Question

A lender requires a borrower to submit his W2's and tax returns prior to receiving the Loan Estimate.

A) Passport and utility bills
B) W2's and tax returns
C) Social security card and driver's license
D) Rental agreement and bank statements

Answer 1

Before receiving a Loan Estimate, a lender may require a borrower to submit proof of income and identity. The borrower may be asked to provide W2's and tax returns as evidence of income, and passport and utility bills as identification documents.

Step-by-step explanation:

In the financial capital market, before a bank makes a loan, it requires a prospective borrower to fill out forms regarding income sources. The lender also conducts a credit check on the individual's past borrowing. In addition, the lender may require the borrower to submit certain documents that serve as proof of income and identity. This may include W2's and tax returns as evidence of income, and passport and utility bills as identification documents.