The different requirements for a loan are meant to give lenders an idea of your financial status as a borrower.
Pay stubs report your gross and net monthly income. It is the most direct evidence of your financial security; hence, securing a loan with pay stubs is common for most types of loans.
Bank statements record all transactions carried out in your bank or credit account. These transactions include all the money deposited and withdrawn from your account.
Identification, or proof of identification, includes any of the following: – Birth certificate – Certificate of citizenship – Valid driver’s license – U.S. passport – State-issued ID
As long as you are a U.S. citizen or a permanent resident who works and earns income in the United States, then you automatically have to present copies of your tax returns.
As a freelancer, you have full control over your income and finances, given that you are also the one setting the rates for your services.
Similarly to freelancers, small business owners also have the responsibility of tracking all their expenses and earnings.
Most regular employees’ pay stubs are managed by their employers. However, it may not always be the case in states where the pay stub requirements are not that strict.