Jump to Section
What are Loan Documents?
Loan documents are documents provided and requested by lenders for the purpose of providing a loan. They are typically statements of personal and financial information of the borrower to approve a loan. These documents are used by the lenders to evaluate whether or not they will provide you with a loan.
Loan documents are necessary to initiate a loan approval process by a lender. Some documents that may be required are tax returns, bank statements, pay stubs, W2, and a proof of income.
Types of Loan Documents
There are four types of loan documents:
- Loan Estimate : An initial loan estimate outlines the terms and costs of the loan. It is the first part of the paperwork provided by the lender.
- Rate Lock Form : A rate lock form, once signed, makes the loan estimate binding. It establishes a rate for a specified period of time.
- Borrower’s Information : The lender will request paperwork from the borrower for the purpose of evaluating the risk in lending money to the borrower.
- Closing Disclosure : A set of disclosures or closing disclosure is the final part of the lending process. This includes any riders or terms that apply to the loan.
Individual terms and forms within these three documents could include borrower information, borrower affidavit, financial documents, escrow related documents, etc. depending on the type and purpose of the loan.
Here is an article about specific types of loan documents.
Essential Terms in Loan Documents
There are some essential terms in loan documents that you should look out for. Here are ten provisions every loan agreement should have:
- Identity of parties : Names of lenders and borrowers should be stated along with address and other information about the parties.
- Date of agreement : Like most legally binding contracts, a loan agreement should also mark the date of initiation along with signatures by all parties.
- Amount of loan : Loan documents should include the exact amount of loan.
- Interest rate : Interest rate on the amount loaned should be mentioned in the document.
- Repayment terms : Loan agreements should always discuss ways in which the loan can be repaid along with any associated conditions with the repayment, such as timeline and deadlines. Often repayment is of three different kinds: payment on demand, payment at the end of the loan term and payments in installments.
- Default provisions : The loan agreement should define what constitutes as default and remedies in case of default. Default occurs when the borrower fails to meet repayment requirements.
- Signatures: The loan agreement will always have signatures of both parties, making the contract legally binding.
- Choice of law : The choice of law clause outlines the state whose laws will be applied in interpreting the agreement.
- Severability: This clause allows for the agreement to still be enforceable and continue even if some parts of it are declared unenforceable.
- Entire Agreement : The entire agreement clause precludes any party from claiming that there are other agreements in addition to the ones stated in the loan agreement.
Here is an article about loan terms and types of loans.
Required Loan Documents
Lenders require loan documents from borrowers as proof of financial and personal history. These are some of the common loan documents that you might see depending on your loan type:
Business Loan:
- Tax returns : In cases of sole proprietorship or partnership, you will need to provide personal tax returns. In case of LLC or corporation, you will provide your business tax returns.
- Bank Statements : Bank statements should have the name of business or the business name should appear in bank records. These could be in the form of business fees or any business-related fees.
- Proof of business : In order for lenders to understand business structure and legitimacy, you will need to provide business registration documents.
- Business permits/license : Business licenses and permits help you establish ownership of your business. Lenders can use this to ensure they are lending to the right person.
- Employer identification number (EIN): Employer identification number (EIN) is assigned by the IRS and can be required by lenders. Sole proprietorships would need a EIN if they hire any employees. Sometimes this number would be required as part of your loan application.
- Business financial documents : These can include profit-loss statement, balance sheet, cash flow statement, etc. These detail a company’s performance and would be required by the lender.
- Loan history : Lender would require information regarding your other loans to assess your debt level and ability to repay the loan.
- Proof of collateral : Sometimes lender would require a collateral and the proof of collateral before lending any money. The collateral is generally an asset of sufficient value to offset the loan amount.
- Business plan : Sometimes lenders can ask for business plans to document and detail business goals and predictions. The plan can include product details, customer analysis, supply chain, industry analysis, finances and cash flow.
- Account details : Lenders can require accounts receivable aging and accounts payable aging reports. These two reports provide information about how you manage your working capital. Accounts receivable aging document is usually required for a firm that operates in the business-to-business (B2B) segment. If your B2B company provides goods/services on credit terms, it will show up on your accounts receivable aging report. An accounts payable aging report informs the lender about the number of days of credit received from suppliers.
Here is an article about business loans.
Image via Pexels by Andrea
Personal Loan:
- Loan Application : A loan application will be required by your lender to initiate the lending process. It will ask for your personal information and loan amount required.
- Proof of Identity: You will need your identity proof to initiate any loan borrowing process. These can include driver’s license, passport, state-issued ID, certificate of citizenship, birth certificate, military ID, etc.
