Reasons for Mortgage Pre-Approval | Income

Part 5 of 5 | Reasons for Mortgage Pre-Approval  See the rest of the series. Reason #1:  Income for Approval Income is key to each home loan approval.  While figuring income seems simple, often it is not.  Underwriters apply several rules to figure your "effective income." Effective income is the income used to qualify someone for a home loan.   In other words, lenders use effective income as the "income" part of your debt to income ratio.  Various rules factor into effective income.  These … [Read more...]