Nov 1, 2017

One of the first documents your lender will want to see are pay stubs reflecting the most recent 30 days of income.

A pay stub is an attachment to each pay check that describes the details of an employee's pay.  It will list the hours worked during that pay period and the rate of pay.  It will list deductions to pay (federal income taxes, social security tax, Medicare, health insurance, and other deductions).  And it will typically provide year-to-date information in each of these categories.

Example of a Pay Stub

Your loan officer will use your pay stubs to determine your current income.  Your pay stubs will also give the lender clues about how much you work and how you are paid.  Do you work 40 hours every week or do your hours vary?  Are you salaried or hourly?  Does the net amount of your pay check match the deposit on your bank statements?  Do you receive overtime or bonuses in addition to your regular income?  Are there deductions to your pay for things like alimony or child support?

You probably don’t receive a physical pay check.  Most employees have their pay checks direct deposited into their bank accounts.  Therefore, you probably won’t receive a physical pay stub with each check.  But they are still generated.  Check on your company’s HR web site for pay stubs, pay statements, or pay vouchers.  If you’re still not finding them, call your HR representative.

Pay stubs are only applicable for employees.  If you’re self-employed, you won’t have pay stubs.  If you’re retired, we don’t need pay stubs either.