Skip to main content. Skip to contact links. Skip to navigation. Skip to search. Skip to footer navigation.

Wages and salary needed to buy a house

By: Movement Staff
December 17, 2019

When applying for a home loan, you're going to get asked a lot of questions; some of them, feeling rather intrusive. It can always be weird when someone asks about your wages and salary. But asking for a mortgage is one of those situations where you'll have to be comfortable in letting people in on sensitive info. Curious on why and how it works in the process? That's why we have the ABCs of Mortgage


You need to know about my wages? 👀

Your mortgage lender needs to know how much you make to ensure you can pay back the home loan. Your salary is a huge factor in your loan process and typically, underwriters are looking for consistent earnings. You will probably be asked to submit W2s and pay stubs for the past couple of years of earnings. This helps the underwriter gauge your stability and your likelihood to default on your loan.


What is a VOE?

VOE stands for "Verification of Employment." Often times, this is referring to a physical form filled out by your employer. As you can guess, this is a document that officially verifies you work where you say you do. It more than likely will include additional details, such as length of time you've been employed, salary and bonuses (if applicable). There are times where a verbal verification will suffice with your employer, if certain details aren't needed for your situation.


Is there a salary needed to buy a house?

Is there a specific salary needed to be eligible to buy a home in general? No. Though a minimum amount of wages needed depends on the home you're trying to buy, if you already have one in mind. Bankrate says that it's good to follow the 28/36% rule. As it states, financial advisers suggest this rule to make sure you're not spending more than 28% of your monthly income toward housing, and no more than 36% with your overall debt. With that being said, Movement has a helpful affordability calculator to give you a good idea of what you could afford and be eligible for when applying.


salary needed to buy a house
Options with a self-employed salary needed to buy a house

What if I'm self-employed?

If you're self-employed, it shouldn't be much of a problem for you. We'll just need some additional documentation from you, as you can probably expect. Things you may want to have handy include:

  • Tax returns (minimum of two years)
  • Balance sheets
  • Income statements
  • Business license


Got it – what now?

Talk to a loan officer. They'll be able to go into a deeper dive with you and get you started on the pre-approval process. If pre-approved, you'll know just how much home your wages and salary lets you afford.

Find a nearby loan officer.


Author: Movement Staff

The Market Update is a weekly commentary compiled by a group of Movement Mortgage capital markets analysts with decades of combined expertise in the financial field. Movement's staff helps take complicated economic topics and turn them into a useful, easy to understand analysis to help you make the best decisions for your financial future.