Profile picture for user4295425

Should I be concerned?- Final Approval

I'm getting extremely stressed, and I hope its for no reason! I'm buying my first home with a FHA loan. My DTI is 9%front end 40% back end... However, the LO isn't taking all of my income into account because last year I didnt make as much as I have this year (raise in January) and its pushed my back end to 51% (also they arent including my $750 living expense I get from my company). They said it would all be noted in the file and I have all my paystubs showing my new income starting this january. I'm afraid of getting denied, and help/advice would be great! Thank you.
  • September 14 2013 - US
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Answers (6)

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Profile picture for Outer Banks N C
Most good loan officers know what they are doing and if a problem comes up they will call and ask questions or work it out internally. I would not worry at this time, if they are a good experienced loan officer they should know what goes and what does not. Stop worrying.
  • September 14 2013
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Profile picture for user4295425
Thank you everyone for the advice. Just got the email/call yesterday that we got the final approval! This process has been such an eye opener, especially as a first time home buyer.
  • September 18 2013
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Many companies can go as high as 56.99% back end, assuming your front end is low like it is. That said, I agree with the other posters. If you are base salaried or hourly, your income is your income and does not have to be averaged.
  • September 17 2013
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If you received a raise in January, unless there is overtime, commission or bonus income that needs to be averaged, they should use 100% of your salaried or hourly income. The $750 allowance you speak of may or may not be eligible to be counted.
  • September 17 2013
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Although I am sure that your loan officer is experienced, it may not be completely correct to use your old or an average of your income in this case, unless you're self employed. If you are a W2'd employee with no commission income, the current income should be the income that is used. I cannot imagine that your Loan officer would be steering you wrong, but if you're not a commissioned or self employed person, your current income is what matters. At Bridgeview, this is how we would work up your income. 
  • September 16 2013
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You have to understand that lenders are actually understanding. That want you to get the loan and they will try to make sure that you do. The most you can do is that roll with it and see what your lender says. Your lender will know what to do so trust them.

If you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps and good luck!
  • September 16 2013
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