Home Owners: calculating mortgage affordability
When banks calculate the amount that you can afford to buy a home with, do they base it off of TC amount or your base salary? Do sign-on bonuses come into play?
Most lenders can count annual bonus and RSU.
They calculated it off of your wages. Sign-up bonuses are a one-time payment and could help explained where you got your down payment, but they should not factor into your wages for figuring out what you can afford. And TC is inclusive of your 401k match and other bumps which do not impact your ability to repay the mortgage.
Generally never seen 401k match as part of TC
Yes, realizing my response was vague and misleading. Creditors only care about your wage earnings.
Some lenders will consider rsu but only if you have been receiving it for at least 2 years
Your w2 salary
Using RSUs for mortgage affordability is asking for trouble.
Base only.
Thank you!