Income clarification?

[Anonymous]

We are still getting ready to apply for preapprovals, so I don't have a lender to ask this question, but what do they consider your income? Example: Salaries amounted to $92,xxx, we deduct mortgage & student loan interest, 401k & FSA contributions, & standard deduction amount for our five children and we are down to about $49k. Is this something that will have a big impact on our ability to be approved for approx $200k? Thank you in advance!

[Anonymous]

If you are a regular employee (as in not self employed), they go off of your gross income, so $92,xxx.

[Anonymous]

Thanks so much for the quick response! Not self-employed so that is great to know!

[DallasLoanGuy]

we will back out of your income things like un-reimbursed job expenses or other losses. Not stuff that you described here.

[Anonymous]

Wonderful! I was a little concerned that we were going to have completely rethink our budget!

[frugalQ]

@dallas,

When you say Unreimbursed job expenses, do things like cable and phone expenses count....for people who are W2 employess but work from home?