What information do I have to provide a lender in order to receive a Loan Estimate? | Consumer Financial Protection Bureau (2024)

FAQs

What information do I have to provide a lender in order to receive a Loan Estimate? | Consumer Financial Protection Bureau? ›

A loan estimate shows your projected closing costs, monthly payment, interest rate, and annual percentage rate, among other details based on the amount, type, and terms of the loan.

A loan estimate shows your projected closing costs, monthly payment, interest rate, and annual percentage rate, among other details based on the amount, type, and terms of the loan.

Assets and Debts

You will list on your mortgage application all monthly debt payments – auto and student loans, credit cards, existing mortgages – and assets, such as bank and investment accounts. Your lender may ask for these documents to support your assets and debts: Bank statements.

Your name. Your income. Your Social Security number (so the lender can check your credit) The address of the home you plan to purchase or refinance.

TILA disclosures include the number of payments, the monthly payment, late fees, whether a borrower can prepay the loan without penalty and other important terms. TILA disclosures is often provided as part of the loan contract, so the borrower may be given the entire contract for review when the TILA is requested.

Quick Loan Estimate delivery: A lender must issue a Loan Estimate within 3 days of receiving your mortgage application. Borrowers use the Loan Estimate to review a loan's terms and costs and ask the loan originator any additional questions.

See how we rate mortgages to write unbiased product reviews. Lenders need to look at your income, assets, credit, and debt before qualifying you for a mortgage. Be prepared to provide pay stubs, W-2s, tax returns, bank statements, and any other documentation proving you have the ability to repay the loan.

Income statement: An income statement (a profit-and-loss statement) lists your company's income and expenses and shows how much your company has made (or lost) during a given period. Income tax returns: Some lenders may ask you to submit your personal income tax returns for three years. Don't delay the process.

What are 5 pieces of information you need to apply for a loan? ›

Loan Application

The application typically requires personal identification information, income verification, employment history, credit history and the desired loan amount. The lender may also inquire about the purpose of the loan, the borrower's existing debts and other relevant financial obligations.

In most cases, when you get a mortgage, you'll need to give a lender your Social Security number so it can pull your credit and ensure that you meet its minimum credit score requirements.

Lenders often want to learn more about your income, assets, debts, and credit history. Mortgage lenders are also legally allowed to ask about an applicant's ethnicity and marital or divorce status. One question a lender may ask is whether you are part of a lawsuit.

A lender can get a good sense of your likelihood of being approved by checking out your recent pay stubs, bank statements, W-2 forms and tax returns. Depending on your financial situation, here are seven mortgage documents you might need when applying for a home loan.

In fact, a lender must wait until you indicate that you'd like to proceed with the loan application before charging you any other fees. Until that time, a lender also cannot collect your credit card number or require you to provide a check for anything other than a reasonable fee to obtain your credit report.

Key takeaways

Documents such as employment and income verification, asset statements, debt information, credit history and identification are necessary for mortgage preapproval. Preapproval letters are typically valid for 90 days and can be obtained within a few days if all necessary documents are provided.

Generally, the Loan Estimate requires the disclosure of categories of information that will vary due to the type of loan, the payment schedule of the loan, the fees charged, the terms of the transaction, and state law provisions.

This table breaks down your costs at closing, including any deposits you've already paid, credits and anything that has changed since your lender gave you your loan estimate. This provides a detailed look at your costs, including the home price, your closing costs and the seller's costs.

Loan agreements typically include covenants, value of collateral involved, guarantees, interest rate terms and the duration over which it must be repaid.