Documents That Act As Proof of Income When Taking a Loan
In case you need to obtain a loan, it’s vital that you look for a reliable lender near you who is willing to offer you the loan fast, but before doing so, one should make sure they have relevant documents meant to act as proof they have a source of income. No lender will offer you a loan if you cannot provide proof that you are earning an income. These documents are essential if you are obtaining a loan from a financial institution near you. Having the relevant documents in order allows one to obtain the loan fast and on time. This post will guide you on the most relevant document to have at hand when obtaining a loan.
One should make sure they have their recent pay stubs in order. Most lenders require one to present pay stubs when obtaining high amounts of loan as this is the only way one can prove they are employed. No lending institution will deny you a loan as long as you present a pay stub as this is proof you have a steady source of income and in a position to make periodical repayments. However, if you are not employed, this should not be a concern as there are other documents one can use to prove they have an income. The second document one should present when obtaining a loan is a bank statement. Lenders need proof that you are in a position to repay the loan, and a bank statement will provide this. There are various sources one can obtain a bank statement from, but we urge that you visit your bank and ask for a copy as this is simple and fast. Simply ask your bank to print one for you when you are going to apply for a loan. This is the best solution for individuals who are not employed or ones that cannot trace their paystubs.
The third document one can use as proof they have an income is a letter from your employer. If you are employed, your employer can write you a recommendation letter to act as proof you are part of their team. Once the letter is ready, you are expected to present it to the lender.
Individuals that are self-employed and in need of a loan can create documents that will act as proof of income. Only create a document that your lender will accept and to be sure of this, you can consult them in advance and explain the nature of your business and let them guide you on how to create the document.