How Many Pay Stubs Do You Need to Buy a House?

When applying for a mortgage to purchase a home, verifying your income is a fundamental step. Lenders confirm your ability to consistently repay a substantial loan over many years. The documentation you provide helps lenders assess your financial capacity and determine the loan amount you can responsibly afford.

Standard Income Documentation

Mortgage lenders typically request specific income documents from salaried or hourly employees. Most lenders ask for your two to three most recent pay stubs, generally covering the last 30 to 60 days of employment. If you are paid weekly, this might translate to three or four pay stubs, while bi-weekly or monthly pay schedules usually require two.

In addition to recent pay stubs, lenders commonly require your W-2 forms from the past two years. The W-2 forms provide a comprehensive annual summary of your wages and taxes withheld, offering a broader historical view of your earnings. Alongside these, you will typically need to submit bank statements, often for the last two months, to verify direct deposits and overall cash flow.

Lender Income Assessment

When reviewing your income documentation, lenders primarily focus on your gross income, which is your total earnings before any deductions for taxes or benefits. This provides a standardized measure of your earning capacity, regardless of individual deductions. Lenders analyze your income for stability and consistency. They want to ensure that your income is likely to continue for at least three years after the mortgage closes.

Different types of income are assessed based on their predictability. While base salaries are generally straightforward, variable income components like overtime, bonuses, and commissions often require a two-year history to be fully considered for qualification. Lenders typically average these variable earnings over the past 24 months to determine a consistent monthly amount. If there’s a significant decrease in variable income, or if it is not expected to continue, lenders may adjust the qualifying amount accordingly.

Diverse Income Scenarios

For individuals whose income does not solely come from a traditional W-2 salary, different documentation is required. Self-employed borrowers, including freelancers and independent contractors, typically need to provide personal and business tax returns for the past two years. Profit and loss statements and business bank statements are also commonly requested. Lenders generally look for at least two years of stable self-employment income.

Income from multiple jobs is also assessed, requiring pay stubs and W-2s from all employers. For those receiving retirement income, such as pensions or Social Security, documentation like SSA award letters, pension statements, and bank statements are necessary. This income must be stable and expected to continue for at least three years. Similarly, disability benefits require an SSA Award Letter and proof of ongoing payments, with the expectation that benefits will continue for at least three years. Non-taxable income sources, including some disability and retirement benefits, may be “grossed up” by lenders, effectively increasing the amount considered for qualification to account for their tax-exempt status.

Alimony or child support payments can also be counted as qualifying income if they are consistent, documented by a legal agreement (like a divorce decree), and expected to continue for at least three years after the loan closes. Proof of consistent receipt, often for six to twelve months, is usually required. For rental income, lenders typically request tax returns (specifically Schedule E), current lease agreements, and bank statements. Lenders commonly count about 75% of the gross rental income.