Facts about Income Documentation... When you agree to document your income for the lender, it means you are going to provide them with the most current pay stubs, bank statements, and last two-year's W-2s. If you are self-employed, you have to provide copies of last two year's tax returns and Profit & Loss Statement. If you want to just state your income the lender will not require you to provide standard explanations of your income, such as pay stubs. This means you don't have to verify your income, but you must state the source of income. With stated income products, generally you have to put down at least 20% of down payment. Usually, your rate is 0.25% higher compared to income documentation. Individuals likely to be interested in a stated income product are self-employed or who write-off a large portion of their income such as contractors, waiters and waitresses.