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Yawo64

Which Income: Full Time or Part-Time ?

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Hello,


 


 


I am in the mortage market, and need to clarify some questions about the income documentation required. 


 


My total yearly income is as follows:


 


Full Time Teaching Job: $68,000  [For the past 7 years]


Part-time Teaching (extra classes - all year - same college):  $36,000  [For the past 1 year]


Contract Job (1099s) - varies yearly:  $10,000 / Year  [For the past 2 years] 


 


Now, my loan officer is asking me to get an employment contract showing the extra pay for the extra (part-time) classes.  I am unable to get this since part-time work is optional and not written into my contract.  So will this income be disregarded?


 


How about the 1099 contract work - it varies, but it has been stable over the past two to three years.


 


Cheers,


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I'm not an expert on mortgages, but based on my personal experience, the bank is going to want evidence of your guaranteed income going forward.  So, "optional" and 1099c income is likely to be disregarded.

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Hi Yawo64,

 

The bank will do the following:

 

1.  Use your "guaranteed" W2 income at current rate, assuming you are in same line of work for 2 + years.  So, they will take your $68k, divide by 12, and use that as your monthly.

2.  At best, they will take your part-time teaching, and divide by 24.  This assumes you have a letter stating you will continue to get this income going forward.

3.  For your contract work, if you have 2 + years getting this, they will take the last 2 years income and once again, divide by 24.  If your income has shown a drop in year 2 from year 1, they will likely use the lower amount.

Good luck!

B

 

 

 

Full Time Teaching Job: $68,000  [For the past 7 years]

Part-time Teaching (extra classes - all year - same college):  $36,000  [For the past 1 year]

Contract Job (1099s) - varies yearly:  $10,000 / Year  [For the past 2 years] 

 

Now, my loan officer is asking me to get an employment contract showing the extra pay for the extra (part-time) classes.  I am unable to get this since part-time work is optional and not written into my contract.  So will this income be disregarded?

 

How about the 1099 contract work - it varies, but it has been stable over the past two to three years.

 

Cheers,

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