The lending institution will analyze your income and will accept only figures that can be verified and are claimed on your tax returns. More than one borrower (husband and wife or unrelated buyers) may pool their incomes to qualify for the loan. The usual rule of thumb is that two years’ continuous employment in the same field indicates employment stability. Exceptions are made for recent college graduates or those who have just left the service. Lenders are nervous about those who jump often from one sort of job to another; employment changes that show upward movement within the same field are more acceptable. Bonuses and overtime count toward qualification if your employer will verify them as dependable. Part-time and commission income count if they have been steady for the past year or two. Alimony and child support can be considered as income if you want to claim them, but you must be able to show that they are being paid dependably and are likely to continue for the next five years or so. Older applicants will not be asked their ages, but they will be asked to prove dependable Social Security and pension income if they anticipate retirement within the next few years. Disability income counts if it is permanent. Seasonal income may count if applicants can prove at least a two-year history of such a cycle, and they may even be able to count unemployment insurance in qualifying. The self-employed will be asked to furnish income tax returns for two years past and, where appropriate, audited profit-and-loss statements. Other sources of income might include dividends and interest, and net rental from other properties (leases signed by your tenants may be required). If you will have rental income from the house you are buying (a duplex, for example, with the other side to be rented out), half or even all of the anticipated rent may be counted as further income. |
