Proof of income and funds are mandatory for property buyers to secure a mortgage and close deals. Traditional earners use pay stubs and tax returns, while self-employed buyers rely on profit-and-loss statements. Cash buyers must present official bank statements proving they have the full purchase amount in liquid cash.
As part of the pre-qualification requirements of our streamlined seamless buying process, prospective buyers are required to demonstrate proof of income before proceeding with even in-person viewing with us.
INCOME VERIFICATION BENEFITS
Sellers and lenders need to know you can afford the home and associated costs. Your Debt-to-Income (DTI) ratio is key. This is the percentage of your monthly income that goes toward paying debts. Lenders calculate it to see if you can safely manage the new mortgage payment. A lower DTI ratio means you have more wiggle room in your budget.
PROOF OF INCOME FOR SALARIED WORKERS
If you work for a company, your lender will verify your steady wages. You typically need to provide:
Pay stubs:
These show your current earnings and year-to-date income. Lenders usually want the last 30 days of pay stubs.
Tax returns:
These verify your overall adjusted gross income, particularly if you earn bonuses or commission.
PROOF OF INCOME FOR REGISTERED BUSINESS OWNERS
Being self-employed can make income proof a bit more complex. Since you don't have pay stubs, lenders use alternative methods to confirm your earnings:
Tax returns: You will usually need your last two years of personal and business tax returns, including all schedules.
Bank statements:
Lenders may review 12 to 24 months of business and personal bank statements to check for steady, consistent deposits.Profit and loss (P&L) statements: This is a financial report that summarizes the revenues, costs, and expenses incurred during a specific period. It is usually prepared by an accountant or the business owner.
PROOF OF INCOME FOR REGISTERED ENTITIES
Proof of Business Registration
Business of Business Turnover above GHs5m/yr
SUPPLEMENTAL INCOME SOURCES
If you have other ways to support your mortgage payments, you must also document them:Rental income: Proved via lease agreements and bank statements showing consistent rent deposits.Investments: Documented with official retirement account statements or stock portfolios.Alimony/child support: Proven with court orders or divorce agreements.
PROOF OF INCOME FOR CASH BUYERS
If you are buying a home with cash, you don't need a mortgage, but you still need to show proof of funds. Sellers want to know you can actually pay for the house.
Acceptable proof includes:Bank letters:
An official letter from your bank verifying the available funds in your account.
Bank statements:
Recent statements showing the total purchase amount. You can cross out personal account numbers to protect your privacy.
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