Pay stubs are essential for calculating your debt-to-income ratio (DTI), a crucial financial metric: Income verification: Pay stubs provide evidence of your earnings, essential for lenders assessing your ability to repay loans. DTI calculation: Divide your total monthly debt payments by your gross monthly income to determine your DTI ratio. Lender requirement: Many lenders require pay stubs as part of the loan application process. Accuracy: Ensure pay stubs accurately reflect your income to avoid discrepancies in DTI calculations. Budgeting tool: Reviewing pay stubs helps you understand your financial position and make informed decisions. Financial planning: Tracking income through pay stubs aids in budgeting and debt management strategies. Documentation: Keep pay stubs organized for tax purposes and financial planning. Employment history: Pay stubs provide a record of your work history and income stability, which can affect loan approvals.

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