When you apply for a mortgage, one of the basic steps in the application process is to prove your income.
Doing so tells the lender a few different things:
- What your DTI ratio is, and whether it is competitive.
- Whether you are making enough money to pay on a home.
- Whether you are employed, and how steady your income is.
But how do you prove your income? What paperwork do you need to show?
If You Are Traditionally Employed
If you are an employee at a company, you can use the traditional full documentation loan process.
Usually, you will have to share your W-2 form with the lender for the most recent year you filed taxes.
The lender also will probably require you to provide your pay stubs for the most recent few pay periods.
While the pay stubs and W-2 are often adequate, there may be situations where you also will have to get your employer to provide a proof of income letter.
While these are the documents you need to provide to verify your income, they are not the only income verification documents involved in the loan process.
At some point, the mortgage company will ask you to sign Form 4056-T.
By signing Form 4056-T, you are giving your “okay” for the IRS to send copies of your federal tax returns to the mortgage company.
The lender will examine two years worth of tax returns. Such is consistent with the two years of steady employment which lenders look for before approving a candidate for a home loan.
If You Are Not a Traditional Employee
So, what happens if you are not an employee? What if you own a business of your own, freelance, invest, or are otherwise making money outside an employment contract?
In that case, you do not have a W-2 form, nor do you have pay stubs. As such, you cannot bring either to a mortgage company. But you still need to prove your income to qualify for a loan.
So, how do you do that? The answer is to apply for a bank statement loan in Florida. You will need 12-24 months of recent bank statements which provide enough information to confirm your income is sufficient and reliable enough that you can afford to buy a home.
Apply Now for a Mortgage in Florida With Premier Lending Corp
Whether you are a traditional employee or you work for yourself, you can buy a home quickly and easily with a mortgage through Premier Lending Corp. To schedule your consultation, please call us at 954-840-8811. We’ll help you apply through the most suitable process for a mortgage which is ideal for your needs.