When applying for a loan you need to have certain types of information available to fill out your application. One of the first steps in the loan process is filling out and completing an application. This is typically done through a lender or bank. After the application is filled out and preapproved, the lender may ask for additional information to complete the loan process.
Types of Loans
Loans are funded by a financial lender such as a bank or credit union. Businesses, mortgage companies and payday loan companies may work independently but are funded by a designated banking institute that pays out the loans their company makes. These financial backers often require that the information an applicant gives be approved by them before granting the loan. This is part of the underwriting or loan approval process. Types of loans may include a mortgage, car loan, student loan, business loan, personal loan, ATV or RV loan.
For any type of loan, you will have to show that you have adequate income to pay the loan back. Sources of income include employment income, social security benefits, child support received and disability payments. Pay stubs, W-2 and W-9 forms are often requested by underwriting in order to close the loan. Pay stubs from the last 30 days may be required in order show that your income is steady and consistent each pay period. A copy of your tax refund may also be requested to provide proof of all income from the previous year.
Any type of loan from a financial lender will require a close look at your credit report. Your credit history and credit score are important deciding factors as to your loan approval and your interest rate. Your credit report will show lenders how well you have paid off revolving debts in the past. It will also show if you carry high balances on your credit cards. Any type of negative account on your report such as a bill that has gone to collection or a judgment awarded on a creditor’s behalf against you may prevent you from getting a loan.
Required personal information for a loan includes current and previous addresses, current and past employers for the past five years, date of birth, social security number and names and information of co-signers or co-borrowers. Some loan applications may also require a minimum of three or more references. This cannot include family members but other people with whom you have a good working or personal relationship.
Appraisal or Inspection
For any type of home loan, second mortgage, refinance or home equity loan, an appraisal is needed. Information from this appraisal will be used to process the loan application. The appraisal will show detailed information about the value of the home, how much it’s worth and how it compares to similar homes in a 5- to 30-mile radius. Some loans for used autos, ATVs and RVs may require an inspection of the item before the loan can be processed.