Income Requirements

[Anonymous]

I am considering looking for my first home early next year and am trying to gain as much knowledge as possible while I rebuild my credit.

Will the lender consider my annual salary at face value, or will they require an itemized breakdown of my monthly spending/obligations? I am contemplating increasing my 4101k contributions a few percentage points as well as my individual savings deposit, which will impact my take home pay a good bit. Should I wait to do that until after I start the homebuying process or will my take home pay matter to the lender?

Thank you for any help you may be able to offer.

[sports1965]

its the gross pay that matters.

and it only matters to determine how much house u can buy

[DallasLoanGuy]

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@Anonymous wrote:

I am considering looking for my first home early next year and am trying to gain as much knowledge as possible while I rebuild my credit.

Will the lender consider my annual salary at face value, or will they require an itemized breakdown of my monthly spending/obligations? I am contemplating increasing my 4101k contributions a few percentage points as well as my individual savings deposit, which will impact my take home pay a good bit. Should I wait to do that until after I start the homebuying process or will my take home pay matter to the lender?

Thank you for any help you may be able to offer.

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that doesnt matter. we use GROSS before those deductions

[Anonymous]

Beautiful - that's what I was hoping to hear! Thanks a bunch, folks - see you in a year....hopefully.

[Anonymous]

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@Anonymous wrote:

or will they require an itemized breakdown of my monthly spending/obligations?

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Your monthly obligations, or debt, will be used to calculate how much house you qualify for (debt-to-income ratio). The only debts that will be looked at will be loans (student, car, mortgage, personal), minimum payments on all credit cards, and any child support or alimony being paid.

[Anonymous]

Thank you, dp - that helps me understand what to expect. I have never owned a home and it all sounds pretty big and scary, lol. I will likely have a ton of questions while I do my research in the next several months.

Thanks for all of the replies, folks.