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Is It Possible to Get a Mortgage Approval Using Only a Pay Stub

A mortgage is the only way for some of us to become homeowners. We’re not going to argue it’s a means of buying a home. Mortgages are great when you strike a good deal, and remain steady with your payments. These days, the mortgage is a dream for many. You need to apply and be approved to buy the home of your dreams. Drams can be fulfilled. We live in such a world that anything is possible. You only need to work hard. But how hard?

One question regarding mortgages always pops up when you start discussing the subject. Is it possible to get a mortgage approval using only a pay stub? This is a fair question and directed at the center of the matter. It is what we’re going to discuss in the paragraphs below. Are you one of the people who had the same inquiry? When it comes to mortgages most people are troubled by the same issues. This is fine and fair, but for today we are going to try and answer this one in particular. So, if this is what you wanted to know, stay tuned, and keep on reading. The first matter on hand is going to be the pay stubs and a little bit about them.

What is a Pay Stub?

Source: sanfranciscoemploymentlawfirm.com

Most of you know what it is, and have probably received quite a few during your work life. The one thing that might confuse you is that you know about it by another name. pay stub is the same as a paycheck or pay slip. All three are synonyms and refer to the same thing – the proof of your salary. It is used as legal proof of the amount of salary you have received through a certain period. In some states, employers are not bound to hand out pay stubs to their employees, but in most parts, you’ll be receiving them, while in others you’ll receive a different form of your salary confirmation. Its importance lies in the fact that it will hold all the important data regarding yourself and your salary. We’re talking about the data such as your name, address, and social security number, the same data about the employer, the periodical info about your salary, pay rate, and many other things that are vital for getting a mortgage. If you’re not familiar with how a pay stub looks, or you need an example as an employer for any of your employees you can find great ones at paystubs.

Mortgage and Pay Stubs

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The two are quite related, as you’ll see in the next few paragraphs. Above all else, pay stubs to serve as proof of income. When applying for a mortgage the proof of income is everything. If you don’t have a steady income you shouldn’t even apply. This much is logical. With good proof of income-you’re halfway there. We say halfway there, as pay stubs will not be enough on their own. So the answer to the question from above is – no. Only pay stubs will not be enough to land you a mortgage. While this is not the answer you wanted to hear, it’s not the end of the line, so hear us out. The mortgage lenders want one thing – to prove that your income is stable. So, while a few pay stubs won’t do the trick, having proof of steady income with proof of the source from where the money is coming from you might have a chance. Additional work is always needed, and a few more things. If you recently switched jobs, or recently started a business, getting a standard mortgage might not be achievable.

What Else is There?

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As you can see, employment matters and the proof of it matters too. To get a mortgage you need to be employed, and it needs to be steady employment. This is the first thing that the lender is going to look at. So, in addition, to pay stubs, what else do you need for a mortgage? You need to be able to prove that you’ve been employed for over two years. This proof can be brought to the eyes of the lender in the form of a W-2 form, the 1040s, pay stubs, tax returns, or even by the verification of employment directly from your employer.

Getting a mortgage is no small matter, so you are going to be thoroughly checked. This is one of the principal reasons why only pay stubs won’t do the trick. A bank, or whoever is lending you the money for the mortgage will have an insight into your credit score and history. Also, your debt-to-income ratio will play a vital role in getting your hands on a mortgage. It is all combined in a result that will be an estimation on how much you can afford to pay on a given sum counting in the principal debt and the interest rate.

Your employment history matters too. It is not only important that you’ve been employed for two years or more. It also means if you don’t have holes in your resumes. Having a few empty months or years between jobs is not seen as a positive sign by lenders. Even if you paid your debts during those jobless periods, it will still be seen as a minus regarding your mortgage desires.

Bottom Line

As you can see, you’ll be needing much more than a few pay stubs to complete the mortgage deal. It is not anything out of the ordinary, but it still requires time and effort and of course for you to fill out the final decision. We don’t want to give you any false hope, but some lenders could hand you the keys to your new home even based solely on one income and with less than two years of pay stubs. The chances are slim, but to approve or disapprove an application is all up to the lender. In the end, your application could get suspended until you fulfill all the conditions. Even one denial is not the end of the road.

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