Are you looking to apply for a loan?
If so, you’re probably aware you need documents for proof of income. This is because the institution granting the loan needs to prove that they’ll get a return on their investment.
But you might wonder what documents count as proof of income. If this sounds like you, then read on; we’ve got the answers below!
1. Pay Stubs
You know those slips of paper your employer gives you after every pay period?
These are your best friend when it comes to proving your income! It lets the institution providing the loan see you have a steady influx of money, and they can also get an accurate picture of your ability to pay back the loan.
The self-employed, however, may not receive pay stubs. If this is you, don’t worry! There are actually companies that specialize in generating check stubs for you. These stubs accurately reflect your income.
As a result, they can be an invaluable part of getting a loan.
Make check stubs of your own today!
2. Bank Statements
Your bank account keeps a record of every transaction you complete. Because of this, any money deposited from an employer or client will be documented by your financial institution.
Whenever you need to prove your income, simply print out your bank statement and present it to the institution providing the loan.
3. Creating Your Own Documents For Proof Of Income
If you are self-employed, this is a fantastic option for you.
Self-employed people might struggle more to prove they have the means of paying the loan for which they’re applying. Fortunately, self-employed people are considered their own company.
This means it’s legal for you to create your own documents for proof of income.
The best way to do this is to create an income statement. A solid income statement will include both your earnings and your expenses.
If you can’t already tell, income statements are useful for more than just procuring loans. You can also use them to ascertain whether or not your business is actually making money!
3. Letter From Your Employer
If you work for an employer, you can also ask your supervisor for a letter confirming your employment.
You may then present this letter to the financial institution as proof of employment.
4. Unemployment Proof Of Income
If you’re unemployed, you might be worried about your ability to prove you have enough money to pay back the loan.
You’re not alone, and fortunately, you’re not without options! If you receive your region’s unemployment payouts, you can use these as your proof of income.
If you’ve received severance pay, you can also submit that.
Looking For More Advice?
Now that you know what to use for documents for proof of income, you might want to check out some of our other life advice.
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