April 15, 20263 min read
If you are planning a purchase, understanding this topic before you submit an application can prevent surprises. Mortgage lenders focus on income that is documentable, sustainable and acceptable under their policy. Salary is straightforward, but many other income types can also be considered.
Key points to understand
Here is what matters most:
- Regular salary and hourly income are often verified with employment letters and pay stubs.
- Variable income may require a longer history so the lender can calculate a supportable average.
- Pension, investment, rental and other recurring income can be usable when documentation and policy requirements are met.
- Income that has only recently started or is unlikely to continue may receive reduced or no credit for qualification purposes.
Tell your broker about every income source early so the file can be structured around the right lender.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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