New to the Live Richer Challenge: Homebuying Edition? Learn more about it HERE.
Need to catch up? Click on the link where you left off and then come back!
Day 1: Homebuying Goals
Day 2: Purchasing Methods
Day 3: Your CapacityDay
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This Week’s Goal: To learn homebuying basics including the various methods of purchasing a home and, if you choose a mortgage, how lenders review your income to determine how much you can afford.
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Day 4: Qualifying Income
Today’s Easy Financial Task: Determine your qualifying income.
How to rock this task:
- Use the worksheet to write down your qualifying income per month.
Welcome to Day 4 of the LRC: Homebuying Edition!
Yesterday, we discussed the documents that lenders review to qualify you for a mortgage. Today, we’re going to take that a step further.
In this task, you will write down each of the types of qualifying income that you have on the Qualifying Income & DTI worksheet. Grab a copy of the worksheets here:
Qualifying Income and DTI Worksheet (Page 1)
Qualifying Income and DTI Worksheet (PAGE 2)
**Don’t worry about Page 2 of the Qualifying Income and DTI Worksheet. We’ll be completing that part tomorrow!
Make sure you’re writing down how much qualifying income you have per month. The types of qualifying income include:
- Income from your full-time job
- Income from commissions*
- Income from your part-time job*
- Income from your own business*
- Income from alimony or child support
- Income from disability or social security
*Remember, this income — commissions, part-time jobs, businesses or side hustles — qualifies if you’ve been steadily earning it over the last two to three years. If not, the lender may not count the income because it’s not seen as stable.
Any income you have that isn’t stable should be written down on your inconsistent income column. This income may become consistent in the next few years. Then, you can bump it over to your qualifying income column.
We’re Talkin’ Gross
When listing your income, include the gross income on this worksheet.
Your gross income is the money you earn before anything is taken out, i.e. taxes. We need the gross income for our task tomorrow, so make sure you write this down!
That’s it for this task!
Leave a comment below or reach out to your accountability partners if you have any questions. Don’t forget to check into the Dream Catchers: LIVE RICHER group as well.
Share what you’ve learned today with your tweeps:
Today I wrote down the income I earn that can help me qualify for a home. Day 4: #LiveRicherChallenge Click To TweetLive richer,
Tiffany
You can reach out to me here:
Twitter: @thebudgetnista
Instagram: @thebudgetnista
Facebook: The Budgetnista
Private Forum: Dream Catchers : LIVE RICHER
Want the LIVE RICHER Challenge: Homebuying Edition in book form? You can find it here: LIVE RICHER Challenge: Homebuying Edition.
P.S. If you haven't already... Get your Challenge Freebies from our Live Richer Challenge: Homebuying Edition coauthor, Netiva Heard.
P.P.S. Have you saved, printed & posted the LRC: Homebuying Edition Calendar yet? It makes for an awesome checklist. Click on the picture, save & print it today.
P.P.P.S. Don’t forget to get your free Live Richer Challenge: Homebuying Edition Starter Kit. Download it HERE.
