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Book graphic How to Buy Your Own HomeTable of ContentsGlossaryAnswer KeyFree Resources

Unit 1 : Lesson 2: Getting money to buy a home

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When you apply for a loan, you will have to provide information about your income. Lenders will want to know your gross annual income. This is your yearly income before taxes and other benefits are taken out. It also includes any other money you make from part-time jobs, overtime, bonuses, interest you earn on your savings, and any other kind
of income you receive regularly.

Your gross income is not the same as your take-home pay. On your paycheck, your gross income is usually the largest amount. Your take-home pay — what you take home after taxes, insurance, and other costs are taken out — is a smaller amount. You can often find that amount in the upper right-hand corner of the pay stub.

You will often find you have to use addition, multiplication, and division to come up with the information you need to fill out housing-related applications. Here are some examples of math problems related to filling in information about your income.

Example 1:
Joe Ramirez had a gross income of $725 twice a month. How much does he earn each month? Hint: Take the gross pay and multiply by 2.

Answer: ______________

Example 2:
Teresa Ramirez made $8,640 annually at her job at Grant’s Grocery. How much did she make each month? Hint: Take the gross annual salary and divide by 12.

Answer: ______________

Now try these problems:

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