What is Considered to be a Completed Loan Application?

Steven Kitnick — Fri, 21 Jul 2017 19:58:37 +0000

Let’s examine the Greater Las Vegas Association of REALTORS (“GLVAR”) Residential Purchase Agreement (“RPA”) (Rev. 06/17). On page 1 of 11 paragraph 2: Additional Financial Terms & Contingencies: A. New Loan Application and continuing onto page 2 of 11 it asks the Buyer to “submit a completed loan application to a lender of Buyer’s choice…” But, what is a completed the loan application? The GLVAR RPA offers no definition (see: GLVAR RPA “Other Matters” paragraph 23 Definitions). Moreover, mortgage lenders themselves often do not agree on what is considered a completed loan application. I suggest we embrace the Consumer Finance Protection Bureau (“CFPB”) definition that states “an application is defined as the submission of six pieces of information: (1) the consumer’s name, (2) the consumer’s monthly income, (3) the consumer’s Social Security number to obtain a credit report (or other unique identifier if the consumer has no Social Security number), (4) the property address, (5) an estimate of the value of the property, and (6) the mortgage loan amount sought. It’s my opinion we should this accept this definition. Why? Because we need a singular definition of what constitutes a completed loan application. We need clarity. We need to avoid misunderstandings. It’s a concise definition and it is embraced nationally. Let’s include it in the GLVAR RPA!

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What is Considered to be a Completed Loan Application?