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What Proof Of Income Is Required For A Mortgage

10-27-2014About MortgagesEddie Knoell

You have to prove your income in order to get a home loan, usually by providing the following:

  • 2 most recent months of bank statement copies
  • 2 most recent years of federal tax return paperwork
  • Previous 45 days of pay-stubs from your work

The underwriter will typically only count the income that is net of expenses. Typical expenses would be associated when a borrower files a Schedule C if you are an independent contractor or sole proprietor AND/OR a schedule E if you have a corporation.

How Do You Know How Much You Can Afford?

An example of an easy loan would be if you or your combined income with a spouse was $60,000, you could afford about $200,000 for a new home in Arizona, with about $5,000-$10,000 down.

For Arizona residents, here is a more detailed explanation of showing proof of income in AZ for a new home loan.