Can you include overtime pay when you apply for a mortgage?

overtime pay for mortgageDear Ross, I work at an assembly plant, and routinely work 50 to 55 hours a week plus some overtime. My base pay is around $40,000 and last year I made $60,000 with all the overtime. Which number will lenders use when I apply for a mortgage?

Lenders don’t tend to look at the overtime, just the base pay, unless you have at least two years with the same employer and we can present an average. So in your case, if we need to include the overtime, we will, as you have been three years with the same employer.

The same answer applies to people who have a part time job. To include this income, we have to demonstrate at least two years in the same position, and we will take the average annual income from the part time job when qualifying for a mortgage.

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Ross Taylor is a full-time mortgage agent and credit specialist who blogs frequently at ASKROSS

If you have any questions about anything financial, please contact Ross, he answers everyone personally.

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