Applying for a Real Estate Loan in Key West.

How to apply for real estate loan?

In Key West obtaining a loan requires a lot of paperwork and sometimes a lot of fortitude. The savings and loan scandals and the large number of foreclosures in recent years in Key West have forced lenders to take a much more critical look at their lending practices. While you won't be asked for your blood type, it's a good bet that you will be asked about everything in your financial history. In Key West Loan applications vary, but most require the following information:

• Employment history, salary history, and proof of employment. This may require you to obtain a letter from your employer as well as recent wage stubs. You may be asked for copies of your federal tax returns for recent years or copies of your W-2 statements. While there is no law that requires you to submit this information, the real estate loan lender has the right to turn down your request for a loan if you refuse to supply pertinent information. If you are using other income to qualify for the real estate loan, such as income from property, child support, or income from investments, you will need to provide proof of these as well.

• Credit history. This includes all the account numbers of all credit cards that you currently have. You may be asked to submit year-end statements that reveal how much interest was paid on these cards during the preceding year.

• Outstanding debts. These include automobile loans, alimony, child support payments, credit-card debt, etc.

• Assets. These include the value of any items you own, such as automobiles, rental property, stocks, bonds, cash, savings accounts, IRAs, retirement accounts, mutual funds, etc.

• Source of your down payment for your real estate loan. In Key West The lender will want to make sure that you are not borrowing money to make your down payment. (If you are borrowing money and will be making interest payments, this will be taken into consideration.) If you are receiving a gift from relatives for a down payment, the lender will expect proof that the gift will be forthcoming.

How long does it take to obtain real estate loan in Key West?

When you apply for the real estate loan in Key West, ask the lender how long the approval process is expected to take. It can take anywhere from twenty-four hours to three months, depending on a variety of factors. If you have included a mortgage-contingency clause in your purchase contract, be sure to inform your lender when you apply for the loan of the date the clause expires. Usually, your lender will work with you to meet the deadline or alert you that approval will take more time. At that point, you may be able to get an extension from the seller on the contingency.

Once your real estate loan is approved, the lender will provide you with a loan commitment, which agrees to lend a specific amount of money on specific terms. A copy of this commitment can be provided to the seller to assure him or her that you’re financing is in place.