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It's commonly used by lenders as a way to verify an applicant's income and financial stability before approving a loan or credit. However, as technology has advanced, it has become easier for fraudsters to create bank statements that appear legitimate.
IMPORTANT: Please note that it is illegal to edit and a bank statement for loan or credit card application purposes.
If you're applying at a financial institution where your income is regularly deposited, they will most likely have what they need, as well. But it's best to assume that you'll need to back up what you listed for income on your application. Very simply, a tax return or paystub will do the trick.
Lenders require a few documents that can serve as proof of your identity and financial information to approve you for a loan. Some of the documents you'll be asked to provide include, copies of your state- or government-issued ID, copies of paystubs, tax returns or bank statements.
Mortgage companies verify employment during the application process by contacting employers and by reviewing relevant documents, such as pay stubs and tax returns.