Income / Mortgage Qualification Confusion

[kpbella]

Hi Everyone!  Like so many others, long time reader, first time poster.

 

I have maybe a “dumb” question. Hoping someone could help me out.

 

 My annual salary is $45,900 and I received a $4,200 bonus this month. I have been receiving regular yearly (around 10% of my salary) bonuses from my company since 2004 and can provide the documentation regarding it: old w2s, paystubs, tax returns, etc...

 

When I meet with my loan officer on Friday, how does this account into my income? Do they account it as my yearly income or is it divided over the months into my monthly gross income?

Thanks for any help!

~Kristen

[SanDiegoEngineer]

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@kpbella wrote:

Hi Everyone!  Like so many others, long time reader, first time poster.

 

I have maybe a “dumb” question. Hoping someone could help me out.

 

 My annual salary is $45,900 and I received a $4,200 bonus this month. I have been receiving regular yearly (around 10% of my salary) bonuses from my company since 2004 and can provide the documentation regarding it: old w2s, paystubs, tax returns, etc...

 

When I meet with my loan officer on Friday, how does this account into my income? Do they account it as my yearly income or is it divided over the months into my monthly gross income?

Thanks for any help!

~Kristen

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They can take into account the bonus if you have been consistently receiving it.  They usually will average the last couple of years worth of bonuses to determine the amount, and it will be applied to your monthly income for purposes of calculating your DTI ratios, even if it's paid yearly.  That's how the LO did mine anyway.

[kpbella]

That is what I was thinking-thanks for your input!