Document checklist

Loans can be a lot of hard work. The application process is notoriously extensive and detailed. Knowing a little bit about what is typically required will help you streamline the process as much as possible.

There are four broad categories of information that your lender will examine: income, savings, expenses, and credit history. Be prepared to submit documents that verify all of the information you provide on your application. Also, remember that honesty is always the best policy.

With regard to your income, you will need to provide information about your job and salary. More than likely, your lender will contact your employer to make sure that you work there and earn the salary that you listed on your application. Other sources of income (like alimony) will also need to be detailed. Be prepared to provide pay stubs and tax returns from the last year or two.

Information about your savings will also be required. You will need to bring statements describing your savings account, if you have one. You should also bring information about any investments that you have. Account numbers and recent statements are mandatory.

Furthermore, you’ll need to bring information about your expenses. Lenders will be eager to learn what you spend in a typical month. They will also want to know about how you have handled other loans in the past; for that reason, be prepared to provide documentation detailing your credit card accounts, student loans, and even your utilities. Don’t forget to bring contact information for your landlord and bank statements showing the timely payment of your rent.

Your credit history will be viewed in the form of a report from a credit bureau. If you have had any credit problems, be prepared to explain why payments were late, cards were maxed, and so forth.