ON Canada - in my experience, Notice of Assessments is more critical than T4`s. Pay stubs and letter of employment would be essential. T4`s not really critical unless the lender has doubts about your paystub or if you have not filed your income tax on time.

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She does not contribute to my income or pay any portion of the mortgage. what can i do to have her information removed from consideration for a loan modification? should i only submit my pay stubs? or file to have her name removed from the title?

Since she is the co-borrower, her income was considered when you got the original loan so it must be considered now. You must show financial hardship when you're trying to get a modification; they want to see how the incomes of ALL borrowers have changed. The only way to have her name removed from the consideration is to refinance the loan in your name only, which will remove her name from the mortgage altogether. However, I suspect that if you are trying to get a loan modification on a mortgage that originally used your income AND your co-borrower's, you probably won't be able to qualify for a refinance using only your income. Having her name removed from the title to the home will only remove her portion of ownership. It will not remove her name from the mortgage. The only way to remove her name from the mortgage is to pay off the mortgage; you would have to do this by refinancing the loan or by selling the home.

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I don't feel comfortable faxing my bank statement and pay stubs to someone i've never seen. i have heard they are reputable, but is there a safer way to do this? there's too much identity theft out there and i just want peace of mind. any suggestions?

They have been around for at least 15 years. Just make sure you have the correct site, and not some site with misspellings (a fake site). If they were in the habit of cheating and frauding people, they would not be in business this long.

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We are in the underwriting stage of our fha loan. we received a copy of the approved appraisal along with a letter from the mortgage services company stating that our loan was approved upon some contingencies. they stated items such as home owners insurance, current pay stubs at closing, and id. the letter mentions the loan amount and loan terms. does this mean that we are actually approved for our loan? what happens now?

Terms of the approval is that your stated income upon application matches wirh pay stub, you also need house insurance on the property you are going to purchase. If there is a income shortfall the loan amount may be lowered to meet the affordability issues thus more downpayment may be needed. At this stage you need to get a solicitor to act on your behalf to help you close the property.

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March of last year i lost my job through no fault of my own company went out of biz. i have a mortgage where my apr is 9%. in july i called bank of america where i bank and ask about a refinance she said they cannot do one because one we owe 155k home is worth 120k and i am on unemployment. she did offer the making homes affordable program and switched me over to the loan modification dept. i talked to them and they took all of my income and expenses over the phone then they asked me to fax pay stubs, hardship letter, unemployment proff. they told me it will take 30-45 days to review the info. did not hear anything from them and then i called on day 45 they said they are still reviewing it. i thought this was a wash, we have also made our payment on time every month. then this last week fed-ex showed up with an envelope with a one page letter from boa letting us know what a trial payment will be our original payment was 1600 trial payment is 1090 it also said in a few days you will get more details. yesterday nov 2 another package showed up from fed ex this time a thicker package with a check list of more pay stubs, tax documents ect. this also had three cupons with a trial payment of 1077 one due dec 1, jan 1, feb 1. i still have not paid anything for nov yet. so i went online to make a nov payment and it was blocked and said call #1866 as this account has a special curmenstance. i called them up talked to a rep they said you are now in a trial payment asked it they can set up an automatic payment for that i said sure they set it up to be drafted dec 1st. i asked him about the nov payment i have not made one yet he told me dont worry about it. i also asked about if this was going to hurt my credit score he told me there is no way shape or form it will hurt me credit score. only way it will hurt your score if you dont pay your trial payment. i have been reading some people have been taking a hit on there credit even as they where told by there lender it will not. i recently got an offer from a credit card that gave me a 4.99% until balance is paid in full, they gave me a check to write out on my line of credit to my checking account this was 7k. i would hate for my loan company to put a late then my credit card would come back with the universal defuate clase and jack my apr up. do you think they can disclose this in writting or record a conversation with them. any thoughts would be great. thanks

They did a forebearance, this is all perfectly normal. You do not have a payment for Nov, make the Dec one as agreed. DO NOT mess up on any of these trial payments. This is your second chance, there won't be another one.

