What documentation is typically needed by lenders to process a home loan application?

The essential documentation needed by lenders to process a home loan application includes items such as bank statements and pay stubs. These documents serve as primary evidence of the applicant's financial status and ability to repay the loan. Bank statements provide insights into the applicant’s savings, checking account balances, and transaction history, while pay stubs detail an individual’s income, which is critical in determining debt-to-income ratios and other financial metrics essential for loan approval.

The other choices do not provide necessary information regarding the applicant’s financial capacity or reliability as a borrower. Educational transcripts are typically irrelevant to a mortgage application, as they do not reflect financial stability or income verification. Personal references might provide character insights but do not contribute to assessing creditworthiness or financial ability. A criminal background check may be part of a broader assessment process in certain contexts but is generally not required for the processing of a mortgage application in terms of financial documents.