New job in the last year. What income will be used for mortgage?

[Marian Henares]

Hello BP friends!

I graduated nursing school in May 2018 and was hired as an RN in July 2018. While in nursing school (3 year program), I worked as an admin assistant for my dad's consulting company. As an RN for the past year, my income has quadrupled compared to what I was making as an admin assistant. What income amount will they use when I go to apply for mortgages? Will they average my income over the last 2 years? Will they disregard the admin assistant income since I was in nursing school during that time?

Thank you in advance for your help.

Sincerely,

[Chris Mason]

Originally posted by @Shaun Weekes:

Originally posted by @Marian Henares:

Hello BP friends!

I graduated nursing school in May 2018 and was hired as an RN in July 2018. While in nursing school (3 year program), I worked as an admin assistant for my dad's consulting company. As an RN for the past year, my income has quadrupled compared to what I was making as an admin assistant. What income amount will they use when I go to apply for mortgages? Will they average my income over the last 2 years? Will they disregard the admin assistant income since I was in nursing school during that time?

Thank you in advance for your help.

Sincerely,

 You will be able to use your current income.  Be prepared to explain you just graduated and have one year on the job after graduation.  The lender will count your education plus the job ( since it's in the same field as your education ) so that you have 2 plus years in the field.

I hope this helps and have a good one.

 Shaun is spot on as always; only thing I'll add is that as a nurse you probably get 50 different types of "bonus" pay. Things like "shift differential" and "whoops you missed your lunch break" as well as just vanilla "overtime" pay.

These "extra" or "bonus" sources of income can't be "counted" until you've rec'd them for two years. For now, only your base salary/wage will be "counted."

This "extra" money can, of course, be saved up and used to bolster your down payment without restriction. You can also use it to buy down the rate ("discount points"). A set amount of money spent buying down the rate will lower your payment about 3x what you'd get from putting more down.