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Documents to Bring When Applying for a Loan

Documents to Bring When Applying for a Loan

When you need money but don’t have enough cash on hand, you naturally start to look for a loan. Getting a loan can be a quick and easy process, or it can be more involved. It depends on a number of factors, from the purpose of the loan to your credit rating and more.

One of the things that all loans have in common, however, is that you’ll need to bring some paperwork with you when you apply. This will vary somewhat, depending on the type of loan you’re hoping to get.

Let’s take a look at some of the most common types of loans out there, as well as the documents you’ll need to bring with you when you apply:

Mortgage

A home loan requires quite a bit from you in terms of paperwork. It’s on the high end in terms of the volume of paperwork you need. You’re going to need to bring all of the following when you apply for a mortgage, or at least during the approval process:

  • Identification (usually a state ID, possibly your social security card)
  • Proof of income
  • Employer contact information
  • Contact information (telephone and address)
  • Most recent tax returns (some lenders may ask for several years’ worth of tax returns)
  • Proof of assets that relate to ability to pay, such as a 401(k) or other investment assets
  • A completed mortgage application
  • Information regarding all of your bank and credit accounts

Chances are your mortgage lender may ask for additional documentation, as well. Remember to keep up to date with mortgage offers.

Auto Loan

Auto loans can be a little bit different. Depending on where you’re getting the auto loan, you may not need to bring much in the way of documentation at all. At a minimum, you’ll probably need to bring:

  • Identification (a state ID will usually do)
  • Proof of income
  • Employer contact information
  • Your contact information

And that’s about it. Some lenders may not require physical proof of income when you apply for the loan; you may be able to simply provide them with your stated income and your employer’s contact information. Really, the amount of documentation an auto lender will ask for has more to do with your credit history than anything else.

Personal Loan

A personal, unsecured loan is a loan you take out without any collateral such as a vehicle or a house. For these types of loans, you’ll probably need quite a bit of documentation, including:

  • Identification (a state ID will usually do)
  • Proof of income
  • Employer contact information
  • Contact information (telephone and address)
  • Most recent tax returns (some lenders may ask for several years’ worth of tax returns)
  • Proof of assets that relate to ability to pay, such as a 401(k) or other investment assets
  • Information regarding all of your bank and credit accounts

Personal loans tend to have higher interest rates than secured loans, as they present a higher risk to the lender.

Car title loan

This is a loan you get by using a vehicle that you own outright as collateral for a cash loan. A car title loan can be a great alternative for someone who can’t get a conventional loan, or who wants to enjoy better rates that usually come with having a secured loan.
Here are the things you’ll need for this type of loan:

  • The physical title of the vehicle with the applicant’s name (the title must not be salvaged or reconstructed)
  • The right type of vehicle (RVs, motorcycles, travel trailers, and commercial vehicles aren’t eligible)
  • A credit history with no recent bankruptcy
  • Proof of residence in the state that the lender does business
  • A verifiable address, phone number, and email address
  • Your driver’s license, registration, and proof of insurance
  • Proof of income (a pay stub, or your last 3 months of bank statements if you’re self-employed)

Here again, check with the lender to see if there are additional items you might need to bring.

Payday loans

These are extremely high-interest, short-term loans. Generally speaking, they’re the worst type of loan you can get, and some states have severely limited their use. For these loans you usually just need:

  • Identification
  • Proof of income
  • A check from a valid bank account

Once the loan is up, the lender typically cashes the check, which is written for the loan amount plus a significant interest charge.

No matter what type of loan you’re trying for, you should talk to the lender ahead of time to make sure you’ve got all of the documentation they’d like you to have.

Image from PTMoney.com

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