Recent payroll record used to document current earnings during mortgage income review.
A paystub is a recent payroll record that shows a borrower’s current wages, deductions, employer information, and year-to-date earnings.
A paystub matters because it gives the lender current evidence of income. Tax forms may show what the borrower earned last year, but a paystub helps confirm what the borrower is earning now.
It also matters because paystubs often reveal details that affect underwriting, such as overtime, bonus pay, commission income, unpaid leave, garnishments, or deductions that need explanation.
Borrowers usually provide paystubs during preapproval and underwriting. A lender may ask for the most recent paystub, a 30-day set of paystubs, or an updated paystub if the file takes longer than expected.
The paystub is often reviewed with Verification of Employment and Verification of Income so the lender can connect the borrower, employer, income source, and current earnings.
| Paystub detail | Mortgage use |
|---|---|
| Employer and employee name | Confirms whose income is being documented |
| Current-period earnings | Shows recent pay activity |
| Year-to-date earnings | Helps compare current pace with stated income |
| Overtime, bonus, or commission lines | Flags variable income review |
| Deductions or garnishments | May identify obligations or documentation issues |
Underwriters do not usually rely on one pay-period amount in isolation. They compare the pay rate, hours, pay frequency, and year-to-date totals with the application, prior earnings records, and employer verification. A recent raise may explain why current base pay is higher than the year-to-date average, while declining overtime can make the year-to-date pace less reliable for future qualification.
Gross pay is generally more relevant to income analysis than the net deposit reaching the borrower’s bank account. Net pay reflects withholding, insurance, retirement contributions, and other deductions. The lender still reviews those deductions when they reveal a separate debt, garnishment, leave status, or other issue that affects the file.
An underwriter may ask for clarification when the employer name differs from the application, year-to-date earnings do not fit the stated pay rate, variable earnings change sharply, or the paystub shows leave or irregular hours. Missing pages, altered formatting, unreadable fields, or an old pay period can also make a document unusable.
Borrowers should provide complete records generated by the employer or payroll system and avoid annotating or modifying them. If compensation or employment changed, explaining that change early is safer than waiting for the lender to discover the mismatch near closing.
A borrower says their salary is $7,000 per month. The lender reviews the paystub to confirm current base pay and checks year-to-date earnings to see whether the current pay pace supports the qualifying income.
A paystub differs from W-2 because a paystub shows current payroll detail, while a W-2 summarizes prior-year employee wages.
It differs from Year-to-Date Earnings because year-to-date earnings are one number or section on the paystub, not the entire document.
It also differs from Income Documentation, which is the broader category of records used to support income.