Anticipated bonus / rent 44x income verification issue
Anyone know of bulge banks' policies with providing future bonus information for the purpose of jr bankers coming from undergrad to verify their income (spare advice re: overspending; it's a complicated situation)? IE; at $85k, can do $1,932 monthly rent but with $50k bonus $3,068. For people entering first job, leasing co's require a letter from their future employer stating their income (would they also disclose any anticipated bonus info; that could potentially put them on the hook to pay that someday, so I'm thinking not)
Spend like that bonus number will be $0.
Yep. This is what you have to do. You don't have anything yet.
Best advice I ever got.
You shouldn't be spending more than $1,900 as a first year anyway
No bank is going to put anything about discretionary bonus in writing for a 1st year analyst.
Are you trying to live in a full service building? My friend once said, theres no worse feeling than to receive a bonus and see most of that go into paying off credit cards...
You probably could but they may require more money up front.
I think 40X rent is the more common guideline, and at that point $85000/40 = $2125, which seems like as much as you should spend at this point. If you were going to include bonuses, your signing bonus is guaranteed comp so may be able to add that in to the calculation. I couldn't see it being advisable to spend more than what that allows for, unless you have parents supporting you. If you do have parents supporting you, then you can avoid all of this by having them cosign. Most people you hear of spending well >$2000/mo as an analyst likely have parents cosigning because there's no way a firm would guarantee a given bonus figure in writing.
That said the rigidity of the income guidelines probably depends on the landlord; smaller landlords may be more willing to be flexible than large institutions, but the NYC market is competitive enough that they probably won't feel much pressure to do so.
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