Whether you’re applying for a mortgage, a car loan, or a business line of credit, lenders want to see that you’re financially stable and capable of repaying what you borrow. Having the right documents ready can make the process smoother—and improve your chances of approval.
Here are the six key financial documents most lenders will ask for:
1. Proof of Identity
Before anything else, lenders need to confirm you are who you say you are. Have at least one government-issued photo ID ready, such as:
- A driver’s license
- A passport
- A state ID
If you’re applying jointly, both applicants will need to provide identification.
2. Proof of Income
Lenders want to see a stable income stream. Depending on your employment type, this may include:
- Recent pay stubs (last 2–3 months)
- W-2 forms from the past 2 years
- 1099 forms if you’re self-employed or a contractor
- Social Security or pension statements, if applicable
Self-employed? You’ll likely also need to provide business income statements or a profit and loss report.
3. Tax Returns
Most lenders request your federal tax returns (usually from the last two years) to verify income and spot any red flags. These offer a more complete picture of your finances than pay stubs alone.
4. Bank Statements
Expect to submit statements from your checking, savings, and other financial accounts for the past 2–3 months. These help lenders:
- Confirm your assets
- Review cash flow
- Check for any large, unexplained deposits or withdrawals
5. Credit Report
While you don’t typically need to provide this yourself, it’s good to check your credit report before applying. Lenders will review your credit history and score to evaluate your reliability. If you spot any errors, dispute them in advance—it could save your application.
6. Debt Information
Lenders want to know what you owe. Be prepared to disclose:
- Current loan balances
- Minimum monthly payments
- Credit card statements
- Any alimony or child support obligations
This helps them calculate your debt-to-income ratio, a key factor in lending decisions.
Need Help Getting Ready?
At Diligent Financial Strategies, we help clients prepare for major financial milestones—from getting loan-ready to organizing long-term financial plans. If you’re feeling overwhelmed, let’s walk through it together. We’ll make sure your paperwork is ready—and your strategy is solid.