Income is easy for a lender to document and it’s one of the biggest hurdles to overcome when qualifying for a loan. Here are the documents needed:
- Most recent two years of tax returns. The lender will need all pages of both business and personal Federal tax returns
- Most recent two years of W-2s, 1099s etc
- Copy of most recent award letter (if there is pension or social security income)
- Most recent 30 days of paystubs
- Profit and loss statement through most recent quarter (if self-employed)
In order to close on time on a transaction, lenders need to receive these documents as early as possible. Our recommendation is to provide income documentation – and all other documents required – within 24 to 48 hours of initial application.