Warming up to the idea of buying? You're in the right place.
Income is one of the three main factors that lenders look at (alongside credit and assets), when determining your mortgage eligibility.
Your income shows us that you’ll consistently have the funds to make your house payments. The number on your paycheck is a big factor, but the consistency and stability of your paycheck are just as important, too.
What we look at (and why)
Your gross monthly income (before taxes)
- Why it matters: It helps us determine how much house you can afford and calculate your debt-to-income ratio (a lower DTI means a better loan application).
Employment history, typically the past two years
- Why it matters: A steady job history will get you two thumbs up from your lender, because it shows you’re committed to a certain line of work (aka: stable). If you’ve changed fields or have gaps in your work history, no need to worry—it’s not a dealbreaker.
Bonus, commission, overtime, or self-employment income
- Why it matters: To paint the best picture of your financial status, we need all the colors (information) you can give us. Consistent funds like this can help you qualify for a larger loan.
Other income sources
- Why it matters: Rental income, alimony/child support (with documentation), Social Security or pension, disability benefits, and trust/annuity income all can factor into your loan.
