Pay stubs help lenders verify your current employment and determine how much income can be used to qualify for a mortgage.

While your base salary or hourly wage is important, lenders also review other types of earnings that may appear on your pay stubs, including:

• Overtime
• Bonuses
• Commissions
• Shift differentials
• Hazard pay
• Incentive pay
• Other recurring forms of compensation

Pay stubs also help underwriters compare your current income to your W-2s, employment history, and other documentation provided during the loan process. Stability of Income and income variability are a huge part of qualifying your income.

Provide pay stubs that show both year-to-date earnings and year-to-date hours worked. This gives the underwriter a more complete picture of your income and often reduces the need for additional documentation or employer verification.

Even in today’s increasingly automated mortgage environment, current pay stubs remain one of the most important documents lenders use to verify income and ensure your loan meets underwriting requirements.