Thinking about making a big purchase or renting an apartment? Worried you won’t qualify? Most of the time, providing the right income verification documents can help.
The banks won’t allow people to borrow from them if there’s a lack of reliable income. They want to know that when they lend money, there’s a high likelihood they’ll get it back.
If you show them that you have a steady, adequate income, you can build a convincing case for yourself.
So how do you present the banks with the documentation they need? Here are five types of income verification papers you can use.
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1. Income Verification Letter
If you aren’t able to get any other types of documentation, you can always have your employer write a letter for you.
The income verification letter will need to describe your job duties, dates of employment, and how much you are paid hourly or by salary.
You can also ask your employer to add a summary of your annual or monthly income.
2. Paystub
Paystubs are attached to your paychecks. If you are trying to find a rental, paystubs almost always meet the required income verification documents for apartment rental offices.
They’re one of the best ways to verify your income and detail your pay rate, hours worked, and yearly earnings to date. It’s very easy to look at a paystub and figure out your monthly and annual take-home pay.
If you lost paystubs and want to replace them, learn how to make paystubs here.
3. Bank and App Records
Bank records are another way to prove your income, especially if you have a direct deposit set up. If you use a payment app, you can also print out this information to show money entering your account.
Most banks send monthly summaries that detail deposits and payments. If you don’t get paper statements, you should still be able to go online and print them or ask your bank to print them for you.
4. Tax Documents
You can also use tax documents like W2s as income verification documents. Some companies base their sales or rental decisions on an average of what you made over the last few years. If you can’t find actual W2 stubs, old tax returns will also work.
It’s even possible to get income verification from unemployment. Because employment is taxed, all state employment offices have to provide you with a 1099-G to file with your taxes.
5. 1099 Document
Proving your income as a self-employed, freelance, or contract worker can be tricky. Fortunately, you should always receive 1099 documents from all companies that you do work for.
You can use 1099 forms as proof of income documents, as well as your own payment records. Try to provide several years’ worth to the requesting entity, so you can show them an average of your yearly earnings.
Income Verification Documents Are Not So Difficult to Find
Now that you’ve read about all the ways you can provide income verification documents, you should feel less worried. There are multiple bonafide ways to prove your income. If you show the right paperwork, you can win the lenders’ favor, and even overcome less-than-perfect credit.
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