Change in Loan Purpose

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Question:

Loan originally for the purpose of "finish construction on Son's home." Processed as a unsecured consumer line of credit. Can purpose be changed to commercial line of credit using the same loan number with all new documents referencing commercial purpose?

Answer:

Loan numbers are an internal record keeping issue. Some banks use the same number to represent a borrower rather than a specific loan. You can change the purpose and provide new documents as you describe. It's up to you.

First published on BankersOnline.com 3/14/11