Do lenders use your Adjusted gross income or net income?

[Michaela Manco]

I’d like to buy a new house this year. I have a w2 for my full time job and my rents I collect reflected on my tax return. I spent a lot on improvements on a rental this year (hvac system, new flooring) that usually I would have captured on my tax return but I’m worried that the lower AGI is going to affect how much I qualify for for the new house. Will it?