Real Estate on Chicago's North Shore: Lake Forest... Lake Bluff... Kenilworth... Winnetka

 
Know Before You Owe
Get Pre-Approved!
To finance your new home, meet with a mortgage company. Pre-approval for a home loan is a good gauge of how much you can borrow and it shows home sellers that you have the backing to buy. Plus, the pre-approval letter from your mortgage company will put you in a better negotiating position when making an offer.
Most sellers will require you to submit a pre-approval letter with your purchase offer. At the pre-approval application, your lender will gather information about your employment, income, assets, and debts. They will also access your credit report at this time.

Lenders look at two key factors. First, your ability to repay the loan and, second, your willingness to repay the loan.

Ability to repay the mortgage is determined by analyzing your employment, income, and debt. Generally speaking, you will want to keep your monthly obligations (including the proposed housing payment at 50% or less of your total gross monthly income).

Willingness to repay is determined by reviewing your past payment history. Your credit report documents your financial behavior over the past seven years -- how much credit you have, how long you've had it and whether you pay your bills on time, among other things. Typically, mortgage lenders focus on the most recent 24 months.

During this phase, your lender will provide you with an estimate of the various fees and/or closing costs you should expect.

It is important to remember that there are no rules, just guidelines. Reputable mortgage lenders manually review all loan applications to insure you receive the best mortgage program, at competitive rates.
Would you like assistance finding a lender?
Please contact me if you would like me to refer you to a reputable mortgage loan officer.

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Ann Jones
Ann Jones
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