Loan Processor how-to
How to Calculate Qualifying Income from Pay Stubs
Income drives approval.
Quick answer
Income drives approval. In short: get; find; calculate, then complete the remaining steps below.
Step by step
Get recent pay stubs.
Find pay frequency.
Calculate monthly income.
Average variable income.
Compare to W-2s.
Document the math.
Safety reminders for loan processors
- Protect borrower data
- Follow fair lending laws
- Prevent wire fraud
- Follow TRID timing
Key terms
Pipeline · Conditions · Clear to close · VOE · Appraisal · Title commitment: see the full loan processor glossary.