Process · 5 min read
Does overtime, bonus, or commission count toward my mortgage?
August 13, 2026 · Written by Bill Egan, NMLS 7342
Short answer
It can, when it has a history and it is likely to continue. Most regular loans look at about two years of that extra pay, not last month’s big check. If overtime just started, or commission swings a lot, the underwriter may use little of it or none. Egan Financial Group LLC counts base salary first, then only the extra pay the investor will actually accept.
01
Why this comes up
Your offer letter and last month’s pay stub look strong because of overtime. You budgeted the house on that number. Then someone said they average two years, and the extra pay almost disappeared. You reached out because you do not know which paycheck is the real one for a loan.
02
Where this goes wrong
A pre-approval used one fat check. Underwriting then averages a slow year with a busy year, and the income drops. Your debt-to-income ratio — monthly debts divided by monthly pay — no longer supports the price. You are already under contract on a payment the file will not make. That is how overtime turns into a short appraisal of your budget, not the house.
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What we do about it
We calculate overtime, bonus, and commission the way the investor does, before you write an offer. If two years are not there, we say so. Egan Financial Group LLC will not put a pre-approval letter on a number the underwriter has to take back after you have earnest money in.
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How to get ready
Bring two years of W-2s and your year-to-date pay stubs, not a screenshot of one week. Ask your employer whether overtime is regular or a special project that is ending. Do not quit the extra shift the month you apply if that pay is what makes the loan work. If the extra pay just started, we will use only what we can honestly use.