrate an ability to repay, but income comes in a lot of different forms. You have commission, you have salary, you have dividends, you have bonus, you have overtime. So it’s, how are those things looked at?
So one of the most important things is looking at that and especially in a self-employed scenario, you know, we have to look at the full tax returns, business, if they’re applicable, and personal as well. And say, how does that look? Are there some things that we can add back in? And there usually is, that we can put back in for the income to qualify them.
But the most important thing, once you’ve got that credit, is let’s take a look at the income scenario. Two of your tax returns, sometimes three, if that will help things a little bit. And then, of course, last 30 days pay stubs and we’ll take a look at those things and determine what you’re going to best qualify for.
Cheryl K.: Absolutely. So, again, so important that you partner with a mortgage loan officer who knows what they’re doing, who can help you look great and help your buyer to navigate this process.
So, we’ll see you next time!
Clay J.: See ya, folks.