Understanding My Income
Your income is one of the most important factors mortgage lenders will use to determine whether you can qualify for a mortgage. Income refers to the amount of money that you bring home from any source on a monthly basis. Mortgage lenders will consider your income in determining how much they believe you can afford to pay back.
The higher the income, the higher the mortgage loan you can typically qualify for, depending on related factors. Needless to say having steady income helps and different mortgage lenders count income from commissions, bonus or salaries in different ways. Check with your agent or lender for more details.
Also, there are several things not to do when you are in the process of getting ready to apply for a loan and waiting for final approval- to avoid these costly pitfalls, see 8 Ways to Kill My Loan Approval and Applying for a Mortgage Loan.
If you are paying for your home with all cash you will simply need to provide proof of funds necessary to close. This will be in the form of a bank statement verifying your account has the full dollar amount needed to purchase the home plus customary buyer closing costs. See Typical Buyer Closing Costs.
Want more homebuying advice? Nestiny is a great place for homebuyer education and to help you gauge how ready you are to buy a home. Journey Homeward allows you to enter all of your wants and needs while the True Affordability Tool will break down your budget, showing what you can comfortably afford. You will also receive a free Ready Report that is personalized based upon the information that you entered. This report will give you a vital head start in the home buying journey, saving you valuable time and money.