Income you report is what is used. For example, I reported 70k, but overtime could make it higher. I just didn't include it because I wanted my loan to be based on what I can afford regularly versus what I could afford. In the case where they would rarely request paystubs, it would be based off those.
As for what's included, only what's reported to the bureaus and typically rent when asked for it.
@Anonymous wrote:Is overtime calculated in DTI for auto loans? If so do you need to show a history of overtime and if so how long?
Also, is stuff like cable, car insurance, phone and shopping used to calculate DTI?
Most lenders calculate income by total gross year to date amount by time from hire date/beginning of the year to end of pay period. However, From Jan-Mar most lenders do not allow overtime to be added to income calculations. No DTI is calculated using the payments on your credit bureau and your housing payment. If you don't have a housing payment they will add one into the equation.
