gross or net income considered for mortgage

Hi Lana! Your Gross Income is used for calculation of Debt to Income Ratios, but you want to make sure that even though you may get "pre-approved", that your ultimate budget can accommodate a mortgage payment. As you know, there are many expenses that are not taken into account when getting a mortgage, which are basically any expenses that are not reported on a credit report and/or that you are legally liable for such as Child Support, Alimony, etc. I hope this helps! Good Luck!

Lenders use gross income... not take home. I am a local MN lender, so visit us at www.Minneapolis-Mortgage.net By the way... This is why voting matters...

The response from "Steve from MA" is correct. Your GROSS INCOME (before taxes etc are taken out) is what is used for "qualifying income". Its important to have a Loan Originator review your last 2 years of income and current paystubs though. With new rules/laws passed by the Federal government... having your "qualifying income" reviewed by a smart LO is more important than ever.

Hi Lana, the first question to ask would be, are you paid W2 wages or 1099 wages? I would assume W2 as that is the standard when employers withhold for taxes but, I have seen this happen on 1099. There is a huge difference between the 2. If you are in fact W2, then your gross wages will be used. If you are on a salary, i.e. $62,400 per year, gross, then the income figure used by the underwriter would be $5200/yr. If you are hourly or have unstable or unique earnings, this gets a lot more complicated. I would love to take a look at your scenario. Feel free to give me a call or shoot me an email. We specialize in home purchases. David Ortega - Satori Mortgage - 952-544-1706 - dortega@satorimortgage.com - www.SatoriMortgage.com

To determine your debt to income ratio we use gross income. I would be happy to answer any other questions you may have. I am located in the twin cities and can be reached at 612-581-3178. Thank you. Jim Peterson. NMLS# 695811

Sorry, $5200/mo.

We will look at what you have and come up with income ratio eligibility. You will be surprised as to what you may qualify for, especially since our rates are very low right now. We are right here in St. Paul, give me a call at your earliest convenience. Thanks!

That's a question many people get confused on as the "net" is what we all live on. However because some people choose to have more taken out of their check for savings, an HSA account, retirement or who knows what, it has been determined that because they are optional deductions, the industry only works with gross pay. I hope this helps. If I can be of further assistance, give me a call. I've been in the industry for 37 years.

Lenders always look at your Gross pay to determine your debt to income ratios (DTI). For conventional financing your combined DEBT plus your new housing payment cannot be more than 45% of your gross monthly pay ($2340) For FHA you can go as high as 50% (2600) total debt including housing payment.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Since your worry is about being able to afford a home and not how much you qualify for you should first start with tidying up your credit so you are able to qualify for the best programs the market has to offer which may be able to help you find something you both love and can afford.Check out my website at www.newhomemortgagemn.com and learn more about how to get the home loan that fits your needs.Jeremy Redlinger(763) 957-0858