Jump to a section
Mortgage qualifying income generally starts with eligible gross income, not the amount deposited after payroll deductions. A recent raise may help, but the lender has to verify the pay and apply the rules for that income type.
The correction that started the conversation
During a file review, I identified net pay entered where gross pay was needed. I also requested verification of a recent base-pay increase while reevaluating the loan amount. Correcting an input and accepting a raise are separate steps; neither should be assumed complete because a larger number looks plausible.
Identify what the paycheck contains
Fannie Mae distinguishes fixed base income from variable earnings. Its base-income guidance requires support for the qualifying calculation, and its pay-raise provisions do not simply apply to every form of variable income.
Ask the lender to identify salary or guaranteed hours separately from overtime, bonus, commission or fluctuating hours. A higher recent deposit might reflect a reimbursement or an unusual pay period rather than a permanent increase.
If the raise is part of the plan, provide the requested employer confirmation and current pay records. Ask whether the lender has accepted the amount or is still reviewing it.
Use take-home pay for a different question
Gross qualifying income helps answer the lender’s approval question. Take-home pay helps you decide what monthly housing payment fits your life. Payroll deductions, savings goals and ordinary living expenses still matter even when they are not qualifying debts.
I would review both numbers before increasing a purchase target. Ask for the updated qualifying income and payment, then compare that payment with the money you actually have available each month.
A more accurate preapproval is useful. A comfortable payment remains a separate decision you get to make.
Sources and further reading
Talk through your question
Tell us what you are trying to accomplish. Schedule a conversation so we can identify the facts and documents needed for your situation.
Published September 13, 2026. Adapted from an origination discussion. Identifying details are omitted. Unconfirmed outcomes are not presented as completed loans. Program and lender requirements need an individual review. Nick Cunningham, Loan Officer, NMLS #907393. Mortgage services through Golden Bay Mortgage Group.