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I'm in the process of buying a new condo and in the paperwork they ask for credit history, pay stubs, job history, etc. (standard stuff) at this time, i have great credit but have about 10k in credit card bills and nothing in savings. while i still think i'll get approved, i was curious if they take in account what i have in my 401 (k)? i have $30k saved in there. do they factor that in on an approval?

That isn't normally evaluated because you won't necessarily be using that money to pay your bills . That has another purpose and is not regarded as something to establish creditworthiness. I would suggest getting a few dollars saved up before going in unless your income can be budgeted to allocate some money to your savings. Ten thousand dollars in debt and no money in savings isn't the best way to get in a house. It would suck if you did find a way to cover closing costs and then your car's engine blows. Check www.daveramsey.com.

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My wife and i are tryng to get a mortgage loan for a home. i am currently in school, not working, and due to bad credit history, will not be on the named on the loan. my wife makes good income, and has a good credit score. the problem we are running into is her debt-to-income ratio. she has a high amount of student loans from college. with her minimum loan payments factored in, we do not meet the standards in the debt to income ratio category. the company she works for pays her student loan payment for her each month. we have shown our potential lenders the paperwork proving that her company covers the student loans each month, and yet they cannot give us a straight answer as to whether we will be able to get a loan. this loan payment is documented on all of her pay stubs, and is in her contract with the company. the banks still tell us that the minimum loan payments may still be factored in. i would think that the fact that her loan payments are made for her would either a.) eliminate her minimum payments from consideration, putting us within the guidelines for the loan, or b.) the payment made should be counted as income from the company, also putting us within guidelines for the loan. we have presented this to a small community bank and a nationwide lender, and got the same "i have to look into it" answer from both. we qualify for the loan in every other category. what am i missing? we still have to present this to a credit union, but may be difficult because i read that credit unions dont always loan to first time home buyers. please help.

Most lenders require that payments made on behalf of a borrower by an employer, family member, etc. be documented for an extended period of time; usually not less that 6 months. Your request is reasonable however, and I feel you should be able to get a loan; all else considered. There are a few items which may cause additional issues, ie. whether or not you reside in a community property state, how long your wife has been employed, what kind of loan you're applying for, etc.

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Hey, i'd like to buy a house one day, and i am a full time waitress. i love my job, but trying to get a loan, let alone a mortgage seems nearly impossible. the bank looks at my pay stub, and sees that i make minimum wage. i am wondering if anyone has any advice, or knows how to go about preparing to get a mortgage when it looks like (on paper) i make very little money? tips are not recorded on the pay stub, and i claim tips as extra income on my taxes.

Hey, You should complete a financial review with a financial planner to accurately see your capabilities on paper. There are usually a lot of ways one can work around your income to afford a mortgage , but a complete review of your current situation taking into account your goals and concerns....is a must in order to accurately determine where you are now/opposed to where you want to be in the future (ie. purchasing a home) If you are in Toronto or around the GTA I could do this with you, at no cost obviously. I am a financial planner with Investors Group and I would be glad to sit down with you to analyze your situation and try to come up with a plan to get you there. It can be done. I have clients who have had the same questions. Please let me know. wes.boag@investorsgroup.com or (416)491-7400, ext 681 Take care Wes

