#TwoforTuesday – Today I go over two lending tips for you LO’s to help you structure and get more deals done.  The most common misconception on the 1003 and incomes are addressed.  Seems lot of LO’s aren’t sure on how this works, or question income.  Here’s a cheat for you to apply.

The 1003 needs to have two years of work history and two years of housing history.  While in some cases (W2) the current 12 month income is looked at and the past 12 month housing payment history is analyzed, you still need to document TWO years on the 1003.  As far as income is concerned, the most common is those that are self employed and LO’s are attempting to “average” that income.  When in fact, it shows a decline in income over the past 2 years more than 25%!  That’s the magic number to remember, if the declining income is more than 25% decline, you don’t average, you just take the lower of the two years (most recent).  Some additional tips in today’s video where I go over this below! ↓

It’s one thing to develop the leads and referral partners to get on the phone with clients.  Once you start pulling credit and putting together deals, don’t forget the basics.  The 1003 is the heart of the transaction and all underwriters verify that information.  The more accurate the 1003, the more easily loans close.  – Remember that!

As always – #SellWell