Income Documentation

Helping the user understand and see examples of documents related to the income verification process.

8 Ways Out of Debt

I am asked on a regular basis how I would go about getting out debt and so I thought I would outline 8 easy things you can do to help.

Begin tracking your expenditures immediately. Most people have no idea where their money goes and by keeping a close eye on your purchases, you can determine which are needs versus which are wants.

What is a Capitalization Rate? - Definition

What is a Capitalization Rate? - Definition
A Capitalization Rate (also sometimes referred to as a Discount Rate) is used to help assess a current value on future earnings from a real estate property. The Capitalization Rate

What is a Capital Expenditure? - Definition

What is a Capital Expenditure? - Definition
A Capital Expenditure is also referred to as an investment. It is money used or spent to acquire or upgrade assets (such as property). A Capital Expenditure is typically

What is a No Documentation Loan? - Definition

What is a No Documentation Loan? - Definition
A true No Documentation loan has no income, asset, or employment information listed on the 1003 (loan application). This type of documentation generally requires a clean credit profile with high credit scores, and also is limited to

What is Light Documentation? - Definition

What is Light Documentation? - Definition
Light Documentation is typically used by alternative lenders to prove a shorter term of income with bank statements. Most lenders will use six months of bank statements to verify the income. This

What is an Annuity? - Definition

What is an Annuity? - Definition
An Annuity is a form of an investment that is typically provided by an insurance company. An annuity guarantees payments of pre-set amounts and pre-set times,

What is an Anchor? - Definition

What is an Anchor? - Definition
When dealing with investment type properties with rental incomes, an anchor is a long term tenant, that is financially stable and generally has a good credit rating.

What is a 403(b) Loan? - Definition

What is a 403(b) Loan? - Definition
A 403(b) loan is a loan that can be taken against the vested funds in an employee's 403(b) account. A 403(b) loan normally has a short repayment term of 1 to 5 years. However, if the funds are going to

What is a 401(k) Loan? - Definition

What is a 401(k) Loan? - Definition
A 401(k) loan is a loan that can be taken against the vested funds in an employee's 401(k) account. This type of loan usually has a short repayment term of 1 to 5 years. However, if the funds are to

What is a 403b? - Definition

What is a 403b? - Definition
A 403b is an investment plan non-profit organization employers that allows employees to invest tax deferred income for either retirement or emergency purposes. (The non-profit version of the 401k) While 403b accounts

What is a 401k? - Definition

What is a 401k? - Definition
A 401k is an investment plan generally sponsored by corporate type employers that allows employees to invest tax deferred income for either retirement or
emergency purposes. While 401k accounts

What is Stated Documentation? - Definition

What is Stated Documentation? - Definition
Stated Documentation can be used for both self employed or w2 wage earner’s. This documentation type is generally used because the borrower is not able to prove

What is Full Documentation? - Definition

What is Full Documentation? - Definition
Full Documentation implies that borrower is able to prove the income and assets that they are stating on the mortgage application. Documents used to verify

What is Income Documentation? - Definition

What is Income Documentation? - Definition
Income Documentation – Income Documents are used to prove a borrower’s ability to pay. A borrower’s ability to pay is one factor used to determine risk