Sec4-P22

A borrower applies for a mortgage and reports overtime and bonus income that significantly increases their qualifying income. The loan processor receives recent pay stubs showing these earnings but needs to determine whether the income can be used to qualify. The processor considers whether to request additional documentation from the employer before including the income in the underwriting calculation. Based on underwriting requirements, how should this income be handled?

A borrower plans to use funds from multiple accounts to cover cash-to-close requirements, including a checking account, a savings account, and a retirement account. The borrower provides only a single recent bank statement and states that older statements are unnecessary because sufficient funds are currently available. How should the loan processor evaluate this documentation?