Which document must be included with every loan application as per Rhode Island law?

The correct answer is associated with the requirement to include specific documentation with a loan application in Rhode Island. In the context of mortgage applications, it is typically required that lenders gather comprehensive information about borrowers to assess their creditworthiness and ability to repay the loan. Among the typical documentation that might be included, credit reports are essential as they provide a detailed record of a borrower's credit history, which is critical for determining loan eligibility.

In Rhode Island, lenders are mandated to review a potential borrower's credit report to evaluate their financial standing. This document outlines the borrower's credit score, outstanding debts, payment history, and other essential financial behaviors that help lenders make informed decisions.

While employment verification letters, proof of previous addresses, and business cards may be helpful in certain contexts, they do not carry the same weight in evaluating the borrower's creditworthiness as a credit report does. The inclusion of a credit report is a well-established standard practice that aligns with both state laws and federal regulations governing mortgage lending, ensuring that lenders have accurate and up-to-date information about potential borrowers.

Understanding the importance of a credit report in this process aids both borrowers and lenders, reinforcing the fundamental nature of credit assessment in securing a mortgage loan.