When verifying income, what income must a licensee verify?

In the context of verifying income, it is essential for a licensee to focus on the income that the borrower needs to qualify for a loan, rather than just any preferred income. Verifying "needs" ensures that the borrower can meet the requisite debt-to-income ratio which is crucial in determining their ability to repay the loan.

By confirming the necessary income, the licensee can accurately assess the borrower's financial condition and overall ability to handle mortgage payments. This helps mitigate risks associated with lending and maintains regulatory compliance. It's vital for the licensee to ensure that the income verification process aligns with lending guidelines to safeguard both the borrower and the lender's interests.