Verification of Income for your loan. What to do?

So you are in the market to buy a home.  When you are qualifying for a California Home Loan, there are many steps to be comepleted.   One of which is showing your income.

So how do you do this?  There are three things we need to confirm your income.  This is for W'2 wage earners not Self employed.  That is a whole other story.

1. 1 months pay stubs or VOE - Verification of Income

2. W'2 for last 2 years
3. Tax returns. last 2 years


The first thing is pay stubs. We need paystubs that show.

• The pay period
• current pay 
• year to date - used to average your monthly wage
• name and address of employer
• any overtime

We could also go a Verification of employment.  This is when a form is sent to your employer and he fills in all the employement information we need.  Sometimes this is easier.

Next is W'2,  This will show employment and income consistancy.  Lenders are looking for stability and consistancy.  It will show how much you made each year.

Lastly is your last 2 years tax returns.  We need tax returns to see your right-offs.  If you write off deductions that we can add back into your income or if there are deduction that we hae to deduct from you income, we will see it in your tax returns.  All lender require you to sign form 4106 which allows them to get copies of your tax transcripts.  Yes, even if you give your tax returns.

I hope this helps you understand how VOI works.  If you have questions or comments please contact me via this blog or contact me at

831-801-8667, keithwoeste@yahoo.com
http://www.mortgages4california.com/ to apply today

Keith Woeste
Sierra Pacific Home Loans

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