Application Submission

Loan application can be short and simple or a long- multi-page documents that need everything but a (skin graft) and
even some want that. J/k. seriously though, my point is that some are outrageously long but full of important
questions to qualify for a loan. The questions are based to tell, who you are, what kind of loan you're requesting, and
also your ability to repay the loan. When applying for a loan, the paperwork should flow both ways. The lenders
should provide disclosures that spell out your rights and responsibilities as a Truth-in-lending statement; this makes
costs clear and to you and also shows you the key terms of the contract.

Underwriting

Once you trade paperwork with the lender, the underwriting is ready to begin. This is when the lender applies the
3c's character, capacity, and capital. This assessment is based on the review of your application and your credit
report. The lenders goal in doing this is to predict whether or not you will repay the loan.

The 3c's definitions

Character: The traits you demonstrate that give a lender clues about how likely it is you will repay a loan.

Capacity: The likelihood that your resources will be sufficient to meet your financial obligations.

Capital: The likelihood that the assets you offer as security for your loan will be sufficient to pay your debts should
your cash flow dry up or your character change.

Approval or denial

It could only take a few moments or it could take up to a few weeks to find out whether or not your application has
been approved or denied. The lender's polices determines how long it will be on getting an approval or denial letter.
You should receive a written notification of approval or denial within 30 days of your submission being completed.
If you happen to be denied then you have the right to know why, it is required by the law.