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. In this guide, one can learn more about the various documents that act as proof of income. 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. 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. A paystub is important and will always act as proof you are employed and depending on your income, one can be able to demand a higher loan limit. Pay stubs are vital but if you do not have them as you are not employed, read more to learn more about other documents you can use. The other document one should have when, or one that can act on behalf of pay stubs 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. Bank statements are easy to obtain, and you only need to print it and provide it to the lender.
The third document one can use as proof they have an income is a letter from your employer. Look for a recommendation letter from your employer if you cannot get your hands on your pay stubs or a bank statement. Your employer will happily write you this letter on request, and once the letter is ready, one should present it to the lender and get the loan.
If you do not have a pay stub because you are employed, one can create documents that will act as proof they are employed. Talk to the lender before you create the document to be sure you understand what they accept to avoid wasting your precious time.