How to Read a Pay Stub

Part of the Video Series How to Organize Income & Assets

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Take control of personal finances! Find out how to read a pay stub completely in this free video on organizing personal finances, income, and assets.

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How to Read a Pay Stub
Hello! My name is Brett Staggs and on behalf of Expert Village, I am here to show you how to organize your income and assets for first time home buyers. The first thing you want to do when buying a first home, is you need to determine your actual income. Now primarily people have just one full time job and you get two pay stubs each month normally and the first thing you want to do is look at your pay stub very closely. It can be kind of deceiving at times. When you are looking at your pay stub, the money that a bank will take into consideration is your gross income. This is your income before they take taxes out, before they take out health insurance and any sort of Federal tax. This is your bulk income and this is what banks will look at. A lot of times first time home buyers will look at their net, which is your income after taxes which is the actual money that gets deposited. But it is nice of the banks that they will look at your gross, they don't take into consideration all these deductions and that is the actual income they are going to use in determining our qualification for first home.

About the Expert

Expert: Brett Staggs has been working in the mortgage industry for the past 6 years. He has worked for a title company, a credit reporting company, and two major banks. Read More