When you're applying for a mortgage or other loan one of the things that you're going to need to do before getting approved is get all of your financial papers in order. Even if you're working with your own bank for the loan they are going to want to see proof of everything right in front of them, from your credit rating to an outstanding bill that you still have to a Toronto architect who did renovations on your last home. One of the documents that they will definitely be asking for is proof of income. Here are some different options that would be acceptable and what you need to do if you're self-employed.
Those working for standard companies like a factory that makes industrial mixers or an advertising firm can usually just stop by the human resources office and ask for a letter as your proof of employment. The will state the number of hours that you work in a week and your pay for those hours. Some lenders might even allow you to just provide a phone number for your workplace so that they can simply call to confirm employment.
If you work fulltime and your paychecks are usually for the same amount time after time, you could also just bring in some examples of your pay stubs. This would be for someone with a fulltime job working on a municipal vehicle or working as a schoolteacher perhaps. If you're employed on a more casual basis this will usually not be sufficient, as a couple of pay stubs is likely not a good representation of your annual income.
Those that are self-employed or work on a freelance or contract basis are going to have to do a little more legwork when it comes to providing proof of employment. Some lending companies will just ask for a copy of your business license and some of the financial history of your business accounts. If you're running a food and beverage marketing firm or a writing business, for example, you might also be able to use your tax documents as proof of income. You should check with your lending company to see what they will be expecting when you come into your mortgage meeting.
While proof of income is going to be one of the most important documents that a lender wants to look at when considering your loan application remember that it is not the only document. You should be prepared with everything from documents from your gold bullion prices stock portfolio to your credit card bills.
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