Sometimes the difference between getting an approval on your loan or not comes down to what documentation your loan officer decides to leave out of a loan submission.
I’ll give you an example…
Let’s say you work a regular job, and at the end of the year you get a W-2.
Now let’s say last year you filed a Schedule A with your tax return and you took $25,000 of unreimbursed employment expenses as a deduction.
Factoring in the 25k deduction to your income calculation results in significantly lowering your income available for the loan submission.
Your loan officer sees this will kill your loan.
Your loan officer knows he has a “W-2 only” loan as one of his product options to place clients into. In other words he can submit the loan with W-2’s only to prove income, and leave the tax returns out. …Now he can get the loan approved and closed.
Was the loan officer ethically wrong to knowingly leave out the tax returns? …or, was he simply using a product that was available to him to serve his clients needs?
…this is a discussion for another day, but the bottom line is he got his clients loan closed using a product that was made available to him by the mortgage market place.
…p.s. I have a W-2 only program. …Just sayin’.
That’s it for today!
I hope you have a great day! Thanks for reading!
Brett