Can previously low wages hurt my chances of an approved home loan?

Some quick stats about me.

  • Received a pre-approval for $280,000
  • Credit Score: 808
  • Current Salary: $63,500
  • Job: Junior Software Engineer

My main concern here is regarding the eventual income verification step of the final loan approval process.

I am very new in my career field and have worked as a Software Engineer for less than a year (9 months). Prior to that I have worked very low paying retail jobs while learning to code.

So my wages for the last two years were:

  • 2017: $22,360
  • 2016: $30,500

So despite my current pay stubs reflecting my current salary of $63,500, will the last two years W-2s impact my chance at getting a loan approved?

One thought on “Can previously low wages hurt my chances of an approved home loan?

  1. Ironluca

    Depending on the lender’s criteria to evaluate prospective borrowers, one parameter in general is job stability, which in your case is 9 months, a slightly low figure. However, most probably it has been taken into consideration by the institution at the pre-approval stage, which also would have taken into consideration your current salary and EMI payout (Equated Monthly Installment) for the loan and that the EMI does not exceed a certain percentage of your take home (depending of course the established norms and regulations). So, the income verification is to ascertain that you get what you have declared; your earlier salary will have no impact on the loan limit. In other words the lender has already profiled you into a borrower bucket; your earlier salary will not change that bucket.

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