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How long do i have to wait for a payraise to be considered?

I attempted to buy 2 years ago but my DTI was too high and my maximum approval was only 200k; im still shopping but i am not interested in any of the homes in this area for under 275-350k. 1. So i recieved a raise (hourly) of 45% -- last month and am wondering what that would do for the approval amount? Would it go up by 45% all else equal? I have been employed at the same company for 8 years(big payraise in union contractual increase for senority time). So how long do i have tonwait for the extra income to be considered? 2. I used bank of america in 2010 and they refused to consider overtime for Dti calculation. I have over 4 years of consistant 5-15 hours of overtime per week. Which averages 2000$ per month. Do any lenders consider overtime; especially since i can provide 4 years of paystubs documenting it? 3. Finally; I have a 20% down payment (yay!) that i was able to save by moving back in with my parents. I have not paid rent since i moved back home about 3years. Will this be a problem in underwritting? Will the free housing be considered a gift or something?
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September 21 2012 - US
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Answers (2)

.A pay raise can be counted immediatly and overtime average counted over a two year period. You may want to write an explanation letter for underwriting that you move in with your parents to be able to save for a down payment. The free housing will not be considered a gift.
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September 23 2012
Hi,

There is no seasoning requirement for a pay raise as long as it is your salary/hourly income and not OT or bonus; it can be used to qualify.  Overtime can be used as long as you have received it for at least 2 years.  There are different ways to calculate OT income but a conservative way used my most would be calclated by adding up all the OT for the last 33 months (2010,  2011 and year to date) and dividing by 33.

A rent rating is not necessarily required if you have excellent credit.

Hope this helps,

P
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September 22 2012
 
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