Current-year payroll total used to compare a borrower's income pace with qualifying income.
Year-to-date earnings, often shortened to YTD earnings, are the total wages or earnings shown for the current year up to the date of the pay record.
Year-to-date earnings matter because they help the lender test whether current income supports the amount being used for qualification. A borrower may state a monthly income, but YTD earnings show whether the actual current-year pace lines up.
They also matter for variable income. Overtime, bonus, commission, or seasonal income may need current-year comparison before the lender decides what income is stable enough to count.
Borrowers encounter YTD earnings review when submitting paystubs during preapproval or underwriting. The lender may compare YTD earnings with prior-year W-2 forms, current pay rate, and employer verification.
The term becomes practical when income has changed during the year or when the borrower is relying on non-base pay.
A borrower says they earn $8,000 per month because several recent checks were high. The lender reviews year-to-date earnings and sees that the current-year average is closer to $6,900 per month, so the qualifying income may need to be lower.
Year-to-date earnings differ from a Paystub because YTD earnings are a figure on the paystub, while the paystub is the full payroll record.
They differ from W-2 because a W-2 summarizes a completed prior tax year, while YTD earnings show current-year activity.
They also differ from Qualifying Income because YTD earnings are evidence; qualifying income is the amount the lender accepts for approval.