A Beginner’s Guide to Applying for a Mortgage Loan

Web Admin - Thursday, February 20, 2014

illinois mortgage loan lawyerFor many first-time home buyers, the process of applying for a mortgage can seem complex. This guide will explain the basics of the process, such as the timeline for applying for a mortgage, the documents that applicants should procure and bring, and the credit score and down payment that applicants should expect.

The Mortgage Timeline

The mortgage process begins with a pre-approval application. The purpose of the preapproval process is to let the bank or lender look into the applicant’s finances, in order to make sure that they can afford a loan. This is when banks ask for most of the documentation. Often they want things such as:

- a list of addresses and landlords;
- a list of previous employers;
- pay-stubs from the previous one or two months, with a person’s year-to-date earnings included as well;
- the last two year’s W-2 forms;
- two months of bank statements for all accounts;
- a list of all debts not on the applicant’s credit report; and
- a list of all other real estate that the applicant already owns.

If the applicant has already found a house that they like, and their offer has been accepted, then the bank will also want the seller’s contact information and a copy of the contract. Being ready to provide these documents can help speed up the mortgage process.

Once a person goes through the pre-approval process and has made an offer on a house, the bank will order an appraisal on it. The appraiser will go through the house and determine the value, and then the bank will take their assessment into account when calculating how large a loan they can offer. Generally speaking, the bank will base their offer on either the appraisal value or the purchase price, depending on which is lower.

After the appraisal, the loan underwriter will look at all the documentation to make sure the loan is a good investment for the bank. From start to finish, the whole process usually takes about four to six weeks on the bank’s end, but timelines may vary, and asking the lender in the beginning may be a good idea.

Credit Scores and Down Payments

In addition to the array of documentation, lenders will also expect borrowers to have good credit scores and money available to make a down payment on the house. The rule of thumb for a conventional loan, according to U.S. News, is that a borrower would need a credit score of at least 650. Conventional loans also require, on average, a down payment of around 20 percent. Borrowers may have an alternative in the Fair Housing Act loan, which is a loan insured by the federal government. These loans offer a 3.5 percent down payment with a 580 credit score, and a 10 percent down payment with a 500 credit score.

If you are going through the process of buying a home, contact an Illinois real estate attorney today. Our team serves people in many northwest suburban areas including Inverness, Barrington and Long Grove.

About the Author: Attorney Jay Andrew is founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.

