Credit Application When making a purchase that is large enough for you take out a loan, you undoubtedly had to fill out a credit application. What this does is lets the lender know who you are and what risk is associated with underwriting a loan on your behalf. The information gathered is assessed to determine the amount of credit and terms that should go along with the loan. This information comes directly from you and is typically checked against your credit report from Trans Union, Equifax, and Experian. This form of application is a legal document that binds the applicant to the terms and restrictions set forth. It is important to be truthful in your application for that very reason. This form is also a monitoring tool that is recorded on your credit report each time you submit an application. The application is then reviewed by an underwriter and used to secure a loan. You may be asked to provide some financial statements to validate your income. Income is essential as it is the DTI (Debt to Income Ratio) that is looked at closely to determine if you will be able to pay back a loan. The providing of financial statements may also be used to verify that you have savings equal to that of which you claim to have. Be sure to ask all your questions prior to filling out an application. You should be aware of the current rates available to you based on the type of loan applied for and you should base your decision of what lender to use on those rates they are offering. A quick and easy way to know that you are getting the best deal is to talk with a loan officer. They can quickly give you their current rates and an idea of what you would be able to secure through their lenders.

 

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