Joyce Cucchiara | Peabody MA Listings. Real Estate, Lynnfield Real Estate, Middleton Real Estate


Applying for a mortgage is a big step towards homeownership and financial independence. If it’s your first time buying a home, you might be curious (and a little intimidated) about all of the things that go into your mortgage application.

When reviewing your application, mortgage lenders are trying to determine how risky it is to lend you money. If all goes well, and they determine that lending to you would be a worthy investment, you’ll get approved for a mortgage.

There are three main things that lenders will use when weighing your application (however, there are other factors as well).

First, they’ll run a detailed credit report. This will tell them how much other debt you have, what kind of accounts you have open, how long you’ve had this debt, and how responsible you are when it comes to making your monthly payments in time.

Second, they’ll consider how much money you’ll be using toward a down payment. A larger down payment alleviates some of the risk associated with lending to you. Therefore, people with little or no down payment saved can have a difficult time getting approved for a mortgage. And, if they do get approved, they’ll have to pay monthly private mortgage insurance on top of their regular mortgage payments.

Finally, the third main consideration will be your current income. Lenders will look at your previous two years of income (including tax returns) and will seek out current income verification from your employer.

The latter is a key part of getting approved, as lenders will want to ensure that you are in a stable financial situation and will be able to immediately start making mortgage payments.

Today’s post will center around income verification and how mortgage lenders will use your income to determine your borrowing eligibility.

How Do I Verify My Employment?

If you’re employed with a company, most lenders will reach out to your employer directly to verify your employment. You’ll be asked to sign a form that authorizes your employer to share these details with the lender, and then your part of the job is done and you can move on to the next step of your application.

Things get trickier when you’re a freelancer, are self-employed, or work with several clients as a contract worker. In these situations, lenders will typically require you to file a Form 4506-T with the IRS. This form allows your lender to obtain your tax returns directly from the IRS.

Can I submit additional information to verify my income?

There are some situations where providing additional income information can bolster your case in terms of getting approved for a mortgage.

If you own a business, your lender of choice may ask for a profit and loss statement. If you’re an independent contractor or freelancer, your clients who have paid you at least $600 or services or $10 in royalties will be required to send you a Form 1099-MISC.

If you have mixed income, such as a full-time job with freelance work on the side, showing these 1099-MISC forms can help increase your income on paper so that lenders will approve you or a higher mortgage amount or lower interest rate.



167 Russell Street, Peabody, MA 01960

West Peabody

Single-Family

$569,900
Price

7
Rooms
4
Beds
2
Baths
LOCATED IN THE HEART OF WEST PEABODY AND IN THE DESIRABLE BURKE SCHOOL NEIGHBORHOOD YOU WILL FIND THIS BEAUTIFULL RENOVATED CAPE STYLE HOME THAT OFFERS THAT HGTV LOOK FOR TODAY'S BUYER! Front to back living/family room with HW floors and access to an exterior balcony and huge closet for storage. SMASHING WHITE KITCHEN with granite counters, center island with pendant lights, SS appliances which beautifully flows into the dining room waiting for that farmers table you always wanted. First floor bedroom or optional office and a full bath with laundry hook up. Second level master bedrooms suite with Cathedral ceilings and master bath w/river rock shower. Two more bedrooms on the 2nd level with ample closet space and wooden plank floors. Awesome backyard with river views. Expansive 2 level barn for great storage or possible in-law set up. Steps to Independence Walkway Path. Peabody voted #5 hottest zip codes in USA!
Open House
Sunday
November 18 at 11:30 AM to 1:00 PM
Cannot make the Open Houses?
Location: 167 Russell Street, Peabody, MA 01960    Get Directions

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167 Russell Street, Peabody, MA 01960

West Peabody

Single-Family

$579,900
Price

7
Rooms
4
Beds
2
Baths
LOCATED IN THE HEART OF WEST PEABODY AND IN THE DESIRABLE BURKE SCHOOL NEIGHBORHOOD YOU WILL FIND THIS BEAUTIFULL RENOVATED CAPE STYLE HOME THAT OFFERS THAT HGTV LOOK FOR TODAY'S BUYER! Front to back living/family room with HW floors and access to an exterior balcony and huge closet for storage. SMASHING WHITE KITCHEN with granite counters, center island with pendant lights, SS appliances which beautifully flows into the dining room waiting for that farmers table you always wanted. First floor bedroom or optional office and a full bath with laundry hook up. Second level master bedrooms suite with Cathedral ceilings and master bath w/river rock shower. Two more bedrooms on the 2nd level with ample closet space and wooden plank floors. Awesome backyard with river views. Expansive 2 level barn for great storage or possible in-law set up. Steps to Independence Walkway Path. Peabody voted #5 hottest zip codes in USA!
Open House
Sunday
November 18 at 11:30 AM to 1:00 PM
Cannot make the Open Houses?
Location: 167 Russell Street, Peabody, MA 01960    Get Directions

Similar Properties




2-A Farm Avenue, Peabody, MA 01960

Single-Family

$459,900
Price

6
Rooms
3
Beds
2
Baths
AWESOME GARRISON HOME WITH LOTS OF NICE LIVING SPACE FOR THE FAMILY. Front to back living room with maple hardwood floors and a nook that offers room for office space. Eat -in Kitchen offers stainless steel appliances and is open to the formal dining room with hardwood floors. First floor 3/4 bath. King size master bedroom on the second level with two walk-in closets & access to the main bath. Two more bedrooms both with double door closets and full bath with laundry. Room for expansion in the walk out unfinished basement that leads to a one car garage. Huge two level deck and 4 year old above ground pool for summer entertainment. New one year old heating system. Central air, partial fenced in yard, maintenance free vinyl siding and close major highway for easy commute. PEABODY VOTED #5 FROM USA TODAY FOR BEST PLACES TO LIVE IN THE USA.
Open House
Sunday
November 18 at 12:00 PM to 1:30 PM
Cannot make the Open Houses?
Location: 2-A Farm Avenue, Peabody, MA 01960    Get Directions

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This Single-Family in Peabody, MA recently sold for $360,000. This Ranch,Bungalow style home was sold by Joyce Cucchiara - Coldwell Banker Residential Brokerage.


28 Colonial Road, Peabody, MA 01960

Single-Family

$324,900
Price
$360,000
Sale Price

4
Rooms
2
Beds
1
Baths
Tucked away in the DESIRABLE GARDNER PARK neighborhood you will find this home with the THREE "C's" CHARMING, CUTE AND VERY COMFORTABLE! This property offers an Inviting living room with hardwood floors. Eat- in kitchen with some stainless steel appliances. Two nice size bedrooms both with hardwood floors and double door closets and a full bath. Off the kitchen is an additional huge walk-in storage closet or pantry! HUGE unfinished basement for potential future expansion. Garage, 10 year old roof and nice backyard for summer fun. Come to Peabody just voted one of the top 10 zip codes in the United States (#5) from USA Today. Commuter OH Thursday 5-6 PM 10/4 and OH Saturday 11:30 -1:30 10/6

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