06/26/2024
Home Mortgage Application/Understanding Proof of Income:
Buying a new home is exciting and one crucial component lenders will analyze is your proof of income. It’s a way for lenders to confirm your ability to repay the loan.
Let’s answer the question, what documents will I need and where to find them!
1. W2-Employers provide W-2 forms at the end of each year. You can also access them via your employer’s payroll service
2. Tax Returns-These documents are filed with the IRS. These should be in your records or copies can be requested from your accountant.
3. Bank Statements-Available through your bank’s online banking portal by requesting copies directly from your bank.
4. Social Security Statements-Accessible via the Social Security Administration’s website or by mail.
5. Profit and Loss Statements-These can be prepared by your accountant or financial software.
6. Pay Stubs-Typically your employer issues these either physically or electronically. If you don’t have copies, your HR department can assist.
7. Employment Verification Letter-Your HR department can typically provide this upon request.
Helpful Tips:
• Keep Copies: Always retain copies of your income documentation for at least a few years.
• Stay Organized: Use digital folder or a filing system to keep track of your documents.
• Update Regularly: Make sure to update your records regularly, especially if your income situation changes.
Ensuring all documentation is accurate and up-to-date can expedite the approval process and enhance your credibility as a borrower.
Call Michelle to discuss.
