At one point of life, we find ourselves in a position that we need to apply for some credit loans. In such a situation, one may get confused about the steps to take.

 

This is so as many of the people lack knowledge of what will be the required loan documentation checklist for the loan to be approved.

 

This article will discuss documents that will be needed of anyone who wishes to apply for a loan in the 2020 fiscal year as discussed below.

 

The loan documentation checklist needed during application depends on the form of the loan one is taking.

 

For example, in the case of a business loan, the following documents need to be presented to the concerned financial institution. A complete detailed loan application form offered by the institution, a personal financial statement for the business, and an approximate credit card limit of $50,000 will be necessary.

Also, consider submitting a complete summarized business debt schedule.

 

For a mortgage loan, there are a number of documents needed to be presented to the concerned financial institution.

 

This will include a bank statement, tax returns for the last two years, a list of all assets that the applicant owns and a credit report (most underwriters will want to get the credit report themselves).

 

It is also important to note that you will be required to prove that you have a timely repayment plan. Also consider carrying with you a list of all your debts, as well as the loss and profit statements if you operate any business.

 

These documentations apply to almost each and every loan. (Download the complete checklists by filling out the form to the right).

 

A W-2 document from current and past employers is needed in each loan application. The main purpose of providing these documents is to prove that you are a position to repay your loan on time. It also enables the bank to determine the amount of money that they can lend you.

 

Providing a list of all properties that one owns also gives them a guarantee of what can be auctioned in case you default on payment. Consider making sure that you possess a proper loan documentation checklist so you know what documentation to get together before applying for a loan this 2020 finance year.

 

Don’t forget the all important credit report. You won’t necessarily be asked to submit one, but it would be a good idea to get one for yourself before starting the loan process. You’ll want to make sure that all items on your credit report are accurate since this is usually the first document that underwriters and bankers look at when evaluating a loan.

 

This will ensure that your loan application is approved faster because you won’t have to go back and forth with the loaning institution. I refinanced my house a few years ago when I really wasn’t prepared and the result was that a lot of time was lost.