YOUR PAY WENT UP BUT YOU DON’T QUALIFY FOR A MORTGAGE?!
- johnathanmcquoid
- Jan 17
- 2 min read
More income doesn’t always mean immediate mortgage approval. Many first-time buyers assume a raise and steady job guarantee financing — but lenders look at far more than just your hourly rate.
Here’s how income, credit, debt, and job history can block mortgage approval 👇
1️⃣ John’s income went up — but his credit score held him back
John earned more money, but his credit score was too low due to unpaid tickets and limited credit history.
✔️ missed payments damage approval
✔️ short credit history limits options
✔️ even small collections cause major issues
A higher income can’t override weak credit in the eyes of lenders.
2️⃣ His savings weren’t enough for down payment + closing costs
John saved 5% down but didn’t know about closing costs.
✔️ legal fees
✔️ land transfer tax
✔️ appraisal costs
Lenders require proof you can cover ALL costs — not just the minimum down payment.
3️⃣ His new car payment destroyed his borrowing power
John’s $450/month car loan removed over $100,000 in mortgage qualification room.
✔️ car loans crush ratios
✔️ lenders calculate strict debt-to-income rules
✔️ every payment impacts approval
That single loan made homeownership temporarily impossible.
4️⃣ His job wasn’t guaranteed full-time hours yet
Lenders want consistent, stable, proven income.
✔️ new job = higher risk
✔️ variable hours don’t count
✔️ lenders often require 2-year average
John’s recent pay increase didn’t help because past income was too low.
💬 Final Thought
Many buyers assume saving a down payment and getting a raise is enough — but credit, debt levels, job history, and closing costs all affect approval. Planning early prevents costly mistakes and wasted time.
If you want to avoid John’s situation, The Frontline Mortgage Group can show you exactly what you qualify for and what steps to take now so you’re fully ready when it’s time to buy.