Written by Josh McFadden | Last Updated December 4th, 2019Our goal, here at Best Company, is to provide you with honest, reliable information you need to find companies you can trust.
The vast majority of people will reach a point where they need to apply for a loan in order to make a purchase or meet a financial demand. One of the most dreaded parts of applying for a loan is all the paperwork and the sometimes-painstaking process that goes into being approved for the loan of choice.
Fortunately, personal loans are usually headache free.
Unlike mortgage loans, which can sometimes take weeks or possibly even months to initiate and complete, personal loans-for the most part-are a breeze. The entire process can often be completed in a single day. That means from the time you apply to the time you have funds in hand, as little as 24 hours have elapsed.
One of the reasons for this expedited process is the fact that applicants are required to submit stacks of information to the lender. With business loans and mortgage loans, lenders delve deep into finances, using W2s, pay stubs, tax forms and other information to assess the applicant's worthiness for the loan. But if you apply for a personal loan, the list of necessary documentation is relatively short.
So what should I bring to the table when closing a personal loan? Here are a few things that most lenders will ask for:
- Form of identification such as driver's license or social security card
- Verification of address
- Proof of income such as pay stubs or bank statements
These are the standard items you'll find with most financial institutions. Other lenders may have additional requirements for personal loan qualification. These may include the following:
- Employer's name and address
- Monthly debts and expenses
- Mother's maiden name
For most people, this information is readily available, so obtaining it and submitting it to the lender should be a simple activity.
So if you're thinking about applying for a personal loan to finance a large possibility of needs, take comfort to know that the responsibility on your end is quite minimal and painless.