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1. Make Sure You Pre-Qualify Before You Buy

Before you start looking for homes, get pre-qualified so you can get a good idea of what kind of home you can afford. Pre-qualification is a simple process, which is free of cost and can be done quickly. This can put you in a good position between Realtors and sellers.

2. Maintain Good Credit

Mortgage lenders look at your credit history as part of the qualification process and to determine whether or not you are capable of paying back your loan. In order to have a good credit history, you typically need a two year history of on-time payments and minimal outstanding debt. If you do have credit history problems, talk to your mortgage banker and see if they can help you fix those problems.

3. The Program Is Important – Not Just the Rate.

Don’t be fooled by the low rates; make sure you read every detail of the loan program. Most mortgage companies have a fixed rate or an adjustable rate mortgages with terms of 5-30 years. Loan programs like FHA loans only require borrowers to place 3.5% down payment on the home they are looking to purchase. There are many other programs available with great features such as easier qualifying procedure and decreased closing costs options, contact one of our mortgage bankers today for more information.

4. Become a Homeowner in Just Seven Days

Being a fully aware of how the mortgage process works can reduce possible delays and help you become a first-time homeowner. A list of required documents will be needed at during prequalification, so make sure you come prepared because towards the application process, this particular list of documents must be ready on hand.

During application, a loan officer will collect your documentations and help you complete the application form. Then you will receive a Truth in Lending statement and a Good Faith Estimate which will summarize costs and expected fees involved in your mortgage.

Next is the loan registration, which verifies that money is available at a set interest rate when your application is accepted. Most of the time with the proper documentation, you should be able to get a letter of commitment from your lender in as little as seven days. To secure a loan, the home must be collateralized after the appraisal is completed. Processors will arrange your information and they may confirm your employment status, bank balances, and other information regarding your application. The information in your loan file will be analyzed to check if your application meets the lending guidelines by an underwriter. This is when the loan will be either approved or denied.

Now we are down to the last steps, closing. When ones loan is closing, the ownership of the home will be transferred, all fees paid, remainder of the down payment cancelled and also the closing costs such as title insurance and taxes.

5. Government Programs

In 2008, loan limits were increased by FHA, Fannie Mae and Freddie Mac, and they also have added several programs specifically for first-time home buyers. Make sure you ask your loan officer for details.

Back to Purchase

Locations: 360 W. Butterfield Rd., Suite 320, Elmhurst, IL 60126 | 214 W. Ohio St., Chicago, IL 60610

An Illinois Residential Mortgage Licensee;License #: MB6759244, California Residential Mortgage Licensee; License #: 603F094, Florida Residential Mortgage Licensee; License #: CL0703664, Texas Residential Mortgage Licensee; License#:83247, and Wisconsin Residential Mortgage Licensee; License #: 600822.

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