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

Saving for home

Presented by Paystrubmakr.com      By John Wolf and Tom Cullen CPA

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  • Practice physical distancing by avoiding unnecessary travel and staying away from large groups of people.

When applying for a loan, all your documents will be considered for approval including your proof of income. Lenders often request 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 loan. You might also need proof of income when you apply for a 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.


Finance old way

  • Bank Institutions

Some financial institutions accept bank statements as 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 lenders accept tax returns as 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 documents 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, benefits 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 pay stub. 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.


Promissory note presented

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.

If you’re wondering how to make your pay stub, then visit https://paystubmakr.com/.

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Disclaimer: John Wolf and paystubmakr.com are making a total effort to offer accurate, competent, ethical HR management, employer, and workplace advice.  We do not use the words of an attorney, and the content on the site is not given as legal advice. The website has readers from all US states, which all have different laws on these topics. The reader should look for legal advice before taking any action.  The information presented on this website is offered as a general guide only.

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