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Johnastr

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Trying to get a mortgage loan and hours got cut. What's important, job stability or higher pay?
Low pay vs. Stability

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Pay vs Stability

Need more information to give you details...

It all depends on how you are paid and what you mean by stability.  Lenders calculate income differently based on the type of pay - Salary or FT hourly pay can be used most everytime (assuming a history in the line of work).  Other income like OT, Bonus, Commission must have a history (typically 2 years) and the calculation is averaged over the most recent 2 years.  So assuming the same line of work - job stability is not as big a factor as pay rate if you are referring to a recent job change in the same line of work.  If by stability you mean haven't had a job and you just started in a field without a history - then this would be a problem.  You need a 2 year history (stability) in the same line of work

Example1: 

A teacher has been working for  ABC ISD for the past 4 years making $40K/yr and just recently took a job with XYZ ISD making $50k/yr.  In this example even though she just started her current job, she has been in the same line of work for 4 years.  The higher pay can be used and this is positive.

Example 2:

A salesperson has been making $1K base plus commision and decides to go salary making $40K/yr...we can use his current salary.   If it were the other way around, we would only be able to use the $1K base because we don't have a 2 year history of his commissions.

Example 3:

A manager at Chili's for 3  years starts working as a receptionist for a Dental office.  We would not be able to use this income so stability would be more important in this example.

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