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silverw106 · Joined: 14 Apr 2009 Posts: 2 1.56 Dollars($)

do mortgage lenders use gross income or net income to calculate income to qualify their borrower?

savior70 · Posted: Thu Jun 25, 2009 5:40 am Post subject:

Hi

Lenders generally use your gross income to check whether you qualify for a loan. They use your gross income rather than your net income because at the end of the year when you file your taxes, you get deductions based on your gross income. This is why, the lenders think if they use your gross income to calculate your debt t income ratio, it will give them realistic results.

Jessica · Posted: Thu Jun 25, 2009 5:44 am Post subject:

Hi silverw,

Mortgage lenders consider your gross income when they review your financial situation. Even when it comes to calculating the mortgage debt ratio (or debt to income ratio), the borrower's gross monthly income is taken into account. By the way, are you going for a mortgage?

Feel free to discuss your situation in detail. We'll be able to provide you with further suggestions that might work for you.

Regards,

Jessica

dan163 · Joined: 18 Jun 2009 Posts: 8 4.68 Dollars($)

Gross.

litisham · Joined: 23 Jun 2009 Posts: 116 -0.62 Dollars($)

Yes gross income .
Lender refer gross income

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do you use gross income or net income