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What Kind of Proof of Income Do You Need For Getting a Loan

When applying for a loan, all your documents will be considered for the approval including your proof of income. Lenders often request a proof of income to verify the borrower’s ability to repay the loan debt. Most lenders request proof of income before granting loan requests, especially for a car or home loans. You might also need proof of income when you apply for house rental or an apartment or attempt to qualify for an income-based program. Some lenders or bank institutions may be willing to call your employer to verify your income, but others might prefer hard copies of your income proof.



  • Bank Institutions

Some financial institutions accept bank statements as a proof of income, as they include a record of your direct deposits. However, some organizations may not consider such statements as sufficient proof. If that is the case, you can request a printout of your deposits for the period in question. For example, you may need to provide proof for the previous month, quarter or -month period.

  • Tax Returns

Most of the lenders accept tax returns as a proof of income. If you choose to prove your income this way, then often lenders request tax returns for the past one to three years. Though your tax returns will not show the exact amount of your direct deposits, lenders can typically calculate your income from the gross or adjusted gross income entries. Some lenders also require more official tax document from you, however, in such a case, request an official tax transcript from the IRS to provide the required proof. Tax documents are helpful for independent contractors who receive income from multiple sources or do not receive pay stubs.



  • Checks from Government Agencies

If you need to prove that income has been directly deposited by a government agency, you can use the tax documents, benefit verification letter or pay stubs the organization mails to you. If you haven’t received the pay stubs or documents you need, request the replacement copies by contacting the issuing agency.

  • Paystubs

If you receive your earnings via direct deposit doesn’t necessarily mean that you won’t get a paystub. Direct deposits usually generate paystubs, which your employer may mail or hand to you at the office. Some companies also provide login information to the employees which they can use to access online payment programs and view and print pay stubs. If your employer doesn’t automatically make paystubs available to you, contact your company’s payroll department to request paystubs for the appropriate payment periods.



These are little tips and tricks that will help you get the thumbs up for the loan you’re applying for. Some of these you might have heard of before, and others may be new to you. Either way, all of them are good to keep in mind as you go through the process of applying for a loan.

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