How to Verify Income for a Loan

Money and tax documents

In order to get approved for a personal loan, lenders need to know that you’ll be able to repay it. As such, they’ll want to review various aspects of your financial situation, including your income. Loan applicants will be asked to provide income verification in the form of certain financial documents, including paycheck stubs, bank statements, and more. Learn more about how to verify income for a loan with the team at Xpress Cash, below.

What Documents are Required for Income Verification?

The income verification process is generally very basic across lenders, simply requiring you to provide the requested documents when asked. However, the financial documents each lender requests may vary. When you apply for a loan, be prepared to supply one or more of the following documents:

  • Paycheck Stubs – This is one of the more common forms of income verification as it will provide more information on your employer in addition to how much income you receive in a given period. Depending on the lender, you may be asked to submit a pay stub from the last 30 days.
  • Direct Deposit Bank Statements – These days, many employers offer the convenience of direct deposits. If this is the case and you do not have a paper paycheck stub to submit, you’ll need to submit your direct deposit statements to prove that you have regular income.
  • Payroll Schedule Information – In some situations, such as for contracted or freelance jobs, your payments may be issued irregularly. Your lender might accept a payroll schedule provided by your employer to prove that you have reliable income.
  • Letter from Your Employer – Some lenders will ask you to submit a signed income verification letter from your employer verifying that you work for them and your annual salary.
  • Tax Documents – In many cases, your lender will ask you to provide copies of last year’s tax documents, including:
    • W-2 – Your W-2 will show the lender who you worked for and how much you made in a given year.
    • Tax Returns – If you’re self-employed or you’re a freelancer who works contracted jobs, you’ll more than likely need to submit a copy of your last tax return to confirm the income you listed on your application.

Learn More About Income Verification at Xpress Cash!

Have lingering questions surrounding how to verify income for a loan? Need help looking into no income verification loans? Xpress Cash can help! Our team of professionals is always here to provide answers to your financial questions, so don’t hesitate to contact us or stop by one of our many Michigan locations to get help.