We will be building using a national builder. I spoke with their preferred lender and explained I need to have 2015 & 2016 income averaged to qualify for the amount we need since my 2015 income more than doubled over 2014 and 2016 is on track to beat 2015. They told me that since the time frame for new construction would be 6-7 months they could pre approve me in Sept/Oct using my 2015 income and looking at my P&L from 2016 to get an idea of what my end of the year income would be for this year. I was told we could start the building process and they would verify everything else and just wait for the beginning of next year to confirm my 2016 income from my tax return.
Just curious to see if this is standard proceedure and if there are any downsides/things to look out for when doing this.
