There are risks involved in securing mortgage loans that apply to both the borrower and lender. The lending companies expect you to repay the loan back with interest. In order for mortgage lenders to have confidence in your ability to pay them back, they review job history and hourly wages closely.
To calculate hourly wages, the mortgage lender uses your pay stub to determine how much you get paid per hour then multiply that amount with the amount of hours you work daily to determine the weekly pay. They then multiply it by fifty-two because there are fifty-two weeks in a year. After they get the product of the two, they divide it by twelve (twelve months in a year) and the quotient or outcome is your hourly wage.
Keep in mind that the lender would like you to be a full-time worker, which is a minimum of thirty-six hours per a week, and would like to have a pay stub or a W-2 form as proof. If you get paid in cash, there are several steps you need to take in order for the lenders to calculate your hourly wage. Your first option is to get written verification of income from your employer and the amount they have paid you year to date. The second option is if you get paid in cash and is unable to get a stub or a W-2, you will have to deposit your pay into your bank account with similar amounts at a pattern that such a lender is able to determine your hourly wage. After you acquire a record pay then you can withdraw the money. Most lenders prefer having a paycheck stub or W-2 because proof of cash payments is long and tedious.
