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Loan Application
Is it time for that complete physical with your doctor? The one you dread because the Doc is going to check you EVERYWHERE? I hate to be the one to tell you this but applying for a loan can seem very similar. You probably will be able to keep your pants on for the loan application but it may not exactly feel that way. This was my attitude after applying for my first prequalification for a mortgage. I don’t have anything to be ashamed of under my financial clothes but I generally feel it’s my business and no one else’s. It turns out the people who were going to be willing to loan me a few hundred thousand dollars felt the opposite. Very strongly in fact and in retrospect I understand that. It still didn’t make the process any easier.
Sticking with the Doctor analogy, lenders need to get a light on every nook and cranny of your financial body. It’s nothing personal and you probably don’t have anything they haven’t seen hundreds of times before so get over it.
You’ll have to provide your Social Security number for the credit report they will run on you. They will ask for your current and past employer’s names and addresses as well as what you earn. They’ll want to know what you’ve got in the bank- checking, savings, CDs as well as account numbers. Got any stocks or bonds? Bring in the statements. Do you have any life insurance policies? If so, bring in the name of the insurance company, the policy number and the cash value if any. If you have a 401k or IRA, be prepared to show their current value. Again, the most recent statements are the best way to do this. Another component is the value of your personal property so they will inquire about this as well. This would include your car, any jewelry, art or collectibles. If it has value, you want to make note of it because the more you are worth, the more a creditor will consider you a good risk for the loan.
You will also be asked about any outstanding liabilities such as credit card debt, student loans, car loans or mortgages. You will be asked to provide the names of the creditors, the payment schedule and the balances.
Please remember to tell the truth, okay? Your signature is saying you are signing under penalties of perjury and don’t bother trying to hide something because finding a problem is the first thing a creditor looks for. Besides, you would just be hurting yourself; every time a credit report is run on your score, your score takes a hit. Meaning the more credit you apply for, the more your credit score drops and keeping that number high makes you more likely to get that loan.
The information may vary depending on whether it is automobile financing, a student loan or a mortgage but generally the more money you ask for, the more information they want so be prepared.
Topics: Home Loans, Payday Loans |
