How do lenders calculate my income?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
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.
How income gets calculated
Lenders want stable, provable income. Salaried pay is easy: they use your gross monthly wage. Hourly, bonus, and commission pay get averaged over two years.
Self-employed income comes from your tax returns after write-offs. That net figure is what counts. Knowing this early prevents a nasty surprise later.
Getting a clean number in Florida
Every income type has its own rulebook. We match yours to the program that reads it most favorably. That can mean a bigger approval.
Bring your recent pay records and two years of returns if you are self-employed. We will hand you a clear, defensible income figure.