Final answer:
A Loan Application is the document completed by a prospective borrower that details personal and financial information required by the lender to assess the feasibility of extending a mortgage. Option D is correct.
Step-by-step explanation:
The information source for a lender where a prospective borrower lists personal and financial details, describes the property to be mortgaged, and specifies the loan amount and repayment terms is known as a Loan Application.
To reassure a lender when faced with imperfect information about borrower's repayment capability, individuals seeking loans can provide extensive financial information, secure a cosigner, or offer collateral. Collateral can include property or equipment that the bank has the right to seize and sell if the loan is not paid back.
An insurance premium is the amount of money that an individual or business must pay for an insurance policy. Insurance premiums are typically paid at regular intervals, such as monthly or annually, and are calculated based on the risk associated with insuring the person or asset.