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The Curious Bag
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When you are approved for a loan, your lender will provide you with documents to review and sign. These legal loan documents are beneficial to you by providing you with the information you need to decide if you agree with the lender's requirements.
Facts
A legal loan document is any piece of paperwork that a lender is required by law to provide to a borrower. This includes a copy of the signed contract and any documents that outline the terms and conditions of the loan.
Significance
Loan documents often contain how much money is being lent, the interest rate on the loan, the repayment terms and any additional fees the borrower is responsible for.
Benefits
A legal loan document protects all parties involved by providing a legal record of the transaction that will stand up in court should the borrower or lender fail to adhere to the agreement.
Features
A legal and binding loan document may be changed at any time if the borrower and the lender agree to renegotiate the original loan terms.
Considerations
Some states will allow a borrower or lender to cancel certain types of legal loan documents after they are signed if the cancellation occurs within a specific time frame.
Source:
Washington State Department of Financial Institutions: Loan Documents
FindLaw: Canceling a Contract Within Three Days
More Information:
Free Legal Documents: Sample legal forms
Bloomington's Predatory Lending Information: How to Read a Loan Document
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