How do lenders calculate my income?

Lenders use stable, ongoing gross monthly income. Salary is straightforward; hourly, overtime, bonus, and commission are averaged over two years. Self-employed income comes from net profit on tax returns or bank deposits.

They want a track record and likelihood the income continues. Raises help; declining income gets averaged down. We calculate your qualifying income exactly the way underwriting will, so your pre-approval holds up.

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