Do anyone know of a real estate terminology website? I am reviewing alot of the posting but I’m having difficulty with the terminology.
For example, what is stated income? ???
There are two basic types of income documentation for a real estate loan. Fully documented and stated. In a fully documented file we get your last 2 year w-2’s and your last 2 pay stubs to determine your income. If you are self employed we need your last 2 years of tax returns, all pages, and usually an up-to-date profit and loss by a 3rd party. It doesn’t have to be a CPA and it does not have to be audited.
stated income is where you tell us how much you make and we believe you if it is within range for your job. For most jobs, we go to www.salary.com to see if it is in range. We wouldn’t believe a janitor makes $100,000 a year but we would believe someone who owns a janitorial company does.
If you are self employed, we ask for a business license to show you have been in the same business for the last two years and usually a letter by a CPA or tax person that confirms you have been in that line of business for at least 2 years.
That makes sense – Thanks!! 