Paystub

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.

Why It Matters

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.

Where It Appears in the Borrower Process

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.

What a Paystub Helps Confirm

Paystub detailMortgage use
Employer and employee nameConfirms whose income is being documented
Current-period earningsShows recent pay activity
Year-to-date earningsHelps compare current pace with stated income
Overtime, bonus, or commission linesFlags variable income review
Deductions or garnishmentsMay identify obligations or documentation issues

Practical Example

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.

How It Differs From Nearby Terms

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.

Knowledge Check

  1. Why does a lender ask for a paystub if tax forms already exist? Because the paystub helps prove current earnings, not just prior-year income.
  2. Is year-to-date earnings the same as the whole paystub? No. Year-to-date earnings are a paystub figure; the paystub contains broader payroll detail.
Revised on Saturday, May 23, 2026