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How do I get Pre-qualified to buy a home in the Chicago Suburbs?

When you are first looking to buy a home it is important that you talk to an licensed Illinois mortgage specialist to see how much financing you can obtain. This saves you and your Realtor time in narrowing down the home search of any potential home you may consider purchasing. The market is ever changing, not only in terms of the real estate market, but for financing side as well. You must make sure that you talk to someone who has experience in all programs and has access to updates on program guideline changes in Illinois. Banks are getting tougher and tougher with their guidelines, so this is the most important step before purchasing a home.

The process is simple and free to do. All Pre Qualifications are based on four simple factors:

• Credit
  
• Income
  
• Proposed Monthly Debt Obligations (new mortgage payment plus any existing bills)
  
• Down Payment.

A good loan officer will collect the following information from a client before issuing a pre-approval letter:

• pay check stubs
• asset information for two months
• your last two years of W2’s.
  

Although these documents are not needed to do a verbal pre-qualification, it is important that everything is as accurate as possible to avoid any issues during the future underwriting of your loan. A verbal pre-qualification takes about 10 minutes to do by phone and it will give you an idea of how to proceed. Your credit will have to be run but it’s important to avoid allowing multiple mortgage companies to pull your credit. You only have that done once during this process, even if you are shopping around for interest rates. In the long run it can affect your credit score so this should be avoided whenever possible.

Most importantly, find a mortgage specialist who you can trust. Many people have horror stories of being quoted rates and fees, and finding out at the closing that it’s a totally different story. Although the industry has made huge improvements in regard to predatory lending guidelines, predatory loans still happen on a daily basis. Any loan officer can say “today our rate is 5%”, but if you are not locking in right then, there is nothing holding that loan officer to that rate.  Loan officers sometimes do this as a way to build a relationship with a client so that they will come to them at the time of application.  They may also be lowering the rate, by essentially buying your rate down with increased closing costs, just because they know most customers shop for the lowest rate. Rates not only vary on a day to day basis, but sometimes hour to hour, based on the 10 Year Treasury. Until your rate is locked in, proceed carefully.

Feel free to post questions and feedback to this blog, or call me directly at 630-587-7300 to begin the pre-approval process.


Chris Puleo, MAOM
Sr. Loan Consultant
1st Mortgage of Illinois, Inc
630-587-7300 office
630-742-3198 cell
630-622-0464 efax
cpuleo@1stmortgage.com

An Experienced Loan Professional servicing the Chicagoland Area specializing in the West, Far West, and South Suburbs. Licensed in Illinois, Indiana, and Michigan.