Using Your Pay Stub to Buy a House

The current state of our economy has left manyinclude Social Security and Medicare taxes as these
people wondering if they will be able to successfullyare mandatory deduction. If you have any state and
apply for a mortgage. In truth banks and mortgagelocal taxes these should also be shown. In many cases
companies are not as willing as they once were topeople have retirement funds including 401K IRAs and
approve loans. Just a couple of years ago it seemedhealth insurance payments which are taken out before
like anyone could get a mortgage, today more bankstaxes. All of these deductions should be shown and
are sitting on repossessed homes that at any time inthen the amount that is left over or your net pay is the
recent history and as long as you still have a goodlast number.
credit score and can provide a copy of your mostWhy Do Banks Need This Information?
recent pay stub document or form showing proof ofIf you are applying for any kind of loan you must be
income, you can still get a mortgage.able to provide the lender with both proof of income
What Your Pay Stub Document or Form Shouldand that you have been on the job for a lengthy
Showperiod of time. Your pay stub record or form shows
As long as you are employed by someone other thanthem how much you actually make in a given pay
yourself you should get a pay stub printed as a formperiod and if you have kept your stubs in a file you will
at the end of each pay period. Next to your paycheckhave proof of job stability.
itself, your paystub is probably the most importantIf you are serious about wanting to buy a house then
piece of paper you are likely to get. This single pieceyou are going to need to provide the bank or finance
of paper will provide proof of how many hours youcompany with proof of your income. Once you have
work each pay period, this includes both regular andproven that you have the income to support a
overtime hours. When added together this figure ismortgage and couple it with a decent credit record
your gross pay for the period.you might be surprised to find that the bank is willing to
Below your gross pay, your pay stub will show everytake a chance and lend you the money to buy your
deduction that has been taken out. These generallydream home.
start with federal income taxes and then go on to