The standard acceptable forms of documentation for a full documentation conforming mortgage would be last 2 years W-2 statements, 2-4 most recent paycheck stubs, any bank statements and or financial account statements and mortgage payment history.

If you are a self employed borrower whose business tax returns are more reflective of your true income than your personal tax returns, consider applying for a program which allows business tax returns as acceptable forms of income documentation.

Your lender may score your loan through an automated underwriting system. If he or she does, ask for a copy of the feedback. This will tell you what exactly is required as far as income documentation. Sometimes a Verbal verification of employment(voe) is all that is required, and other other times more extensive verification is required.

In some cases, banks accept checking and savings account statements showing periodic direct deposits as proof of income in lieu of payroll software generated paystubs.

Preparing your documentation prior to meeting with your mortgage broker is a good idea. Having all proof of income and assets available is great time saver for all parties involved.

The amount of income documentation that the lender requires is dependent on your loan product. The standards range from full documentation to no documentation and even vary between lenders.