How Does A Mortgage Underwriter Verify Income?


Because the amount of money being loaned is substantial, the verification process can be tedious and requires plenty of documentation to get it done.


What are the income requirements when applying for a loan?

When applying for a loan, the question is not about how much income you need to qualify but how much of your income you’ll be spending on your mortgage and other debts. Most lenders practice a rule of thumb that your mortgage payments should not be more than 28% of your gross income. Your DTI or debt to income ratio should also not exceed 36%. 

Some lenders may allow a DTI of 43% as long as you have good credit or if you can afford to place a large down payment. 



To improve the chances for approval, you need to prepare pay stubs for the last two to three months, W2 forms and tax returns for the previous two years, profit and loss statements, and bank statements. They do this to check if your income stated matches the income reported. They also want to verify your employment status with your employer. 



It’s not unusual for the underwriter to come back with questions about your submitted documents, so don’t be alarmed. Respond quickly and submit at once to make the process faster. Underwriters will know your income, so there’s no need to hide any information. Being upfront can go a long way in getting your loan approved.

