Real-world examples of common requirements for loan applications

When lenders review a loan request, they’re really asking three questions: Can you pay? Will you pay? And if you don’t, what can they recover? The best examples of common requirements for loan applications all map back to those questions.

Across most consumer and small business loans, examples include:

• Identity and legal status documents
• Proof of income and employment
• Evidence of assets and savings
• Details about existing debts
• Credit history and credit score authorization
• Information about the purpose of the loan
• Collateral documentation (for secured loans)
• Signatures and legal disclosures

Different lenders emphasize different pieces, but the underlying categories barely change. What does change in 2024–2025 is how you provide them: more digital uploads, open‑banking style access to your accounts, and faster automated checks.

Identity and legal status: the first examples lenders look at

Most lenders start with a simple question: Are you really you? Before they even look at your income, they’ll ask for concrete proof of identity and legal status. Common real examples of requirements at this stage include:

• A government‑issued photo ID, such as a driver’s license or passport
• Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
• Proof of address, like a recent utility bill, lease agreement, or bank statement

For U.S. lenders, this is partly about fraud prevention and partly about legal compliance. Banks have to follow Know Your Customer (KYC) and anti‑money‑laundering rules. The Federal Financial Institutions Examination Council (FFIEC) and the Consumer Financial Protection Bureau (CFPB) both publish guidance on identity verification and fair lending practices.

If you’re not a U.S. citizen, additional examples of common requirements for loan applications may include:

• A valid visa or green card
• Employment authorization documents
• Proof of lawful permanent residence

Lenders will often copy or scan these documents and store them with your application. Online lenders might rely on photo uploads plus electronic database checks, but the underlying requirements are the same.

Income and employment: the most common proof lenders want

Income documentation is where applications rise or fall. Lenders want to see stable, verifiable income that can support your monthly payments. Here are real examples of common requirements for loan applications by type of borrower.

W‑2 employees

If you’re a salaried or hourly employee, examples include:

• Recent pay stubs, usually from the last 30–60 days
• W‑2 forms from the last one or two tax years
• Employer contact information for verbal verification

A bank reviewing a $20,000 auto loan might ask for your last two pay stubs and last year’s W‑2. They’ll plug that into a debt‑to‑income (DTI) calculation to see what percentage of your gross monthly income is already spoken for by other debts.

Gig workers and self‑employed borrowers

For freelancers, contractors, and small business owners, the burden is heavier because there’s no single employer to vouch for your paycheck. In this group, examples of common requirements for loan applications often include:

• Personal tax returns (Form 1040) for the last two years, with all schedules
• Business tax returns (e.g., Schedule C, Form 1120, or 1065)
• Year‑to‑date profit and loss (P&L) statements
• 3–12 months of business bank statements

Many mortgage lenders, following guidelines similar to those used by Fannie Mae and Freddie Mac, will average two years of self‑employment income. If your income is dropping year over year, they may use the lower figure.

For details on how lenders interpret tax returns and income, the Consumer Financial Protection Bureau (CFPB) provides borrower‑facing resources on mortgages and ability‑to‑repay standards: https://www.consumerfinance.gov

Bank statements and assets: showing you have a cushion

Beyond income, lenders want to see that you have some financial buffer. Real examples of common requirements for loan applications in this category include:

• Recent bank statements (typically 2–3 months) for checking and savings accounts
• Investment account statements (brokerage, retirement accounts) if you’re using them as reserves
• Proof of large deposits, such as a gift letter for down payments

For a mortgage, a lender might require two months of bank statements to verify that your down payment funds are seasoned (not borrowed last week on a credit card). For a personal loan, an online lender might connect to your bank electronically, scan your transaction history, and assess your cash‑flow stability using automated underwriting.

In 2024–2025, more lenders use cash‑flow underwriting and open‑banking APIs. That means instead of uploading PDFs, you may grant read‑only access to your bank accounts so the lender can analyze income and spending patterns. The requirements haven’t disappeared — they’ve just shifted from paper to data feeds.

Credit history and score: how lenders measure risk

No discussion of examples of common requirements for loan applications is complete without talking about credit. Lenders almost always:

• Pull at least one credit report from Equifax, Experian, or TransUnion
• Obtain your credit score (FICO, VantageScore, or a proprietary model)
• Ask for your authorization to do a hard inquiry

Your credit file shows payment history, outstanding balances, credit utilization, and derogatory marks like collections or bankruptcies. The Federal Trade Commission (FTC) and CFPB explain your rights under the Fair Credit Reporting Act and how to get free copies of your reports at https://www.annualcreditreport.com.

Some fintech lenders now use alternative data — such as rental payment history or utility bills — especially for borrowers with thin credit files. But even in those cases, the classic example of a common requirement is still a credit report plus your consent for a hard pull.

If your credit history is limited or damaged, lenders may respond by:

• Lowering the loan amount
• Raising the interest rate
• Requiring a co‑signer or co‑borrower
• Asking for more documentation of income or assets

Loan purpose and terms: why you want the money matters

Lenders also care what you’re doing with the funds. The examples of common requirements for loan applications here are more narrative than documentary, but they still matter.

For a personal loan, the application may ask whether the money is for debt consolidation, medical expenses, home improvement, or another purpose. Some lenders won’t finance certain uses (like college tuition or speculative investments), so your answer can directly affect approval.

