When you apply for a mortgage, your lender will request a vast amount of paperwork from you. This will include looking at your income, assets and existing debt, and your credit-worthiness. While it might seem a bit overwhelming to provide all this documentation, it benefits you in long run so you won’t end up with a monthly mortgage payment that you can’t afford.
What Is a Verification of Income?
When a loan officers asks for a verification of your income, they’re confirming if you have the funds to pay your monthly mortgage payment. You shouldn’t borrow more than you have the means to pay back, and your monthly mortgage payments are no exception.
Mortgage Verification Requirements
In order to confirm your income, a mortgage lender will ask for a few documents:
- Two years of W-2s
- Two years of tax returns (federal and income)
- Two most recent pay stubs
In addition, you should have written history of your most recent checking account statements, current savings account statements, monthly debt obligations, statements from any other loans you may have such as personal, student, auto, and your most recent credit card statements.
How Does Your Lender Verify Your Income for a Mortgage?
Your lender might also contact your employer to confirm your employment. This lets the lender verify that the information on your W-2s and paystubs is recent and accurate.
What Is Verification of Assets?
Just like mortgage lenders will want to verify that you have the means to make your monthly mortgage payments, they’ll also want to ensure that you’ll be able to pay the principal, interest, taxes and insurance in case of a financial emergency.