How to Prove Your Income for a Mortgage
- 1). Find your tax returns for at least the last two years. This is vital if you are self-employed and have no other proof of income, according to the Self Employed Mortgage website.
- 2). Obtain several months of pay stubs from the current year and any documentation regarding stocks, bonds and other assets that you currently own, advises FSBOAmerica.org. Having pay stubs from a longer period of time is a plus.
- 3). Visit your mortgage lender and submit your paperwork when applying for the mortgage. This may be your bank or an outside mortgage loan specialist, or broker. The financial institution takes into consideration your overall annual income
(if you are self-employed, the two previous tax returns are averaged to determine your yearly income), monthly expenses (including student loan and car payments) and your current credit rating to determine not only the amount that you are capable of borrowing, but the interest rate that you will pay on it, explains the Self Employed Mortgages website.
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