topic Re: W2s or check stubs? in Auto Loans

W2s or check stubs?

Anonymous — Wed, 02 Dec 2009 16:52:19 GMT

Ill probably be trying to get a car loan in or around may 2010. Will they accept my tax returns to determine my income, or will they want check stubs from this year??

Re: W2s or check stubs?

hawkeye33 — Wed, 02 Dec 2009 17:35:55 GMT

Probably depends on the situation. I don't recall having to provide either when I purchased in August 2008. If they do want to see proof of income, I would assume by May 2010, they would want to see something more recent than your 2009 tax returns.

Re: W2s or check stubs?

llecs — Wed, 02 Dec 2009 18:14:22 GMT

I last app'd for and received a car in 2003, so it has been a while, but I had started a new business, thereby increasing income. They didn't want to see my tax returns, which wouldn't have showed my new income anyway, but insisted on seeing my paystubs and other proof of current income.

Re: W2s or check stubs?

Anonymous — Thu, 03 Dec 2009 04:24:43 GMT

Will vary by lender and your situation. For me, they requested the last two year's tax returns. No request for current income verification, although it's significantly higher than it was last year.

Re: W2s or check stubs?

MattH — Sat, 05 Dec 2009 23:14:50 GMT

@hawkeye33 wrote:
Probably depends on the situation. I don't recall having to provide either when I purchased in August 2008. If they do want to see proof of income, I would assume by May 2010, they would want to see something more recent than your 2009 tax returns.

It does depend on the situation; the only lenders ever to ask for a single scrap of paper beyond the application itself from me or from my wife have been mortgages and student loans. Credit cards, auto loans, retail cards, and a few other things have all been approved based on the application form and of course the credit history check. Of course mortgage lenders do verify everything; for them neither pay stubs nor W2 sufficed, they wanted verification directly from the employers.

Re: W2s or check stubs?

Watchmann — Sat, 05 Dec 2009 23:58:07 GMT

@MattH wrote:
It does depend on the situation; the only lenders ever to ask for a single scrap of paper beyond the application itself from me or from my wife have been mortgages and student loans. Credit cards, auto loans, retail cards, and a few other things have all been approved based on the application form and of course the credit history check. Of course mortgage lenders do verify everything; for them neither pay stubs nor W2 sufficed, they wanted verification directly from the employers.

Same for me. Last time I bought a car was in 2006 but there was never any request to provide any further information other than my SSN so they could run a credit check and provide me the loan details. I was in and out of the Finance Mgr's office in under 15 minutes. And the only two credit requests in the last couple of years were instantly approved on the spot. A lot of it depends on your score, length of credit history, and credit already in possession.

Re: W2s or check stubs?

Anonymous — Mon, 07 Dec 2009 06:27:19 GMT

requiring proof of income is lender/credit score specific.

Re: W2s or check stubs?

Anonymous — Mon, 07 Dec 2009 10:47:34 GMT

IME, if they want income proof, it will start with pay stubs and then possibly go to W2 or tax returns, but this is generally for higher dollar amounts and if you have not been at present employer long enough.

But as USMC said, it is lender discretion. They get to determine what satisfies them that you are income qualified. The better your credit, the less docs usually necessary.

Message Edited by txjohn on 12-07-2009 02:47 AM

Re: W2s or check stubs?

Anonymous — Mon, 07 Dec 2009 14:03:20 GMT

@Anonymous wrote:
IME, if they want income proof, it will start with pay stubs and then possibly go to W2 or tax returns, but this is generally for higher dollar amounts and if you have not been at present employer long enough.

But as USMC said, it is lender discretion. They get to determine what satisfies them that you are income qualified. The better your credit, the less docs usually necessary.

Message Edited by txjohn on 12-07-2009 02:47 AM

Usually, unless you are self employed, pay check stubs suffice assuming you are far enough along in the year for them to verify income by multiplying and averaging out your year to date. The caveat: overtime, even if you have gotten OT every week for 10 years it is NOT part of the equation.

W2s and Tax returns are usually required for the self employed, people with bad credit or ATYPICAL credit situations..

Again it is all lender specific and score/credit profile dependent.

Re: W2s or check stubs?

Anonymous — Mon, 07 Dec 2009 15:39:07 GMT

@Anonymous wrote:
@Anonymous wrote:
IME, if they want income proof, it will start with pay stubs and then possibly go to W2 or tax returns, but this is generally for higher dollar amounts and if you have not been at present employer long enough.

But as USMC said, it is lender discretion. They get to determine what satisfies them that you are income qualified. The better your credit, the less docs usually necessary.

Message Edited by txjohn on 12-07-2009 02:47 AM

Usually, unless you are self employed, pay check stubs suffice assuming you are far enough along in the year for them to verify income by multiplying and averaging out your year to date. The caveat: overtime, even if you have gotten OT every week for 10 years it is NOT part of the equation.

W2s and Tax returns are usually required for the self employed, people with bad credit or ATYPICAL credit situations..

Again it is all lender specific and score/credit profile dependent.

Agree with both posts above, but I add still another qualifying factor: your amount of downpayment.

I'm self-employed, yet I haven't had to show W2's or tax returns or paystubs or financial statements for auto loans. The thing is, I normally put at least 25% down, so maybe they figure I've got enough skin in the game that further verification is unnecessary. They know where the car is if the loan goes bad, and they've got plenty of room dollars-wise to recoup their loan to me if the auto needed to be repo'ed and sold at auction.