Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Stacy Himley from Guaranteed Rate. In this episode, Stacy talks about the things buyers can be aware of in regards to their income during the pre-qualification process. You can reach Stacy at 605.605.690.2305 or Stacy.Himley@rate.com Her office is located at 304 4th St Brookings SD, 57006 or on the web at www.Rate.com/StacyHimley
Bonuses/Overtime Pay: How They Affect Pre-Qualification
- All right, here we go, good morning everybody! Shane, here, from the Brookings Home Team Powered by Century 21. I got Stacy here from Guaranteed Rate, this morning. It is 8:15, and it is Monday morning so of course that means Monday morning mortgage tip. So with that being said we'll just get right into it. Stacy, what kind of tip do you have for us today?
- Today I want to talk about things that make a buyer not quite ready. Sometimes that's just the education piece of knowing what works for qualifying what doesn't, things like that. Let's talk about income a little bit. In this community, we have a lot of jobs that have a lot of overtime. Like if you work at any of the manufacturing facilities, construction, any of those types of jobs. Or maybe sometimes you get commission or a bonus. That type of income is usable except you have to have a history. If you're just getting a new job and its an increase, which is awesome, but you go, I'm guaranteed at least 50 hours a week because its so busy and that's just the way its gonna be." You can't always use that 10 hours of overtime for qualifying. Sometimes it can be a compensating factor or something like that but you have to have a history of that. Because really, there's no way to know. Maybe its seasonal, maybe its year round, it just depends on the job. That little bit of overtime, if it was averaged, and if its consistent, can make a difference of what you can qualify for.
- Big time, yeah.
- So, sometimes people are like, "I make more money than that." Well...
- That's great.
- That's what you did.
- That's great, yeah last paycheck you did but this paycheck not so much. If you've been at your job for two or even three years, where there's a history, then we can use that because we've got a history of knowing what your average overtime is per year, per month, per pay period, whatever the case is. Then its usable but, sometimes that's just your little fluff money.
- And maybe you could just use that for when the furnace goes out or the water heater needs replaced.
- That happens when you own a home?
- I know, right? Or when you have to sandbag. Sometimes that's what people are doing now so just a little tip on income and sometimes people are frustrated why we can't use what they think they make.
- Yeah, get that history, you said probably a minimum of two years?
- If it's overtime or a bonus, yep. A lot of times they want a two-year history. Even one year, maybe that was a seasonally high year of overtime or whatever the case is.
- Perfect, well thank you for that tip here this morning. If you do have additional questions for Stacy, feel free to reach out to her. Again, all of her information on the top, on the bottom, on the sides, wherever your device allows you to see that. Please feel free to share or tag anybody else in this video that you think would also benefit. Remember, we're on podcast now, Google, and about four other platforms, so take a listen there if you can't catch us this morning. Or on YouTube, or wherever else I'm throwing this all around here. We're trying to get out...
- You're everywhere.
- Feel free to reach out to us, we'd be happy to answer any questions you have on our next episode which means we will be back next Monday for our next Monday morning mortgage tip. Thanks for watching guys, have a great week. We'll see ya later.
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