So I'm about to close escrow in 2 weeks on my San Marcos home. I initially started the loan process with Wells Fargo, and they ended up dropping my application because my verification of employment total earnings for 2010 and 2011 did not match my W2 earnings. I thought it was strange, I have refinanced many times and never had an issue with VOE income reported and W2. So I went with my usual loan broker, and two weeks before closing, she's telling me the same thing. I decided to look into this, and found 2 discrepancies. First, my base salary reported by my employer on the VOE form is for salary plus vacation days plus holiday plus retroactive pay (promotional pay increase paid retroactively). Each of these item is listed as separate line items on my W2. Second, my employer reports the total income as the box 1 of my W2 plus any pre-tax deductions. My W2 lists all the deductions (401k, health plan premium, etc.), but only has my 401k in box 12.
I've been with the same company for 10 years, so I've never seen another W2, but I heard from other people that this is not common that an employer will separate base salary, vacation, holiday, etc. However, I think it's pretty common for box 1 of W2 to be different from the gross earnings, since I think many companies offer 401k and health care coverage. What I find perplexing is why 2 lenders now are bringing up this discrepancy, since they should have dealt with this all the time? I wrote a letter of explanation to the lender on exactly what needs to be added up in the W2 to arrive at the base salary and total earnings reported by my employer. All the numbers are on the W2 and they all add up.
I'm getting really worried, and really stressed now, since I'm so close to closing, and I really don't have much time to reapply for another loan if this one gets denied as well. I'm dealing with a smaller lender, and I hope they give me more personal attention than Wells Fargo, but has anyone here have experience with this situation? Am I at risk of getting this loan denied?
I've been with the same company for 10 years, so I've never seen another W2, but I heard from other people that this is not common that an employer will separate base salary, vacation, holiday, etc. However, I think it's pretty common for box 1 of W2 to be different from the gross earnings, since I think many companies offer 401k and health care coverage. What I find perplexing is why 2 lenders now are bringing up this discrepancy, since they should have dealt with this all the time? I wrote a letter of explanation to the lender on exactly what needs to be added up in the W2 to arrive at the base salary and total earnings reported by my employer. All the numbers are on the W2 and they all add up.
I'm getting really worried, and really stressed now, since I'm so close to closing, and I really don't have much time to reapply for another loan if this one gets denied as well. I'm dealing with a smaller lender, and I hope they give me more personal attention than Wells Fargo, but has anyone here have experience with this situation? Am I at risk of getting this loan denied?