What Lenders Look for When Reviewing Income for a Mortgage Pre-Approval

When people think about getting pre-approved for a mortgage, they often assume it’s mostly about credit. Credit matters, but income is just as important, and sometimes more so.

One of the biggest goals during pre-approval is to understand not just how much you earn, but how stable and usable that income is for a mortgage.

Here’s what we actually look at.

Consistency Matters More Than Perfection

Lenders are not looking for a flawless income history. They are looking for consistency.

That usually means:

• A steady line of work

• Predictable earnings

• A reasonable explanation for any changes

Job changes are common. Raises happen. Careers evolve. None of that is automatically a problem. What matters is whether your income can reasonably be expected to continue.

Employment History Tells a Story

In most cases, lenders want to see a two-year employment history. That does not always mean two years at the same job.

We look at:

• Industry continuity

• Promotions or role changes

• Gaps and how they are explained

A move forward in your career generally works in your favor. Short gaps are often acceptable when there is a clear explanation.

How Different Types of Income Are Viewed

Not all income is treated the same, and that often surprises buyers.

W-2 hourly or salaried income is typically the most straightforward, especially when hours and pay are stable.

Overtime, bonus, and commission income can often be used, but usually requires a history and consistency over time.

Self-employed income is absolutely usable, but it requires more documentation and a deeper review to understand trends and sustainability.

Part-time or secondary income may be counted if it has been earned consistently and is expected to continue.

The key question lenders ask is simple: is this income reliable?

Why Documentation Is So Important

Income is verified, not just stated. That is why we ask for documents like paystubs, W-2s, or tax returns.

This is not about being invasive. It is about making sure the numbers used for your pre-approval will hold up all the way through closing.

The more clearly income is documented up front, the smoother the process tends to be later.

What Can Slow Things Down

Some income situations require extra care, such as:

• Recent job changes

• Variable pay that has not been earned long enough

• Self-employment with declining income

• Large unexplained gaps

None of these automatically stop a loan. They just mean the file needs to be reviewed thoughtfully and early.

That is why a real pre-approval matters.

Why Income Review Happens Early

Taking the time to review income during pre-approval helps prevent surprises once you are under contract.

It allows us to:

• Confirm true buying power

• Structure a realistic payment range

• Avoid last-minute conditions

• Create confidence for buyers, agents, and sellers

This is especially important in 2026, when buyers want clarity and predictability.

The Bottom Line

Income review is not about finding reasons to say no. It is about making sure your approval is solid, realistic, and reliable.

A strong pre-approval starts with understanding how income works, how it is documented, and how it fits into the bigger picture.

If you are thinking about buying and want to understand how your income will be viewed, the best time to talk is before you write an offer.

A little preparation up front makes the entire process feel easier later on.