What information must be contained in a mortgage loan application?

The correct answer is that a mortgage loan application must contain borrower personal information, financial details, and property details. This comprehensive information is essential for lenders to assess the borrower’s ability to repay the loan and to understand the property being financed.

The personal information of the borrower typically includes their name, address, contact details, and social security number, which helps the lender identify and evaluate the applicant. Financial details, such as income, employment history, debts, and assets, are critical for assessing the borrower’s creditworthiness and overall financial health. Additionally, property details encompass information like the property address, type of property, purchase price, and any other relevant data that provide insight into the value and condition of the asset being financed.

Other options fall short of the complete information required in a mortgage application. For instance, limiting the information to just the borrower’s name and social security number would not provide sufficient context for credit evaluation. Similarly, a statement of past loan applications or only the property address and price does not capture the financial standing of the borrower, which is crucial in the decision-making process for lenders. A robust application ensures that lenders can make informed decisions and manage risks effectively.