Applying for a loan may seem impersonal. However, the application process gets deeply personal. Lenders want to evaluate you as a risk and will dive deep into your personal information. Sometimes, things will get a little uncomfortable. You'll need to provide these critical documents when applying for loans.

Personal Information

Personal information loan requirements are good things. Lenders use these tools to verify your identity and help protect against identity theft. While no tactics are 100 percent fraud-proof, document requirements help you prove your identity and help lenders identify potential identity thieves in the process. Some personal documents you may be asked to provide when applying for loans include the following.

• Driver's licenses or state IDs.
• Military IDs.
• Passports.
• Birth certificates.
• Social Security cards.

On some occasions, you may be asked for additional documentation. As invasive as the process may appear, keep in mind that this is a tool that lenders use to protect you. For non-citizen loan applicants, lenders may accept a valid visa or an Individual Taxpayer Identification Number (ITIN) instead of the above documents. Borrowers are usually required to provide two identifying documents to secure a loan.

Proof of Income

Proof of income may be more challenging to provide in the information age. Once upon a time, you received a paper pay stub with every paycheck. With most people receiving electronic deposits today, the process requires a little more effort on your part. You'll need to print a copy of your most recent pay stub or send an electronic screenshot to lenders. Additional documentation you may need as proof of income includes the following:

• Bank statements.
• Tax returns.
• Copies of your W-2 or 1099.

Most lenders will require proof of income before agreeing to lend you the money. Many will need some information about your debt-to-income ratio as well to ensure that the loan you request doesn't have the potential to overextend you, financially speaking.

Employment Verification

Another document your lender may require is an employment verification document. Some larger companies and organizations offer phone numbers lenders can call when seeking employment verification. It simplifies the process and isn't detrimental to organizational productivity. Additionally, it requires less document storage for employers in today's fast-paced and primarily digital workspaces.

Credit History

While not precisely a document you'll need to provide lenders, your credit history is something almost every lender will examine before extending credit or loaning you money. The idea is to examine your history with credit to draw conclusions about how likely you are to repay the money you borrow. A favorable credit history with on-time payments and responsible credit usage offers a good impression on lenders who are more likely to provide credit to those who have used it wisely.

Fortunately, most lenders can secure these documents in the form of a credit search and do not require you to provide them. However, it's a good idea to keep track of your credit score and know what your credit history reveals to lenders. You can order copies of your credit report once a year without paying a fee. This is also an important step to consider before applying for loans so that you know what your credit report reveals and are not in for an unpleasant surprise. Additionally, knowing this information can help you stay on top of things if you become the target of identity thieves.

Collateral Documentation

Large loans, such as those for homes, boats, RVs, and similar purchases, often require some form of collateral to secure the loan. The lender isn't going to take your word that you do, in fact, own these items and that there are no other lenders who have an interest in them (in other words, that they aren't serving as security on other loans). They will require proof of ownership of the items and identifying documentation so that they can determine the value of these items.

Other Documentation Requirements

There are other documents lenders might require to establish your residence and additional essential information about you before they give you large sums of cash. This includes one or more of the following items:

• Utility bills.
• Leases or rental agreements.
• Proof of insurance.
• Credit card statements.
• Rental history.
• Divorce, child support, alimony, etc. documents.
• Voter registration cards.
• Property tax documents.
• Retirement account and investment information.

The more documents lenders have access to, the more confident they can feel about their decision to lend you money. The key is to ensure that your information is current and that no surprises lurk in your financial disclosures and the documents you provide.