Definition of loan application

document required by a lender prior to issuing a loan commitment. The application generally includes the following information: (1) name of the borrower; (2) amount and terms of the loan; (3) description of the collateral; and (4) the borrower's financial and employment data.

document required by a lender prior to issuing a loan commitment. The application generally includes the following information:

1. name of the borrower
2. amount and terms of the loan
3. description of the subject property to be mortgaged
4. borrower's financial and employment data

Example: Lowry wishes to borrow money to purchase a home. At Friendly Savings, she completes a loan application and pays an application fee. Friendly Savings will appraise the house, examine Lowry's credit rating (report), and verify certain information on the application prior to approving or disapproving the application.