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DTI calculation

Started by City_Boy_NYC
over 10 years ago
Posts: 0
Member since: May 2013
Discussion about
Placed a bid for a NYC co-op and the buyer accepted offer after reviewing my financials. After receiving the sales application to the board, I realized that the the income level used for the application must be based on what's shown on the most recent tax return form, instead of my current income level (big jump due to recent promotion), thus putting me at a much higher DTI. Is it common to use the last year's income level? All comments appreciated. Thanks!
Response by apt55
over 10 years ago
Posts: 127
Member since: May 2012

Yes. That's pretty standard. But you also usually need to show the last 2 pay stubs which will reflect your new salary. Also you usually have to submit a letter about yourself and you can indicate there about your income increase.

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Response by taxibutton
over 10 years ago
Posts: 42
Member since: Jul 2015

As Apt55 said, you'll have a chance to explain with an addendum note -- or even your verification of employment letter from your company saying your current (new) salary and title. Not to worry! :)

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