How To Verify Income

Question

Chris Mason · Answer

Job offer letter. No harder to forge than it is to forge a paystub. :P

Chris Mason · Answer

Welcome to my world.  It's incredibly frustrating for us, because sometimes we need more detail than the automated service provides, and the Human Resources people (ironically) don't want to interact as humans.

The good news for you is that your local lender is probably already signed up for most, or all, such services. Tenant applicant will have to docusign some forms authorizing it.

Johann Jells · Answer

I had a new experience recently. Called to verify, and they told me they used a service for that, and I needed to register and pay the service!! I told them I would find another tenant other than their employee, and tell the employee why. They relented and confirmed for me.

Michael Robbins · Answer

I ask for one of the following for proof of income:  Job offer letter, last 3 months of bank statements (no business account bank statements), 2 recent pay stubs..

Of course make sure to still run credit.  In your situation I would accept the offer letter.

Mark Gavagan · Answer

Consider having them get an IRS Tax Transcript.

Here’s what is visible on the new tax transcript:

Last four digits of any SSN listed on the transcript: XXX-XX-1234

Last four digits of any EIN listed on the transcript:  XX-XXX1234

Last four digits of any account or telephone number

First four characters of the last name for any individual (first three characters if the last name has only four letters)

First four characters of a business name

First six characters of the street address, including spaces

All money amounts, including wage and income, balance due, interest and penalties

Paul Ronto · Answer

As others said, call his current and future employer as a reference, ask to see an offer letter, ask to see the last 2 months bank statement, or in the case of self-employed, ask to see last year's tax returns or some other documented income statement.

Credit, criminal and eviction reports can go a long way to getting you most of these answers, but some do take some additional digging.

Good luck! Let us know how it goes and if you have any other questions.

Chris Mason · Answer

Some lenders have been known to make company resources available to loyal repeat customers, such as already being signed up for, and paying for, various employment verification services that were previously mentioned.

Johann Jells · Answer

I don't follow. What does a lender have to do with my tenant screening?

How To Verify Income

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