Nearly all the successful businesses started with a financial challenges that led them to take loans. This shows that loans are an important step for every business success.

 

Even when buying homes, in most instances people will obtain mortgages to settle their home balances.

 

It has also been extended to cars, farming and even in educating our children. It is, therefore, true that in one part of your life you may need to take out a loan.

 

However, which loan documentation checklist is required of you to have knowledge about? In other words, this article will discuss what requirements are necessary to be fulfilled before taking a certain type of a loan.

 

What is included in a loan documentation checklist will vary according to the type of a loan one wants to take. Let’s see the different types of loans and the requirements in their loan documentation checklists.

 

Business or Personnel loans: for the purpose of identification, one is needed to provide a copy of his or her ID card or driving license. As an applicant, you will be required provide documents that will prove your home address. You will also need to submit a fully filled loan application form. It will also be required of you to provide documents that prove your age. Documents to show your tax return status will also be of great need. These are the requirements in a business or personnel loan documentation checklist.

Mortgage loans: in this case, the loan documentation checklist will indicate the following requirements. First is a W-2’s from past employers to the current employer. It will be required of you also to submit paycheck stubs, and documents supporting details of your past 2 years of tax returns. A list of all properties you own, proof of the income you receive from those properties, and documents that prove your identity and residence. It will also be required of you to have proof that you have paid your past debts on time. These are some of the requirements in a mortgage loan documentation checklist.

Car loans: just like in other form of loan application checklist, documents will be needed to prove your location address, ability to pay the loan back and to prove your age. You will also be needed to present W-2 documentation from the previous and current employer. In many states proof of insurance may also be required (although if this your first or only car, you might be able to get this requirement waived) A statement of your credit reports will also be essential for the car loan.

Nearly all of these requirements will be similar in almost all the loan documentation checklists. Consider having the knowledge on what will be the necessary requirements in the loan you plan to take.

 

Credit Report: One thing that all loans have in common is that bankers and underwriters will look over your credit report. This is so common that it’s practically a fact of life. Because of this, you should get your credit report first and make sure that all the information is up to date and correct. You see a lot of times it isn’t. It will take some time and work to get your report fixed if it’s inaccurate so the time to do it is before you apply for the loan.