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I asked a question a while ago, but i will restate it with our current dilemma. my wife and i are trying to buy a home. we're having a ton of trouble getting a loan because of a couple issues we have. i have a poor credit score and i'm a full time student, so i am not working. my wife's score is good, so she is going on the note alone (if we get one). we live in wisconsin, which is a marital property state, so even though i'm not going to be on the loan, my debt is being considered in the loan application. i do not have a significant amount of debt, so that's not really an issue. the issue we are having is with our debt to income ratio. read on.... my wife is a physical therapist in a fairly large health care system. she has a doctorate degree from a private catholic university, so she has a very significant amount of school loans. with the amount of money she makes, our debt to income ratio does not meet the necessary standards to obtain a mortgage because of the high student loan payments we are responsible for. keep reading please.... now, the company my wife works for pays all of her student loans for her. this fact is well documented, shows on her pay stubs, and she pays taxes on this income. this income for her student loans amounts to an extra $10,000 per year and covers her payments 100%. the company has been making her loan payments on her behalf for 9 months. when the extra $10,000 is figured in as income, it puts our debt to income ratio at 39%, which is below the standard that we have been told (41%). forgive me if i sound like an idiot when giving these figures, i'm not sure exactly how to present them. so far, every bank we have applied for a loan will not accept these payments made as income, and still count her minimum loan payment each month as debt. i cannot understand why they do this. if the extra $10,000 was paid directly to her, it would just mean she makes that much more, but since it goes straight to her loan holders, the banks will not accept it as income. i am shocked and appalled that they wont either accept the loan payments as income or wipe her loan minimums off the board because we don't pay them, her company does. the loan payment is written into her contract with the health care system, and shows on all of her pay stubs, but not accepted because "she could leave the job." so my questions are this... why exactly will the banks not acknowledge the extra income? are there any good, reputable national mortgage loan companies that will acknowledge this benefit as income? we're both very upset about all of this because we have an accepted offer on this house, and we were pre-qualified for our loan, only to have the loan officer tell us we were declined after two weeks of telling us we had nothing to worry about. i'm ready to give up, but my wife wants to keep trying, so please help us! thank you. keith

Banks look at consistent almost guaranteed income. Extra income is too sporadic for them to consider. Your monthly debt payments are too high! The issue has to do with debt ratios. A rule of thumb is that you can afford a mortgage that is 3 to 3-1/2 times your gross annual income (before taxes). In general, lenders will let you spend between 28 to 33% of your gross monthly income on your mortgage payment (including property taxes and insurance). Your total debt load (mortgage plus car payments and minimum payments on revolving balances) must not exceed about 38 to 41% of your gross monthly income. These numbers are realistic general guidelines and your situation could be different.

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I'm buying through one real estate agency, but the agency selling the house is demanding my credit scores, pay stubs, letters from my employer, etc. before they'll sell me a house. however my mortgage company has already approved me for the loan! can they legally do this?

If you are pre-qualified through a mortgage company then the mortgage company should have given you a letter detailing the amount they are giving. The letter should be all that you need to send the seller. Get your mortgage company to call them. Being "approved" and "pre-qualified are very different. Approve just means that a broad view of your finance and credit has been looked at. Pre-qualified means they have reviewed everything and given you a letter stating exactly what you are qualified for.

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Please no scammers answer this question. i've gotten answers before trying to get me to contact some random person i'm quite sure is not a reputable mortgage broker. i am renting right now, have been renting for three years, and have never been late on a payment. i pay all my utilities on time, cell phone, electric, etc. i am a full time law student, and also work, but i just started a job since the aba won't allow first year students to work. long story short, i make about $2500/month, but i am a 1099 independent contractor. however, i receive pay stubs from my job, so i have verifiable income history. i'm looking to get out of my apartment because my landlord has had a history of not paying water and sewer, not paying his mortgage, etc, and now he wants to move to a month to month lease and sell the building. i would have a hard time finding someplace that would allow me to have three dogs(labs), so i would like to buy a house. i'm looking at something very inexpensive, like $50,000 or less, something i can do a little work to, that would be a house i can live in for like 5 years until i graduate law school and can pay down my student loans. what do i need to do to get a mortgage? i've never filed taxes before, and won't be doing so until 2009 because i've been a student. i've read about programs that would allow me to get a letter from my landlord and utility companies stating that i've made my payments on time and use that to help me get a loan, but basically i'm at a loss. my parents and grandparents are willing to cosign, but my parents have crappy credit and a good income, and my grandmother has little income and pristine credit, so i don't know if either one of them would help me. any ideas?

You need to have an established credit record with good credit to get a mortgage. A couple of credit cards, a car loan and at least two years at the same job will show credit worthiness. Being self-employed does not take you out of the running but you really need a few years of 1040's to show that your income is stable. Also, the size of your down payment will come into play. 20% should be your minimum.