I have a buyer whose income varies from year to year due to commissions/bonuses and his wife just graduated from medical school and has been working full-time for 6 months but is paid by 1099 (independent contractor). They have credit scores in the mid to high- 700’s. They also own some rental property which was vacant for the previous tax year. The Lenders are requiring them to file their annual 2010 tax return to prove income and write-offs before a mortgage pre-approval can be given.
So be prepared to have all of your financials and tax returns ready to submit when getting a mortgage pre-approval; what used to take a day or two can become weeks depending upon the availability of your financial statements.
And this could stall your home purchase process because you want your mortgage pre-approval in-hand when you submit an offer on a house that you seek to buy.