For an auto loan, you’ll typically need:

• The vehicle identification number (VIN)
• Purchase agreement or bill of sale
• Dealer information and sales price

For a mortgage, expect a detailed breakdown of the property and transaction:

• Signed purchase contract
• Property address and legal description

These are all standard examples of common requirements for loan applications because they help lenders assess risk, collateral value, and regulatory obligations.

Collateral and security: when your assets back the loan

Secured loans are backed by collateral — a house, car, or other asset the lender can claim if you default. In these cases, the best examples of common requirements for loan applications relate to proving what the collateral is worth and that you actually own it.

For auto loans, examples include:

• Vehicle title or manufacturer’s certificate of origin
• Proof of auto insurance meeting lender minimums
• Odometer disclosure and condition reports for used cars

For mortgages and home equity loans, examples include:

• Property appraisal by a licensed appraiser
• Title report and title insurance
• Homeowners insurance declarations page
• Flood certification if the property is in a flood zone

The appraisal and title work are not optional extras; they’re standard examples of common requirements for loan applications because lenders rely on them to set maximum loan amounts and protect their legal interest in the property.

Special case: small business loan requirements

Small business loan applications combine personal and business underwriting. If you’re applying for an SBA‑backed loan or a line of credit for your company, expect a thicker file. Real examples of common requirements for loan applications in the business context include:

• Business formation documents (articles of incorporation, partnership agreements)
• Employer Identification Number (EIN)
• Business bank statements (often 6–12 months)
• Business tax returns for the last two or three years
• Year‑to‑date financial statements (P&L and balance sheet)
• Accounts receivable and accounts payable aging reports
• A basic business plan or use‑of‑funds statement

The U.S. Small Business Administration (SBA) publishes checklists for SBA 7(a) and 504 loans that reflect these requirements: https://www.sba.gov

Lenders will often also require personal guarantees from owners with a significant stake in the business. That means your personal credit report and income documentation are still part of the file, even if the loan is in the company’s name.

2024–2025 trends shaping loan application requirements

While the core examples of common requirements for loan applications haven’t changed much in decades, the way lenders verify them is evolving.

Key trends include:

• More digital verification: Payroll and income verification tools (like The Work Number and similar services) allow lenders to confirm your job and salary without pay stubs in some cases.
• Open‑banking access: Instead of uploading PDFs, you may link your bank accounts for instant income and cash‑flow checks.
• Faster identity checks: Document scanning and selfie‑ID matching cut down on in‑person visits, but still rely on the same IDs and proof of address.
• Tighter scrutiny for higher‑risk segments: After interest rate hikes and economic uncertainty, many lenders in 2024–2025 are asking for more documentation from self‑employed borrowers and small businesses.

The net effect: the paperwork categories stay the same, but the process feels faster and more automated — until the system flags something and a human underwriter asks for extra documentation.

How to prepare: using examples of common requirements for loan applications as a checklist

You can turn these examples into a practical prep routine before you ever hit “apply.” A smart approach is to organize your documents into a few folders: identity, income, assets, debts, and property or business.

For a typical consumer loan, you’ll want ready access to:

• A clear scan or photo of your ID
• Your Social Security number and past addresses
• The last two pay stubs or, if self‑employed, your last two tax returns
• Two or three recent bank statements
• A rough list of your monthly debt payments (credit cards, student loans, auto loans)

For a mortgage or home equity loan, add:

• Two years of W‑2s or full tax returns
• Documentation of your down payment funds
• Contact information for your employer and your real estate agent

For a small business loan, assemble:

• Business formation documents and EIN letter
• Business bank statements and financials
• A short, clear narrative of how you’ll use the funds and how they will be repaid

If you use these examples of common requirements for loan applications as a prep guide, you’ll spend less time scrambling for documents and more time negotiating terms.

FAQ: examples of common requirements for loan applications

What are the most typical examples of common requirements for loan applications?
Most lenders ask for proof of identity (government ID, SSN), proof of income (pay stubs, W‑2s or tax returns), recent bank statements, permission to pull your credit report, and details about the loan purpose. For secured loans, add collateral documentation like appraisals or vehicle titles.

Can you give an example of documents needed for a personal loan?
A common example of a personal loan application package would be: a photo of your driver’s license, your Social Security number, your last two pay stubs (or last two years of tax returns if self‑employed), two months of bank statements, and your consent to a credit check. Some online lenders may reduce the paperwork by verifying income and bank data electronically, but the underlying requirements are similar.

What are examples of extra requirements for self‑employed borrowers?
Self‑employed applicants often need to provide two years of full personal and business tax returns, year‑to‑date profit and loss statements, and several months of business bank statements. Lenders may also ask for client contracts or invoices to show that your income stream is ongoing.

Do all lenders require the same documents?
No. The examples of common requirements for loan applications described here are typical, but each lender sets its own documentation standards based on loan type, amount, and risk appetite. A small online personal lender might ask for less documentation than a bank underwriting a 30‑year mortgage, but they’ll still want to verify identity, income, and credit.

Are there examples of loans with minimal documentation?
Some lenders advertise “no‑doc” or “low‑doc” loans, especially for personal loans or small business cash advances. In practice, they still rely on data: they may pull your credit, connect directly to your bank accounts, or verify your income through payroll databases instead of asking you to upload documents. The data requirements remain; only the format changes.

Where can I find official guidance about loan and credit requirements?
For mortgages and consumer loans, the CFPB (https://www.consumerfinance.gov) and the Federal Trade Commission (https://www.ftc.gov) offer borrower education on credit reports, fair lending, and your rights. For small business loans, the SBA (https://www.sba.gov) publishes application checklists and program‑specific documentation requirements.