When your loan officer is asking what your income is, you want to confidently convey, “Yes, I can afford it!” The first and foremost concern on their minds is your ability to pay off your home loan consistently. They want to know they can get their money back! It’s important to establish a stable income, and communicate yourself as a responsible borrower.

Here’s what you need to get a loan approved:


Have you been at your job for at least two years? Ideally, that’s what a lender would like to see. They will look at more than your income! One of the ways they gauge stability is by looking at your length of employment. The more time you spend at the same job, the more you will communicate stability and consistency.

However, if you have changed jobs in the past two years, there’s no need to worry. Moving from one job to another in the same field can be a sign of progression, especially if it is a better position than before. When lenders see a steady work history, they see reliability and ability to pay off your loan.


You must prove your cash flow. Deliver any kind of document that can prove your income such as bank statements, current year’s income tax returns, expenses, and inventory of any business you run. Lenders want to see you making money.

As someone who’s self-employed, it may be a more difficult to get a loan without a stable monthly paycheck. However, it is not impossible.. As long as your business is earning a profit, you should look good in the eyes of your lender!


Even without a stable income, you could still apply and get approved for a home loan. It may be tempting to find loopholes, but it’s better to be in a position of responsibility to pay it back.  A home loan is a big commitment, and a consistent income will remove the stress of having a loan.

If there is a possibility of layoffs or closing business, hold off on applying for a loan. Gaining certainty around your future income will be beneficial –be confident in your ability to pay it off! You won’t regret this decision when your monthly payment is due, and you can easily pay it with no sweat.

Honesty is the Best Policy

Ultimately, you need to do an honest assessment of your income and your ability to pay off your loan. As an employee, ask yourself: how long have I been at my job? As someone who’s self-employed, check your paperwork to prove a consistent income or profit. Only take on something you can afford! If you need help making an assessment, we can help. Give us a call, and find out whether your current income can achieve your dream home now.

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