shift differential and qualifying for mortgage

Nurses General Nursing

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So here's the deal: I am trying to qualify for a mortgage and would really like to include my shift differential in my annual income, since this obviously would help me qualify for more money. My lender told me that in order to have this money included, they would have to contact HR to do an employment verification. I called HR today to ask if they would include my shift differential when my lender called to confirm my pay rate and hours, and was told that they do not include shift differential when confirming wages with lenders because it's not "a sure thing". I was kind of POed by this because I have been hired at this hospital to work a certain shift, and a certain number of hours. I ALWAYS get shift diff, because I am working what I was contracted for. Anyone out there ever have this problem? I think HR is wrong to not include shift diff when giving lenders income amounts...

Specializes in Med-Surg/Ortho, Telemetry.

When I was looking for a home loan, they would only take my base pay into account. They told me they would only look at my shift differential if I had worked at my job for over a year. At that time, I was only 7-8 months into my job.

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I think this is totally odd unless you've not been there for >1yr.

I am sure you're probably a first home buyer, so please keep in mind what others have said. I didn't come CLOSE to what I was approved for with my hourly amount, and I still only have a few hundred bucks at the end of the month that isn't spent. That said when you move into a house, UNLESS it's brand spanking new, you WILL have costs. My parents were SUPER generous and allowed me to take a 'loan' of sorts. However if you don't have this option, please remember you need to keep at least a few thousand dollars in the bank.

To make a long story short, I started doing math to figure everything out after getting approved for my house and finding out what my payment would be. After being used to paying $300/month b/c of having a roommate to well over double that for a house sent me into panic. I'm not a person to easily freak out about things, but I was to the point where I couldn't sleep at ALL, was having to take 20 minute cat naps on break to prevent myself from nodding every time I sat down, and worst of all I got myself into a quite nasty depression. ... and this is after my parents helped me out. I guess what I'm saying is, make sure you have your ducks in a row. If you're not 10000% sure this is something you are going to be able to afford without that shift differencial, PLEASE rethink your position on the new place. IIRC the government $8k program is over, so there's no real RUSH to get into a house right now other than want. I would suggest saving like crazy, putting more money DOWN, and then you might qualify for more in another years time. The housing market is starting to decline again, so it's not like you're pressed for time ;)

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I just bought a house 3 months ago. My lender would not even consider giving me a loan until I had been with my current employer at least 2 years. They wouldn't budge an inch on that criteria. I was preapproved using 2 years worth of tax returns, 2 months of the most recent bank statements for ALL accounts, and the 2 most recent pay stubs.

And FYI, it took me several months to find a house that I wanted and during that time, some of the criteria for qualifying changed, so be prepared for that possibility.

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My mortgage broker used my w-2 and my last 2 months of pay stubs--this included my shift differentials which were huge because I was working weekend option night shift (almost $10 of shift differentials)--that was the pre-approval package that he sent away for me to qualify for my real mortgage--then I had him bring me back down to reality--and do a mock up because the number that he provided me based on my "shift differential salary" was clearly outrageous, so the mock up included only my base pay, and those were the houses that I actually looked at. I didn't look at anything out of my price range, so that I didn't get house envy--it took me 2 years, 2 realtors and probably over 500 houses before I found the right one, and I'm tickled pink & more importantly VERY comfortable making my mortgage payment. I understand now though that it's becoming harder and harder to get a mortgage, so adding in your differential might give you that little bit extra that you are looking for--but seriously, be careful & if you haven't already, seek out some serious financial advice before buying a house (especially if this is your first), because you don't want to get in over your head--good luck!! House hunting is FUN =)

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As someone pointed out earlier, I am a first time buyer without many options. Every little bit of income helps, since this is going to be the determining factor whether or not I can buy something modest and small, but in a good neighborhood or not. I'm right on the edge, and if I qualify for too little, I won't be able to buy a house at all because I'd only be able to afford a place in scary neighborhoods and I'm not willing to do that. People do make good points though about not wanting to stretch myself, and I guess it is possible that under budget cuts, the hospital could stop differentials, but I haven't heard of that happening before.

I'm just really sick of throwing my money out the window each month with rent and want to start building equity, especially when prices and interest rates are so low. But if they don't accept the differential, then I will just have to accept it though...

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As someone pointed out earlier, I am a first time buyer without many options. Every little bit of income helps, since this is going to be the determining factor whether or not I can buy something modest and small, but in a good neighborhood or not. I'm right on the edge, and if I qualify for too little, I won't be able to buy a house at all because I'd only be able to afford a place in scary neighborhoods and I'm not willing to do that. People do make good points though about not wanting to stretch myself, and I guess it is possible that under budget cuts, the hospital could stop differentials, but I haven't heard of that happening before.

I'm just really sick of throwing my money out the window each month with rent and want to start building equity, especially when prices and interest rates are so low. But if they don't accept the differential, then I will just have to accept it though...

I used to think that too. Although I have other, more compelling reasons for buying a house, I wish I could still rent. When you become a homeowner, there is no end to the things you have to do to maintain a house.

I moved into my house three months ago, and in the first two months I've had to buy a new frige because the practically new one that came with the house quit working and couldn't be fixed. I have to either pay someone to do my lawn work or spend the money on equipment to do it myself. I've had to spend money on an exterminator to get rid of red ants and carpenter ants (just outside, but I didn't want them to get into the house). Plus, I had to spend more money to have someone come out and get a bat out of the basement! Except for the lawn work, I wasn't expecting to have to do any of this stuff, and definitely not all within two months!

I am also expecting to have to cut some trees down and have my shingles replaced within the next year or two. I did know about that stuff before I moved, but it just underscores all of the things that I am now responsible for that I didn't have to worry about when I had a landlord.

Oh, I almost forgot, if my taxes go up, so does my monthly payment! Just some things to think about.

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Renting can be fun! I loved living in those really nice apartments. I was a single mom with just one kid and I made really good money at the time. My apartment had way cooler amenities than even some brand new houses. But now that I'm married with three kids, there are no 4 bedroom apartments available, otherwise, we would be renting.

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Specializes in Nursing Professional Development.

I too, used to think that I was "throwing money away" by renting. Having been a home owner now for 12 years, I'm not so sure. As GM2RN said, there are LOTS of extra expenses you get as a homeowner that renters don't have. Between my mortgage and the other miscellaneous expenses, I am paying almost twice as much per month to own than to rent. And if I lost my job or needed to move, I would have to sell my home before I could do that.

I sometimes wonder, "If I had continued renting ... and taken all the money I have spent on my condo and invested it ... would my net worth be higher or lower than it is now?" I'm not sure what the answer is to that. My best (well-educated) estimate is that it comes out about even. But with renting, I would not be so "tied down" to this home and would have more freedom to leave if necessary.

It's not as clear-cut these days as it used to seem.

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