If you have plans to obtain a loan, one should make sure they have relevant documents that act as proof of income. Having proof of income speeds up the process of obtaining a loan, and if you have everything in order, there is a high chance you might be awarded the loan on the same day. Even online lenders who have set up websites require that you offer proof you are employed and in a position to repay the loan. Having the relevant documents in order allows one to obtain the loan fast and on time. This website is dedicated to make sure you know more about loans and to help you manage your finances first; and in this guide, we will focus on documents that act as proof of income when obtaining a loan.
One can use their pay stubs as proof they have a source of income when obtaining a loan. If you are in urgent need of a loan and looking for a way to prove you have an income, make sure you present your pay stubs. This is the major document one should have at hand every time they reach out to a lender, but if you do not have pay stubs, there are other documents you can use. 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 other document one should have when, or one that can act on behalf of pay stubs is a bank statement. There are various ways to prove that you can repay a loan, and one of them involves having a bank statement at hand. Bank statements are easy to obtain as you only need to visit your banking service provider and ask them to print you a copy of your statement. Top lenders ask for bank statements, and thus one should always have this document at hand. Most lenders rely on the bank statement when providing loans.
One can also ask their employers to write them a letter that they are part of their team. A letter that is crafted by your employer to act as proof that you are employed can also be used as proof of income and can be presented to a financial institution when obtaining a loan. Once the letter is ready, you are expected to present it to the lender.
One can also craft documents if they are self-employed. Before you make the document, one should talk to the lender to see what type of documents they accept.