Know Your Options When Applying for a Chicago Mortgage
If you are looking to buy a new or second home or if you are interested in refinancing in the greater Chicago area, in Illinois or beyond, understanding the steps to securing your home loan is of utmost importance.
In today’s mortgage lending environment, getting pre-approved before starting your home search is an essential first step in the home buying process.
Step 2 – Choose Your Mortgage Type
The most popular Chicago mortgage type and program is the conventional 30 year fixed rate mortgage; however, our loan officers can assist in helping you find the right mortgage that is best suited to your needs. Other options include an FHA loan (a loan insured by the Federal Housing Administration which is popular due to its lenient approval standards and low down payment requirements), a jumbo loan (a loan amount above $417,000) or a VA loan (a loan backed by the Department of Veterans Affairs which requires no down payment and carries no mortgage insurance requirement). You can ask your loan officer which loan would work best for you and your finances.
Step 3 – Choose Your Mortgage Program
The next step in securing your loan is choosing the right loan program for your needs. Adjustable rate mortgages usually offer low rates for an initial period before adjusting to meet market conditions and are popular among borrowers who wish to reside in the property for a limited amount of time. Examples of ARM mortgages include rates that are set for either 5, 7 or 10 years before the interest rate changes. Fixed rate mortgages offer loans where the interest rate remains the same throughout the term of the loan and come in 10, 15, 20 and 30 year terms.
Step 4 – Know Your Credit Score
Your credit score plays a major role in determining the rate that you’ll be able to get on your mortgage. Making wise financial decisions such as paying bills on time and spending responsibly will help you keep your credit score healthy. However, if your credit is not perfect, our officers can assist you in working to improve your credit score which will provide you with more mortgage options and help you qualify for the best rate.
Step 5 – Get Started
When you are ready to get started, visit contact us to help you decide how much you can afford. Your social security number is not required and in a few easy steps, you can get a free, no obligation mortgage rate quote. Otherwise, call us at 708-531-8388 or complete the form below.