How does a big raise affect me getting approved for a mortgage loan?
I’m just getting started on the mortgage approval process, and I want to get a bit more info before I speak to someone. My income has been rapidly increasing in the past few years. My 2008 tax return showed an AGI of 30,209. My 2009 return shows 42,300. My 2010 return will show about 68,500. My current salary is 72,000 a year. Am I going to get totally screwed when I try to get preapproved? Are they really going to look at my 2008 and 2009 returns and not consider my current income?
BTW – these raises are all with the same employer, but I’ve moved from a teaching assistant to a professional teaching position. I’ve also earned graduate credits and seniority that it causing me to rise rapidly up my pay scale. It’s a very structured, union-based pay scale, so (barring a layoff) the income is predictable for future years.
How will it affect how much I can borrow? Details?