The Loan Application: Work History

Your lender will want to see that you have a stable history of employment, and that your salary is enough to cover your expenses. If you have a full-time job, you'll need to supply:

• Pay stubs from the past 1-3 months
• W-2 statements from the past two years
• Tax returns for previous two years

Preferably, you'll have a history of at least two years in the same position. If you've changed jobs recently, the lender will want to see that you've maintained similar job duties within similar industries, and that your salary has remained stable, or better yet, increased.

If you're self-employed, qualifying for a loan can be more complex, even if your credit is good and you have plenty of money set aside for a down payment. You need to gather several additional documents to prove that you have adequate and reliable income. These documents include:

• Signed, dated individual tax returns, with all applicable tax schedules for the most recent two years
• For a corporation, "S" corporation, or partnership: signed copies of Federal business income tax returns for the last two years, with all applicable tax schedules
• Business credit report for corporations and "S" corporations

Before you submit your paperwork to your lender, you can prepare by completing the worksheet issued by Fannie Mae to help lenders determine income and expenses for self-employed loan applicants.