What this document proves for a mortgage file
A pay stub records earnings and deductions for a particular pay period. It can help establish current employment and the pattern of gross pay. It may also show year to date earnings, but that number is only meaningful when you know the period covered and what is included. One strong pay period should not stand in for a careful assessment of sustainable income.
Gross income and the deposit that reaches the bank are different figures. Taxes, benefits and other deductions explain some of that difference. A lender may use gross qualifying income, but the deductions can still identify an obligation or circumstance that requires attention. Read the whole page and keep the source available for the person who will review the file after you.
What brokers check on it
Confirm the borrower name, employer, pay period and payment date. Establish whether the pay schedule and employment described agree with the application. Look at gross pay, base earnings, overtime and year to date totals. If you annualize earnings, state the time period and method rather than treating the calculation as an employer confirmation of annual salary.
Review deductions, including any wage garnishment. A deduction label may need explanation before you know the obligation behind it. Compare the net pay with the payroll deposits on the bank statements, allowing for timing and the pay schedule. Ask for a current employment letter or clarification when the documents leave the rate of pay or employment status unclear.
Common red flags
An annualized income above the T4 may be reasonable if salary changed, but it may also reflect overtime or an unusual pay period. A short year to date period can produce a misleading annual figure. Keep base and variable earnings separate, request the required history and confirm how the lender treats each component before updating the application.
A garnishment is a finding to investigate even if it has not been listed as a debt. Ask for the order or other documentation that explains the amount, reason and remaining obligation. Do not guess the payment or double count a deduction already captured elsewhere. An employer mismatch, missing pay period or unexplained deposit difference also needs a clear answer.
What the AI Underwriter cross checks it against
The AI Underwriter compares current earnings with the application, T4 and NOA, and checks the payroll context against bank statements. It can highlight an annualized figure that does not match historical income or a deduction absent from the application. The broker then traces the finding back to the pay stub rather than relying on a bare warning.
Emily Carter's specimen shows why earnings and deductions belong in the same review. Overtime lifts the annualized figure while a garnishment adds an unresolved question. The supportable income illustration stays with the T4 amount until the lender treatment and history are confirmed. The ratio calculation includes documented credit commitments, but it does not invent an amount for the garnishment.
What the AI does not do
The AI does not approve or decline a file, contact lenders or contact credit bureaus. It does not call the employer or establish the legal terms of a garnishment. The broker reviews every finding, obtains the necessary documents and follows the lender verification requirements. An extracted annualized figure is a working calculation, not a verified salary guarantee.
Keep your income reasoning and deduction questions in the file notes. If the client provides a new employment letter or garnishment details, revisit both the application and the ratios. Explain what changed and preserve the supporting pages. A lender can assess a complete documented story much more easily than a set of numbers that silently changes between versions.
Frequently asked questions
- Can year to date earnings be annualized?
- They can be used for a working calculation when the period and earnings components are clear. Lender acceptance still depends on the income type and required evidence.
- Does a garnishment belong in the review?
- Yes. Obtain the details and determine the obligation and lender treatment. Do not invent a payment from an unclear deduction.
- Why compare pay with bank statements?
- Payroll deposits provide context for the pay stub, timing and employer. Gross pay and net deposits are not the same amount.
- Can the AI verify employment with the employer?
- No. It compares the supplied documents. The broker handles any required employment verification and reviews every finding.