To be eligible for a real-estate loan, you must first have been prequalified. The loan officer will review your credit history and work backwards to determine the maximum loan amount you are eligible for. You can also do this by yourself. To begin, you will need to establish your monthly income. It is difficult as lenders only consider incomes that they can verify.
To qualify for a real estate loan, your earnings must be documented. The loan officer will then calculate the loan amount. The type of income you have would determine the loan amount. It is easy to get a job if you have a salary and don't earn any bonuses. Refer to your paycheck and you will multiply the amount by 2.
Image Source: Google
You would also multiply your two-week pay by 26 if you were to get paid every other week. This is because there are 26 paydays per year. Divide this number by 12 to calculate your monthly earnings. Some people do not work throughout the year. In these cases, the rules would be different.
It is easy to calculate your monthly income if you are paid an hourly wage and not over-time. Simply multiply your hourly wage by 40. To calculate your weekly income, you'd need to multiply that 40-hour figure by 40. You will need to convert this weekly figure into a yearly number. To get your monthly salary, divide the yearly figure by 12.
The lenders will instead average the income you have for the past two years and add that amount into your regular income, whether it is hourly, weekly or monthly.