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Loan Documents Required by Lenders From Applicants
Loan Documents Required by Lenders From Applicants
Loan documents are the documents in respect of loans. Loan documents can be categorized
into two groups:
Documents requested by the lenders from the loan applicants to obtain borrower’s
Information. The lenders request certain documents from the borrower for the purpose of
evaluating the risk in lending money to the borrower.
The loan documents that may be required by the lender from the applicants include:
Pay stubs
W2 Form
Tax returns
Form 10-K
Form 10-Q
Bank statements
Letter of Credit
Proof of business registration
Business permit and license
Employer Identification Number (EIN)
Business financial documents
Loan history
Proof of collateral
Business plan
Account details - Accounts Receivable Aging and Accounts Payable Aging
There are many documents related to loans that are issued by the lenders.
Some of these documents include:
Loan estimate,
Rate lock form,
Closing disclosure
LOAN ESTIMATE:
A loan estimate is a three-page form that a borrower receives after applying for a mortgage. The
loan estimate tells the borrower the important details about the loans they have requested. The
form include information like estimated interest rate, monthly payment and total closing costs for
the loan.
RATE LOCK FORM:
Rate lock form means that the interest rate won’t change between the offer and closing, as long as
the borrower close within the specified time frame and there are no changes in the application.
CLOSING DISCLOSURE:
A closing disclosure is a five page form that provides final details about the mortgage loan borrower
have selected. It includes the loan terms, borrowers projected monthly payment and how much a
borrower will have to pay in fees, closing costs and other costs to get the mortgage.
PAY STUBS:
A pay stub is the document that itemizes how much an employee is paid. It is also known as a
pay slip or paycheck stub. Paystub also includes the amount that was removed for taxes, insurance
costs etc.
Example of paystub:
W-2:
W-2 (officially, the "Wage and Tax Statement") is an Internal Revenue Service (IRS) tax form used
in the United States to report wages paid to employees and the taxes withheld from
them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or
other compensation as part of the employment relationship
Tax return is a form on which a tax payer makes an annual statement of income and
personal circumstances, used by the tax authorities to assess liability for tax.