Anything that you would like counted must have valid documentation. A history of earnings and expectation of future income can be very helpful. The documentation requested may vary among companies and some exceptions may also apply. It is important to tell your lender about all possible income sources to know what does or does not qualify.
What Counts as Debt
Understanding Income To Debt Ratio For Asheville NC Mortgage Pre-approvals
For instance, a lender may allow 28 percent of your income to be used for mortgage payments and 40 percent for total debt. Based on these figures, a borrower making 60,000 per year (5,000 monthly) may be allowed up to a 1,400 per month mortgage payment and 2,000 per month in total debt.
Keep in mind that this is strictly an example and considers only the income versus debt part of the financial analysis. There are additional factors such as credit history and program-specific requirements. It is important to consult with a local loan consultant for further assistance with understanding income to debt ratio for Asheville NC mortgage pre-approvals.