What Do I Need To Get My Loan Approved : Proof Of Income

           Navigating Car Loans: Your Guide to Proof of Income    

   

       

Navigating Car Loans: Your Guide to Proof of Income

       

Understanding the world of car loans can be daunting. Questions like "What do I need? Will this work? Why won't they accept this as proof of my income?" are all too common. Hidden Gem Auto is here to simplify the process with a clear list of what you need for proof of income and why it's important.

                

Starting with Proof of Income

       

Proof of income can be both the easiest and the hardest part for many applicants. Whether you're meticulously organized or more laid-back with your finances, we've got you covered.

        

NOTE: These are general guidlines but every situation is different. Be sure to reach out to a Hidden Gem Auto Sales so our team can guide you to the right documents.

                

1. Paycheck Stubs

       

Paycheck stubs are the most straightforward and simple form of income verification a lender will require to approve your loan.

       

Why? Lenders review your total income for the year, also known as your "gross income" or "YTD" income. They'll divide this figure by the number of months in the current year up to today's date, or from your start date at a new job to today.

       

Note: You can use physical check stubs or print them from services like ADP.

                

2. Bank Statements

       

Another method is verifying the actual deposits in your bank account.

       

This approach works well when done correctly. It's calculated similarly to paycheck stubs but typically over a three-month period. You'll use your three most recent bank statements, and the lender will sum the deposits (excluding transfers from other accounts) and average this over three months to determine your current income.

       

This method can be less precise than paycheck stubs, as it may not accurately reflect seasonal fluctuations in income. If you've had a particularly good or bad three months, you might consider providing statements for the entire year to better average your income.

       

Quick Tip: If you're planning to purchase a car soon, make sure to deposit all your income into a bank account to ensure it's considered for your loan.

                

Stay tuned for more insights on navigating car loans and making the process as smooth as possible.