Qualifying For a Home Loan With Commission Income – Boston Mortgage Broker

Optical Illusions are great at magic shows
but terrible when it comes to your finances. I am going to tell you the story of a client
that income had two parts salary and commission. Before we dive into the story the rule for
calculating commission income is a two year average. I got a referred to a client that needed to
get a loan because he was previously turned down because of a low credit score. What made
the situation so stressful is he had his house on the market and already was under agreement
on another property. Wanting to get the quick facts I ask whats
your income, credit, and downpayment. He replied I make about 200,000 per year , 690 plus credit
score score, and a 20% downpayment which would of qualified him with my bank. I proceeded
with a loan application. During the process discovered he switched
jobs in 2012. His previous job had a high base pay with low commissions. His current
job had high commissions with low base pay. Sadly his qualifying income is low base pay
and an average of his commission of the previous two years which will not support both properties.
In other words his qualifying income is less than he made in each of the previous two years. My advice is the following when you apply
for a home loan Explain. You must tell the bank how you get
paid. Accuracy. Know when you started and left your
current job. Review. Go over all the facts of the mortgage
application. Contact me for a free consultation and subscribe
to my Youtube Channel to keep up to date on the latest mortgage and real estate trends.

Paul Whisler

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