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Real Estate Loan Documents: Everything You Need to Know

In this article we’ll be reviewing the required documents that you’ll need to submit before funding your real estate loan.

These essential documents are required so that we can evaluate risk and determine the rate and terms of your commercial real estate loan. In order to help you prepare and submit your documents, let’s take a look at the required documents.

Personal Information Documents

The first set of documents required for your real estate loan application are your personal information documents. These documents help the lender verify your identity, income, and other personal details. The documents in this category include:

1.1) Valid Identification: This could be a driver’s license, passport, or any other government-issued ID.

1.2) Social Security Card: This helps the lender verify your social security number, which is required to obtain credit reports.

1.3) Employment Verification: You may need to provide a letter from your employer confirming your job title, length of employment, and income details.

1.4) Tax Returns: You may need to provide your tax returns for the previous two years to help the lender verify your income.

Financial Information Documents

The next set of documents required are your financial information documents. These documents help the lender evaluate your financial position and determine whether you can afford to repay the loan. The documents in this category include:

2.1) Bank Statements: You may need to provide your bank statements for the last three to six months, depending on the lender’s requirements.

2.2) Credit Reports: Your lender will obtain your credit report from the credit reporting agencies to assess your creditworthiness.

2.3) Debt Obligations: You will need to provide documentation of any other loans or credit cards you have, along with the monthly payments and balances.

Property Information Documents

The final set of documents required are the property information documents. These documents help the lender evaluate the property and determine its value. The documents in this category include:

3.1) Purchase Agreement: This is a legal document that outlines the terms and conditions of the sale.

3.2) Property Appraisal: A professional appraiser will assess the property’s value to ensure that the loan amount is reasonable.

3.3) Homeowners Insurance: You will need to provide proof of homeowners insurance, which protects your property in case of damage or loss.

Review

And there you have it, a comprehensive guide to the documents required for a real estate loan application. By having all the necessary documentation prepared ahead of time, you can make the loan application process smoother and more efficient. We hope you found this video informative, and if you have any questions, please let us know in the comments below. Thanks for watching, and we’ll see you in the next video.

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