When you're going through the mortgage application process, verifying income
is important to determine how much you can afford to borrow. Getting bonuses, commission
or overtime income is always great – spare cash is awesome, right? What's
even better is that extra income can help you qualify for more home. But, we have
to be able to document it properly.
When M&T Bank looks at your income history, we're looking at your income
history to understand how much you're likely to continue to earn in the future.
Typically, we ask for a two-year history of income documented by tax returns as
well as W-2 statements or pay stubs. It's not just how we roll – that's
a standard for the lending industry.
If your career is heavily based on commissions or tips, we'll need to see a
history of that “extra” income reflected in your tax returns or other official documentation.