How Does Hourly Income Affect My Chances To Get A Home Loan?

For the most part, nurses are paid on an hourly basis with plenty of potential for overtime hours.

Hawaii happens to be one of the country’s highest-paying states for nurses with the Bureau of Labor Statistics finding that the hourly mean wage was $42.42/hr in May 2014.

That’s the second highest in the nation.

One would assume great income would make getting a home loan easier, right?

Not necessarily.

There are a number of factors lenders consider when qualifying someone for a home loan.

These helpful tips, could make moving into the home of your dreams easier.

Credit

We typically begin by looking at your credit score.

Your current credit situation may or may not impact your ability to move forward at the present time.

Your past credit history will impact your score.

If your most recent credit history consists of delinquencies, a bankruptcy, short-sale or a foreclosure then you may need more time to create a more recent history of paying obligations back on time to build a stronger lending score.

Most loan programs have a minimum credit score requirement and that requirement will vary from program to program.

Loan Documentation

When getting preapproved, the lender will request you provide documentation to verify your current income and asset situation along with your employment history.

The usually list consists of , one month’s paystubs, last two most recent months bank statements and your two most recent years federal tax returns and W2’s.

Lenders are looking for consistent income and employment history.

That doesn’t mean you need to be in the same job for the last 2 years, just the same field for two or more years consistently.

The good news is, lenders will count college as part of your employment history.

Consistent Income Stream

Lenders love consistency, that doesn’t mean that variable income is a bad thing.

Just be prepared to provide more documentation or information in order to substantiate your monthly income.

Lenders need to be able verify your qualifying monthly income in order to determine how much payment you can afford.

The amount of payment you can afford will ultimate decide the size of your loan.

If you have an employment contract that obligates your employer to a minimum number of hours and/or you‘re able to show consistent working hours, then we’re in business.

If you want to get a mortgage loan, the best thing to do is to contact a loan officer to discuss your options and the best way for you to proceed.

Written by Stefan Kant

2016-18919 Exp.2/18

This material was prepared by an independent third party. This material contains the current opinions Stefan Kant but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.