About getting a mortgage loan?

Question by gracemleone: About getting a mortgage loan?
Hi,I am looking to purchase my first home. I have excellent credit and tin prove my current income through my paycheck stubs.I work as a waitress, and the previous places I have worked did not require that I report my tips, I know it is my responsibility to do so in the state of CA , but at the time I didn’t really think about it. Anyway, so I have a lot of unreported income that don’t show on my past W-2′s.However, at my current position, my paychecks reflect the exact amount I earn including tips. My question is, what is more important to lenders? Current income, or the ability to prove previous income? I have excellent credit and no debt. Will they take into consideration that unreported tips are a common issue?Thanks in advance for all your answers…

Best answer:

Answer by Ask Me Anything
It will only be a problem if you needed that *unreported income* to qualify for the loan. That is why it is so tough for self employed to get a house loan. We take a lot of deductions in order to pay as small tax as possible, but, when we go to get a mortgage, it bites us in the butt, because on our tax return, it looks like we are poorer than a church mouse! If your tax returns for the endure 2 years show you do enough to qualify for the loan, you should be ok.

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