When you apply for a loan, there are certain requirements that you need to accomplish. More often than not, proof of income is one of the requirements that you need to provide to be eligible in borrowing money. Otherwise, the lender may not consider granting you the loan that you need. This article lists down some handy tips to help verify your income when you apply for a loan.
Secure Proof of Income from Your Job
One of the primary things that you can do to help verify your income when you apply for a loan is to secure a proof of income document from your job. A pay stub is an example of the document that you can get from your employer to be presented to the lender where you are applying for a loan. The income experts behind mrpaystubs.com/ suggest that you leverage reputable online tools to generate the pay stubs that you need to verify your income for a home, car, or any other personal loan application. These pay stubs will most likely contain details about your employer, as well as the amount of money that you are making within a given time frame.
Just keep in mind to confirm the requirements of the lender because some ask for a pay stub dated within 30 days of the date when you apply. In this way, the lender gets a good insight into your most recent income statement.
Apart from a pay stub, you can also secure a signed letter from your employer, or an employment certificate, as proof of income that you can present to a lender. This should contain the salary that you receive each month, as well as the classification of your job position. This proves to be one of the most concrete proofs of income that you can present to the lender because apart from your salary, it is also signed by the representatives of the company you work for.
If you garner irregular payments because you are working as a freelancer or you hold a contract position, then what you can secure as proof of income in place of a pay stub is a payroll schedule. In this way, you will still be able to provide a piece of evidence to the lender that you have the means to generate sufficient funds to pay back the loan. There are also online templates that will allow you to generate a payroll schedule that conforms to the requirements of the lenders.
Organize Your Tax Documents
Your tax documents are also viable proof of income sources which is why you need to ensure that your tax records are organized. If you are employed, you can secure a copy of your tax document from your accounting department. With this document, a lender will have a good insight into how much you made in a given year, as well as the name of the employer that you are associated with.
In case you are running a business or you are self-employed, you need to ensure that your tax returns are organized. You need to present these documents to the lender because it is through your tax returns that they will be able to verify the income that you have listed in your application.
Collect Bank Statements
Bank statements can also be considered as proof of income. For this reason, make sure to collect them as necessary when you are applying for a loan. If you have direct deposit statements from your employer or your clients, then these payments will show up in the bank statements that you collect. Just organize these records carefully to ensure that all the details that the lender needs appear in the documents.
On the other hand, you can also present statements showing your retirement income, particularly when lenders require you to present proof that you qualify for social security payments. In this case, your bank statements will likely show that you receive money from the social security administration of your government. There is also the option for you to state any supplemental income that you receive from other income sources such as your investments or retirement savings accounts.
To help verify your income when you apply for a loan, make sure that you secure proof of income sources from your job. Alongside this, make sure that you also keep an organized record of your tax documents and bank statements. All these are geared towards ensuring that your income is verified, increasing your chances of acquiring the loan that you need.
By: Nick Williams