Which of the following documents is typically required when applying for a mortgage loan?

When applying for a mortgage loan, one of the most critical documents that lenders require is proof of income. This documentation helps lenders assess the applicant’s financial stability and ability to repay the loan. Proof of income usually includes recent pay stubs, tax returns, and bank statements, which provide a clear picture of the borrower’s earnings.

Having proof of income allows lenders to verify that the applicant has a consistent and sufficient income stream to support the mortgage payments. It plays a central role in the underwriting process, enabling the lender to determine the borrower's debt-to-income ratio, which is a significant factor in loan approval decisions.

While an employment contract or business registration certificate may be relevant to specific situations, they do not universally apply to all mortgage borrowers. An insurance policy, while important for protecting the property, does not reflect the applicant's ability to repay the mortgage. Thus, proof of income stands out as the essential document in the mortgage application process.