Documents Needed by Lenders in the Application Process

Please see below for general guidelines on what information lenders may need when processing the final loan approval.

Keep in mind that each lender has their own specific requirements based on their underwriting criteria. One might ask for proof of ID, another might ask for ID and address verification, and others may ask for income documentation or employer information in addition to the above.

Some lenders may have a quicker process because they can access information using technology to reduce the level of effort on the customer. Others may have a more manual process.

Proof of ID

Almost every lender will require some sort of proof of identity to confirm they’re able to do business with you. Some examples of documents commonly used for proof of identity during the loan application process are:

You’ll also usually need to provide proof of address, as certain laws change depending on your state of residence. They’ll often also be interested in knowing if you rent or own your home.

Plus if you’ve lived at the same address for two or three or more years, it could be a good indication that you are in a stable situation with limited chance that your finances could change drastically in the near future. Here are a few types of documents lenders may accept as proof of address :

In addition to checking your credit score and history, lenders typically also want to confirm that you can make payments on your loan and likely require some sort of income or employment verification.

Lenders may also evaluate income from the past two to three years to gauge how stable it is. If you are employed by a company, here are some examples of documents lenders may accept as proof of income :

If you are self-employed, here are some documents that you may be able to use to prove your income:

Debt to Income Ratio

Many lenders also review any other debts you owe, such as a mortgage or rent, car loan, student loans, or any credit card debt to determine your debt-to-income-ratio. They’ll want to make sure you have enough cash flow to cover your current debts and the new personal loan.