No W2 – No Problem

 In Qualifying for a Mortgage

At this time of year, we get a lot of questions from people who want to get approved for a loan, but they don’t yet have their W2 from 2020.  

Here’s what you need to know about that.

Employer Requirements

Employers are required to provide their employees with a W2 for the previous year by January 31 of the following year.  In other words, your employer is required to send you your W2 for 2020 by January 31, 2021.

Documentation Requirements

One of the documentation requirements to get approved for a mortgage is the W2 from the previous year.  However, if you need to get approved for a mortgage before you receive your W2, all you have to do is provide the final pay stub from the previous year.  That final pay stub will include your year-to-date income, which will be your total income for 2020.  So, your final pay stub will have all the information we need to approve your loan, even though you don’t have your W2 yet.

If the loan is going to be approved after January 31, we will need your W2, but if the loan is going to be approved before then, we do not need it.

Underwriting Requirements

There are many mortgage underwriting requirements that consumers worry about, but it’s important to realize that lenders want to make money, and the only way they can make money is to approve loans.  If there is a requirement that will prevent you from getting approved for a mortgage, lenders will do everything possible to work around that problem, as long as the information provided by the workaround provides the required information and is not deceptive in any way.  Underwriting guidelines cannot simply be ignored, but underwriters are allowed a certain amount of discretion when it comes to documentation requirements.

Need a free mortgage pre-approval to purchase a house or to refinance your current mortgage?  Contact us today and see how easy it is to get approved for a mortgage.

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