Skip to Main Content

If you’re a first-time homebuyer, you may be wondering what type of income verification documents you need to provide your loan officer. These documents indicate that you earn enough money to make your monthly payments. The good news is many borrowers can use the same documents they use to file their taxes each year, and in some cases, they may use their tax returns.


What Proof of Income Might a Lender Ask For?

A mortgage lender is looking to establish if you have enough income to pay back the loan you’re applying for. Some of the items they might request include:

  • It is common for a lender to ask for you to provide one or more recent paystubs showing your year-to-date earnings.
  • W-2. If your job issues you a W-2 form at the end of each year, your lender may ask to see this document, which summarizes the amount your employer paid you in the prior year (as well as how much was withheld for taxes).
  • 1099. If you receive Social Security, a pension, or other passive income like company dividends, you will likely receive a 1099 form each tax season. Keep these, as they can be handy when it comes time to apply for your home loan.


How to Show Proof of Income for Self-Employed Individuals

Your lender might ask to see another income verification document or two if you are self-employed, or if you own your own business. These include but are not limited to:

  • 1099. There are different types of 1099 forms that you may receive every tax season, but if you make a significant portion of your income in a freelance capacity (as a real estate agent, freelance writer, or freelance graphic designer, for example), you might receive a 1099. Your loan officer – as well as a Certified Public Accountant (CPA) or other tax professional – can assist you with this item.
  • Your Personal Tax Returns (1040s). If you are self-employed or receive rental income, and you file your business income on your personal returns each year, it’s likely a potential lender will want to see your yearly tax return.
  • Your Business Tax Returns. If your business files taxes as a separate entity, like a Limited Liability Company (LLC), your lender may request to see these as well.


Bear in mind these are just examples of income verification documents that a mortgage lender could ask for. For the best picture of what you specifically will need for your home loan, consult with an expert loan officer from The Federal Savings Bank. You can contact us online or call at 877-788-2520. Your loan officer can help you build a custom plan for achieving your homeownership goals!

Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.

This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.