loan application process

loan application process

The creation and transmittal of all information a lender might find necessary to assist it in reaching a decision to loan money to a borrower or not.At a minimum,the process usually consists of

• Alist of assets and liabilities

• Current cash flows showing a present ability to repay the loan, or pro forma projections showing future income sufficient to repay the loan, such as if the loan proceeds will be used to buy income-producing property

• A Social Security number and present address so that the lender can obtain a credit score

Depending on the complexity of the purpose for the loan,or the handicaps a borrower must overcome because of a poor credit score, the process can become much more complex. All lenders have their own specialized requirements and procedures; even individual loan officers within an organization may have differing requirements for the process.