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The background is as follows. We are currently renting and want to buy our first home as we are relocating for a new job. My new job starts 1st June 2013. My current job ends May 31st 2013. My yearly income is going to fluctuate as follows:

March - 91K

April,May - 71K

June - 105K

Upon learning this my lender of choice says there might be a problem in getting me pre-approved based on either the 91K or the 105K. Or to get me pre-approved at all (not clear yet, trying to clarify this point). Now I am looking at the prospect of talking to other lenders and I am thinking that it is in my best interest not to disclose my future salary changes at all? If they are going to consider a decrease in salary as important in the pre-approval process but not an increase, then I am at a clear disadvantage. I am starting to think that I should rent for a period in my new town before moving. Can anyone suggest a possible solution to this conundrum?

  • Can you document your actual pay over the last 1-2 years? Even if it fluctuates quite a bit, many lenders will consider the rolling average over some time period, which would ignore the future change in income. – JAGAnalyst Mar 19 '13 at 21:14
  • I can. My lender was a little finicky but now he is coming around. Should I delete this question due to lack of interest? I am not sure what the policy is around here. – LasEspuelas Mar 20 '13 at 0:10
  • I don't really know enough about your situation to provide a real answer, but I'll set up a bounty for kicks (haven't done one before) and see what happens. In any case you don't need to delete the question, it can remain unanswered. Being a newer board, you might not always get multiple answers within a day or two, and some of the more mature boards you're on have a lot of users so you tend to get feedback very quickly. – JAGAnalyst Mar 20 '13 at 14:44
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Assuming the numbers you gave are forecasted 2013 annual income, you should really use an average and give the lender 1 number, as long as you can provide documentation to back it up. Lenders aren't as sophisticated as considering your monthly income fluctuations into their underwriting algorithm.

If you're not tied down to your existing lender, I highly recommend you to shop around. There isn't an "universal lending requirement". You'll be surprised at how flexible they are. Not as a recommendation to get around the rules, but just finding a lender that'll work with your situation. Try personal finance forums such as FatWallet or Slickdeal to find low-cost lenders: http://goo.gl/vIojT

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    This is what ended up happening. One average salary. As long a I close within 60 days of my first paycheck we should be alright. – LasEspuelas Mar 21 '13 at 17:21

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