- Pay Stubs/W2/Employer/Income Verification : While there is no collateral backing a personal loan, lenders often require proof of employment to assess risk in lending. These could include pay stubs, employer’s contact information, income tax returns, bank statements, etc. Apart from these you will also need to provide your credit history and ensure that the desired loan amount is reasonable based on your credit history.
- Address proof: Proof of living situation can help lenders assess risk in lending as well. These could include utility bill, lease terms, proof of insurance, etc.
Here is an article on personal loans.
Get Help With Loan Documents
Do you have any questions about loan documents and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from lawyers who specialize in loans.
Meet some of our Loan Documents Lawyers
December 4, 2023
Tayane O.
Tayane M. Oliveira is a founding partner at Vannucci Oliveira. With a concentration in family law, Tayane is renowned for her commitment to providing compassionate yet powerful representation to her clients. Her experience as an associate attorney at Brodzki Jacobs & Brook, coupled with her unwavering dedication to her clients' welfare, prepared her for her current role at Vannucci Oliveira. Tayane's academic achievements are a testament to her rigorous intellectual curiosity and dedication to her profession. She graduated with a Bachelor of Arts degree in Criminal Justice, supplemented by a minor in Psychology, from Florida Atlantic University in 2013. The culmination of her academic pursuit came in 2017, when she earned her Juris Doctor degree, cum laude, from the esteemed Nova Southeastern University's Shepard Broad College of Law. Before co-founding Vannucci Oliveira, Tayane honed her skills in the heat of the courtroom, representing clients in an array of general civil litigation matters. This diversified exposure instilled in her an ability to tackle complex legal challenges, a skill she employs to benefit her clients in family law. Originally from Brazil, Tayane brings an international perspective to her practice. When not delving into legal briefs or advocating for her clients, she indulges in travelling, reading, spoiling her puppies, and exercising, activities that not only rejuvenate her but also provide her with a broader perspective on the world and her practice. *Supreme Court Certified Portuguese Speaking Mediator
December 4, 2023
McCoy S.
P. McCoy Smith is the Founding Attorney at Lex Pan Law LLC, a full-service technology and intellectual property law firm based in Portland, Oregon, U.S.A and Opsequio LLC, an open source compliance consultancy. Prior to his current position, he spent 20 years in the legal department of a Fortune 50 multinational technology company as a business unit intellectual property specialist; among his duties was setting up the free & open source legal function and policies for that company. He preceded his in-house experience with 8 years in private practice in a large New York City-based boutique intellectual property law firm, working simultaneously as a U.S. patent litigator and U.S. patent prosecutor. He was also a patent examiner at the U.S. Patent & Trademark Office prior to attending law school. He is licensed to practice law in Oregon, California & New York and to prosecute patent applications in the U.S. Patent & Trademark Office; he is also a registered Trademark and Patent Agent with the Canadian Intellectual Property Office. He has degrees from Colorado State University (Bachelor of Science, Mechanical Engineering, with honors), Johns Hopkins University (Masters of Liberal Arts) and the University of Virginia (Juris Doctor). While in private practice, and continuing into his in-house career, he taught portions of the U.S. patent bar exam for a long-standing and well-known patent bar exam preparation course, and from 2014-2020 was on the editorial board of the Journal of Open Law, Technology & Society (JOLTS), and starting in 2023 will be on the editorial board of the American Intellectual Property Law Quarterly Journal (AIPLAQJ). He is the author or co-author of chapters on open source and copyright and patents in “Open Source Law, Policy & Practice” (2022, Oxford University Press). He lectures frequently around the world on free and open source issues as well as other intellectual property topics.
December 6, 2023
Eliza J.
Eliza brings a distinguished track record of delivering outstanding results for her clients, showcasing expertise across a spectrum of legal areas. Eliza is not just an attorney; she's your dedicated advocate with a proven record of achieving excellent results for her clients. Her representation spans numerous family law cases, including dissolutions, custody, support, probate, and civil litigation matters. Eliza's unique background as a Registered Nurse and licensed Attorney sets her apart. Before establishing her law practice, she served as a Registered Nurse in various hospitals across Los Angeles and the Bay Area. Notably, she contributed to prominent institutions such as Los Angeles County Public Health and the City of Anaheim. Additionally, Eliza ventured into entrepreneurship, managing her own Professional Fiduciary and Consulting business. Her legal acumen extends to civil litigation, personal injury, medical malpractice, nursing home abuse, worker's compensation, and family law matters. Eliza earned her Bachelor's Degree in Nursing and Public Health from CSU Dominguez Hills. In 2008, she furthered her education, obtaining a Master's Degree in Nursing, Administration, and Healthcare Management, along with a Quality Improvement Certificate. Eliza culminated her academic journey by earning her law degree from the JFK University of Law in 2016. Eliza's multidisciplinary background uniquely positions her to navigate the intricacies of legal matters, offering a comprehensive and compassionate approach to her client's diverse needs. Eliza's diverse background uniquely positions her to understand and address your legal needs comprehensively. Trust her to navigate your case with care and dedication, ensuring you receive the support you deserve.
