Mortgage Readiness Starts Before the Application
Get Mortgage-Ready — Before You Apply
Mortgage Readiness Starts Before the Application
Get Mortgage-Ready — Before You Apply
Some questions from you that I've answered on TikTok
Scenario: Got a raise—can the lender use the new higher pay right away?
Jess says: Often yes, if the new rate/hours are documented and expected to continue. Underwriting typically supports the new pay with recent paystubs and, when needed, employer confirmation.
Scenario: New job, higher pay, same industry—will underwriting see it as stable?
Jess says: Not automatically a problem. Same line of work is often viewed as more stable, but underwriting may still verify start date, pay structure, and continuity.
Scenario: Hourly hours vary (28–40). How do lenders calculate qualifying income?
Jess says: When hours fluctuate, underwriting usually relies on a documented trend and year-to-date earnings to estimate a sustainable average, not your best weeks.
Scenario: Mom gifted $5k via Venmo and I transferred it twice—will it still count?
Jess says: It can, but transfers create documentation needs. Underwriting typically wants a clear paper trail and gift documentation so funds can be traced and verified.
Scenario: I saved cash for years—if I deposit it now, can it be used for closing?
Jess says: Cash deposits are difficult because the source isn’t easily verified. Even if it’s yours, underwriting usually prefers traceable funds and may exclude recent cash deposits.
Scenario: My paycheck hits then I transfer it out—will transfers be an issue?
Jess says: Transfers are common. The key is being able to trace the money with statements showing it leaving one account and arriving in the other.
Scenario: Good score but cards are maxed—does that hurt qualifying before payoff?
Jess says: Potentially, yes. High balances can raise utilization and minimum payments, which can affect both the credit profile and the DTI calculation.
Scenario: I disputed a collection last week—can that delay or change underwriting review?
Jess says: It can. Active disputes may trigger additional documentation or delays because the credit report data may not be considered fully verified.