Quote:
Originally Posted by Mike Oxlong
Yes I am a mortgage broker, and please feel free to ask me anything 
It varies from lender to lender on how they calculate or what they allow you to use for commisions.
Your base salary of $50,000 is fine. As long as you can prove you receive that no matter what you are good to go.
Most lenders will take your last 2 years of commisions and take the average. So if you had $10,000 in commisions in 2008 and $20,000 in 2009. Then they would add $15,000 to your base salary.
However, more and more lenders are now taking the LOWER of your last 2 years commisions and using that. So for the example above they would use your $10,000 from 2008. Keep in mind the commisions have to be taxable income. They need to see them reported separately from your base income.
In your situation because you are new at that position it might be tricky because you don't have previous years commisions from the same job. However if it is a job in the same or similar industry I bet we could find a lender who would accept previous commision earnings.
Make sense?
Feel free to fire away with any other questions.
OP or anyone else who has them..... |
First off, thank you very much for your reply. That makes perfect sense. It leads me to more questions.
When I was interviewed for this job, (we'll use the numbers from above for this- again totally random) I told them I was making $70,000 salary at my last job and wanted to make that here. What they did was structure my pay in a weird way: My salary goes down while my commissions % goes up. It gives me a chance to build my sales territory.
Basically (these numbers are mathimatically incorrect), but to give you an idea of what they did:
$5000.00 salary, 2% Commissions First month = $5833.34 ($70,000/yr)
$4500.00 salary, 4% Commissions Second Month = $5833.34 ($70,000/yr)
$4000.00 salary, 6% Commissions 3rd Month = $5833.34 ($70,000/yr)
So by the end of the year, I'm actually paid $60,000 in salary, and $10,000 in comissions. (Again, look at the concept not the numbers)
The next year I'll only be at $50,000 and $20,000 in comissions. The third year I'll be at $40,000 in salary and $30,000 in comissions.
Am I basically screwed to get approved with this crazy schedule?