Income increase

[creditdispair]

So DH and I are on our credit repair journey, have been at it for about 12 months and so far adding a few lines and perfect payment history. Resolved a delinquent student loan (which unfortunately vanished after 9 months instead of reporting paid). And almost finished my education which will result in a triple in my pay when I take my new position. My question is that I have been in my current place of employment for 2 years but only making $14/hr at 24 hours a week and when I graduate I will be making $30/hr for 40hrs a week. How long does this need to occur before the lender will accept my new income? I know the employment history is best at 2 years, which I will continue on at the SAME facility, but my title changes and so does the pay. I will be able to have at least 6 months of payment history with this new pay rate because we still have to save a downpayment.

Will they give me a mortgage based on old pay or new pay?

[DallasLoanGuy]

they will just need one paystub and you are good to go

 

they will verify employment to back it up

[creditdispair]

Yay! So in theory I could app as early as two weeks after my pay increase?

What happens when my hours vary? I am 'eligible' to work 40 hours and can prove by a few pay stubs once at that new position, but I will only be taking a 24 hour spot so there is more option for double overtime. For my first 12 weeks I will be working 40 hour training weeks (making the same pay) and after that my hours will vary, causing my paycheck to vary.

[jtoast]

I don't know what you will be doing for a living but be doublecheck on the "double overtime" part of that. I don't remember the cutoff ( I think its around $27/hour ) but, depending on your job, there is a point where your employer is no longer required to pay you overtime even though they pay you hourly.

 

I know a lot of IT positions are that way. When I was a software packager I was paid $32/hour and worked 50 hour weeks but, due to the high dollar amount of my hourly wage, my employer was not required to pay me any overtime.

Edited November 20, 2009 by jtoast

[clambert1273]

the OT exemption applies to IT positions that are in development or administrators. So, yes developers get hammered. The other exemptions on OT are solely on title and you would have to be extremely high level executive (and they are paid salary anyway). If you do not know about the exemptions for OT, post your job title and description and I can look it up - ya its my job LOL

[creditdispair]

There is no cut off in my field (Nursing), we make an hourly rate and then anything over 8 hours in that same day is paid at 2 times the hourly rate, which they label as 'double overtime.' Most likely I will be taking a 32 hour/week position but will get approximately 8-16 hours of double overtime added to that due to picking up extra shifts. There is a large demand for nurses staying over beyond their shift so I'm quite sure I will be getting it. I was just wondering how long the lender needed to see a consistancy in the overtime before they considered it as your income.

I think that's horrible someone doesn't make at least time and a half when working over 40 hours and not on salary!!! Just because the pay rate is too high?!! Not a great incentive to stay extra!!!

[clambert1273]

There is no cut off in my field (Nursing), we make an hourly rate and then anything over 8 hours in that same day is paid at 2 times the hourly rate, which they label as 'double overtime.' Most likely I will be taking a 32 hour/week position but will get approximately 8-16 hours of double overtime added to that due to picking up extra shifts. There is a large demand for nurses staying over beyond their shift so I'm quite sure I will be getting it. I was just wondering how long the lender needed to see a consistancy in the overtime before they considered it as your income.

I think that's horrible someone doesn't make at least time and a half when working over 40 hours and not on salary!!! Just because the pay rate is too high?!! Not a great incentive to stay extra!!!

 

ahhh don't worry we get other stuff most of the time we get comp time which works out really well around the holidays