Proof of income: What is it and why is it important?
If you’re thinking of leasing an apartment, there are several steps you need to take. And proof of income is one of the necessary steps in the confirmation process.
But what does this term actually mean? And how do you know if you have the proper paperwork to confirm your income? Keep reading our comprehensive guide and get all your great questions answered!
What Is Proof of Income
Proof of income shows the leasing officer that you can earn the needed wage within a whole leasing month. For example, if the rent is $500 a month, a leasing officer will ask for proof of income to make sure you make at least two times the rent.
However, depending on the rate of the apartment, and its amenities, the leasing office might be looking for people who make triple the rent.
Proof of Income Examples
Most jobs provide their employees with pay stubs that they make with a paystub creator. This document shows your gross income.
However, sometimes we accidentally discard these paystubs because we don’t think they’re important. But, your proof of income is very important.
Not only can it help you get an apartment, but it can also get you a car, house, and benefits. But don’t worry because there are many acceptable forms to show proof of income!
Acceptable proof of income form could be your bank statements. Especially if you don’t have any recent pay stubs or you’re self-employed. Be aware that many leasing offices will ask for bank statements dating back two or three months.
However, if your salary is commissioned-based, they might ask for a whole year of pay stubs. This will ensure your commission is steady and doesn’t vary too much.
W-2 Earnings Report
A W-2 is a government form that can show proof of income for an apartment! The document is made by your employer and is very reliable.
The document shows all of your wages and declared tips from the fiscal year. However, if you’ve recently received a raise, promotion, or have had higher tips than usual, the W-2 will not show this.
Approved Letter from Your Boss
A letter from your boss is a great way to show proof of income. You can also ask your manager to make a reference letter. These two documents will help the leasing officer know your work ethic and average salary!
However, with this type of proof, the leasing office may verify with your employer that everything is factual. So don’t forget any information. Lastly, make sure this income letter is up-to-date with your current salary.
Get Approved Today
Now you’re all caught up on what is proof of income, you will have a better possibility of getting approved! So get your documents in order and begin apartment hunting!
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