I’m confused about a request from my mortgage underwriter They asked me to explain why my year-to-date earnings don’t match my biweekly salary as shown on my W-2s and paystubs. My W-2s for the previous years show a gradual increase from 46k to 48k, and my recent paystubs for 2024 show a YTD of 50k due to a raise this year. I’m thinking they just need to know about the raise but it seems too straightforward. Any thoughts on this
You need to write a letter stating ‘I received a raise on this date’ and sign it. That should clear up any confusion for the underwriter.
Corey said:
You need to write a letter stating ‘I received a raise on this date’ and sign it. That should clear up any confusion for the underwriter.
The mortgage broker isn’t trying to make things difficult they’re just following procedure to close your deal.
Your underwriter is calculating your annual income based on your new biweekly salary and noticing a mismatch with your YTD earnings. Just confirm in a letter that your income increased due to a raise in 2024.
@Corey
Thanks for putting it into perspective with those calculations. I’ll make sure to mention the raise in my letter.
Aza said:
@Corey
Thanks for putting it into perspective with those calculations. I’ll make sure to mention the raise in my letter.
It sounds like you’ve got the right idea. Just stating the facts about your raise should be sufficient.
The underwriter is ensuring you didn’t have unpaid time off that could affect your financial stability. Just explain the timing of your raise in your letter to clarify any discrepancies.
Ainsley said:
The underwriter is ensuring you didn’t have unpaid time off that could affect your financial stability. Just explain the timing of your raise in your letter to clarify any discrepancies.
Thanks for explaining that. It helps to understand what they might be thinking. I’ll keep my letter straightforward and factual.
@Aza
Absolutely, keeping it simple and to the point is the best approach here.
It’s really about documentation for the underwriter. Providing a clear, concise letter stating when you received your raise will help satisfy their requirements.
Sam said:
It’s really about documentation for the underwriter. Providing a clear, concise letter stating when you received your raise will help satisfy their requirements.
That’s reassuring, thanks. I’ll include that information and keep it brief.
@Aza
Right, that’s all you need to do. They just need the facts on file.
Ask your loan officer for any specifics they might need in the letter to make sure it meets the underwriter’s needs.
Just mention in your letter the date you received the raise. This will explain the difference and should resolve the issue.
Valor said:
Just mention in your letter the date you received the raise. This will explain the difference and should resolve the issue.
Thanks, I’ll do just that!
It’s about matching the numbers. Your raise explains why the calculations based on your current salary might not line up perfectly with your YTD earnings.
They need an explanation in writing for their records. Just a simple letter should be enough to explain any salary discrepancies due to a raise.
Make sure to include any other details that might help the underwriter understand the discrepancy between your YTD earnings and current salary.
A brief explanation about when and how much your raise was will suffice. It’s a common procedure for verifying financial information.
Vesper said:
A brief explanation about when and how much your raise was will suffice. It’s a common procedure for verifying financial information.
Correct, it’s all about ensuring there’s no unexplained variance in your income.