December 6, 2023
Kenneth W.
Committed to a career in advocacy as an attorney, educator, and consultant, I specialize in education, family, personal injury, and criminal law. While at John Rue & Associates LLC, I led litigation and alternative dispute resolution, handling complex class-action lawsuits involving discrimination, privacy, administrative, and education law. I also directed conflict resolution through mediation, reducing costs and securing favorable client outcomes. While in law school, I served as a law clerk at Wilson Elser, excelling in crafting answers, overseeing discovery, attending depositions, and conducting exhaustive legal research. My responsibilities extended to preparing deposition summaries, assisting in motion practice, drafting persuasive briefs, evaluating cases, and contributing to trial preparations. I thrived in managing client affairs, supporting colleagues, and ensuring compliance with relevant laws. I am eager to explore opportunities to contribute my skills and passion to impactful projects aligned with client needs. I look forward to discussing opportunities and demonstrating how my qualifications will meet client needs.
December 7, 2023
Adam T.
Legal professional with 10+ years of Fortune 500 in-house and AmLaw 50 law firm experience in crafting multi-pronged litigation, regulatory, and public policy strategies and negotiating pioneering, high-stakes global cloud services and digital content distribution deals.
December 8, 2023
Carmen M.
Carmen Joseph Marzella is the founder and Managing Partner of the Marzella Law Group, PLLC. Carmen focuses his practice on providing legal counsel to small and mid-sized businesses, with particular concentration on Franchising, Purchase and Sale of Business, Commercial Transactions, Partnerships and Joint Ventures and Commercial Leasing, and the Purchase and Sale of Commercial Real Estate. Carmen has a diverse background with significant experience in Business and Restaurant Development, Commercial Litigation, Complex Commercial Transactions, Stock and Asset Sales and Acquisitions, Complex Commercial Real Estate Transactions, Real Estate Development, Environmental, and Project Finance. Carmen is frequently consulted regarding the succession of a closely held or family business, estates, estate planning, and trusts. Carmen also provides counsel to Franchisees in a variety of industries on the formation, operation and expansion of their business networks, franchise related disputes, financing, and franchise sales and acquisitions. Carmen has represented clients in numerous states around the country. In addition to his impressive professional credentials, Carmen was a multi-unit franchise owner of Dunkin’ Donuts / Baskin Robbins stores and has served on the Dunkin Brands, Inc. Brand Advisory Council as the Combo-store Representative. He has also served on the Dunkin’ Donuts Regional Advisory Council for the Southeast Region.
December 11, 2023
Ido A.
Ido Alexander is dedicated to helping his clients identify risks and understand how to navigate the unknowns. He has a keen ability to sort through the noise to develop strategies for growth and advance clients' interests. An experienced counsel, he focuses on finding solutions for businesses, estate planning needs, helping resolve complex and strategic disputes, and at times restructuring through bankruptcy or out of court, while keeping his clients' financial health as the top priority.
Find the best lawyer for your project
Browse Lawyers NowHow It Works
Financial lawyers by top cities
- Austin Financial Lawyers
- Boston Financial Lawyers
- Chicago Financial Lawyers
- Dallas Financial Lawyers
- Denver Financial Lawyers
- Houston Financial Lawyers
- Los Angeles Financial Lawyers
- New York Financial Lawyers
- Phoenix Financial Lawyers
- San Diego Financial Lawyers
- Tampa Financial Lawyers
Loan Documents lawyers by city
- Austin Loan Documents Lawyers
- Boston Loan Documents Lawyers
- Chicago Loan Documents Lawyers
- Dallas Loan Documents Lawyers
- Denver Loan Documents Lawyers
- Houston Loan Documents Lawyers
- Los Angeles Loan Documents Lawyers
- New York Loan Documents Lawyers
- Phoenix Loan Documents Lawyers
- San Diego Loan Documents Lawyers
- Tampa Loan Documents Lawyers
related contracts
- Addendum to Lease
- ALTA Statement
- Apartment Lease
- Apartment Rental Agreement
- Assignment of Lease
- Boundary Line Agreement
- Brokerage Agreement
- Building Contract
- Building Lease
- Business Office Lease Agreement
other helpful articles
- How much does it cost to draft a contract?
- Do Contract Lawyers Use Templates?
- How do Contract Lawyers charge?
- Business Contract Lawyers: How Can They Help?
- What to look for when hiring a lawyer
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewContracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.
View Trustpilot ReviewI never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.
View Trustpilot ReviewI got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.
View Trustpilot Review