Recent Posts


Deer Park workers compensation lawyer Rolling Meadows car accident lawyers Rolling Meadows insurance dispute lawyers, insurance dispute Palatine drug lawyer real estate attorney Illinois real estate Crystal Lake traffic lawyer Barrington civil litigation attorney Rolling Meadows probate lawyer Buffalo Grove insurance claim dispute lawyers South Barrington real estate attorney child safety life insurance claims wrongful termination criminal defense Crystal Lake law firm Illinois LLC creation insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Schaumburg estate planning attorney Palatine traffic accidents Schaumburg car accident attorney Illinois Inverness probate lawyer life insurance personal injury accidents Illinois medical malpractice attorney attorney fees trauma after an accident Illinois insurance claim dispute lawyer Crystal Lake employment attorney DUI penalities Long Grove real estate lawyer jet ski accidents dram shop law BAC employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Family Medical Leave Act unpaid overtime Colin H. Gilbert Mount Prospect wills and trusts lawyers Long Grove estate planning Rolling Meadows accident lawyer Illinois Workers’ Compensation Commission DMV Illinois Smoke Detector Act GM ignition switches Palatine civil attorney coronavirus LLCs wills and trusts Illinois insurance dispute lawyers loopholes Barrington real estate lawyer personal injury law firm Barrington Illinois estate planning lawyer Illinois personal injury lawyer South Barrington real estate lawyer medical malpractice compensation Crystal Lake business law attorneys Illinois traffic attorneys Illinois wills and trusts attorneys preventable medical errors Inverness accident lawyer traffic tickets Deer Park medical malpractice attorney employee rights Arlington Heights wills and trusts attorneys income distribution deducation Illinois Wage Payment and Collection Act Arlington Heights real estate lawyer hiring employees workers compensation benefits Barrington attorney Long Grove estate planning attorney revenge porn employment lawyer comp time foreclosed rental property Crystal Lake will lawyer pedestrian accident cell phone accidents rent to own real estate contracts employee discrimination health insurance dispute Rolling Meadows traffic law firm Rolling Meadows tax attorney distracted driving accidents Barrington boating accident attorney Crystal Lake employment lawyer Arlington Heights personal injury attorney truck collisions unfunded trust Crystal Lake pedestrian accident lawyer Illinois traffic attorney estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers personal injury Federal Food Drug and Cosmetic Act Illinois Trust Code Crystal Lake employment law attorney Schaumburg Illinois traffic ticket lawyer insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys golf accidents Des Plaines accident attorney Arlington Heights traffic attorney uninsured motorist Illinois wills and trusts Inverness civil lawyer vacation home Arlington Heights Attorney Arlington Heights insurance attorney surgical mistakes Crystal Lake bike accident lawyer Illinois medical malpractice lawyers deadly crashes insurance claim dispute attorney Illinois workplace lawyer blood alcohol content Illinois personal injury Palatine employment law lawyer owner responsibility paid sick leave Deer Park accident attorney Illinois tax attorney drug possession pedestrian-automobile accident construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Illinois injury lawyer pet law Crystal Lake personal injury lawyer homestead rights disability benefits traumatic brain injury car accident lawyer Buffalo Grove criminal defense lawyer IRA benefits Schaumburg employment law attorneys Schaumburg criminal attorney car accident lawyers Illinois pet lawyer Buffalo Grove traffic lawyers work unions Barrington employment law attorney workplace sexual harassment real estate lawyer Arlington Heights wills and trusts attorney estate planning trusts privacy right to work Crystal Lake medical malpractice attorneys Crystal Lake car accident attorney Rolling Meadows traffic attorney Palatine corporate attorney Rolling Meadows marijuana attorney Palatine employment attorney Illinois estate planning attorney medication errors Arlington Heights tax lawyer ken apicella Illinois medical malpractice case Barrington personal injury attorney Arlington Heights estate planning attorney trucking accidents Rolling Meadows employment law attorney motorcycle accident Arlington Heights employment attorney texting and driving Illinois traffic accident lawyer Long Grove wills and trusts attorneys Des Plaines Traffic Lawyer denied insurance claim financial advisors swimming pools Inverness elder law lawyer Illinois car accident attorney commercial leases insurance dispute attorney insurance denials brain injury Illinois insurance lawyer startup company Buffalo Grove law firm insurance negligence Schaumburg criminal law attorney federal crimes estate planning lawyer job lawyers motorcycle accident lawyer Des Plaines personal injury lawyer expungement traffic accidents unauthorized overtime bicycle accidents Arlington Heights injury attorney Illinois Human Rights Act special needs trust dynasty trusts real estate closing Illinois elder law attorney Illinois insurance disputes Inverness personal injury attorney Barrington injury attorney insurance dispute Buffalo Grove personal injury attorney suspended license probate claims process business litigation digital assets Deer Park real estate law firm Illinois criminal defense attorney new real estate form accidental death benefits Illinois traffic laws murder charges cell phone probate process Schaumburg medical malpractice lawyer landlord Arlington Heights wills and trusts lawyer wrongful death Illinois wrongful termination lawyer rollover car crashes Rolling Meadows Chicago insurance claim attorneys commercial leasing senior citizens boating under the influence minimum wage condo Rolling Meadows medical malpractice lawyers Illinois rollover accident lawyers insurance claim denial Buffalo Grove car accident lawyer rest breaks employees employment attorney drug crime car collision employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys pain and suffering BAIID insurance agents drug crimes bicycle dooring accidents Barrington Traffic Lawyer Arlington Heights pedestrian accidents Des Plaines real estate lawyer Illinois trusts attorney pizza emoji Inverness real estate lawyer Rolling Meadows corporate lawyer whistleblower protections Food and Drug Administration's Food Safety Modernization Act Arlington Heights car accident lawyer modern family estate planning Deer Park traffic accident attorney IRA trust transfer insurance claims traffic offenses Palatine civil litigation lawyer personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys liability claims Mount Prospect elder law attorney Crystal Lake medical malpractice law firm Schaumburg estate attorney Exclusions Riverwoods estate planning lawyer probate lawyer fatal car accidents college kids Illinois bicycle safety Illinois insurance claim attorney car crash Deer Park traffic lawyer estate planning Rolling Meadows employment attorney operating agreements Illinois home inspection Arlington Heights lawyer speeding insurance claim delay slip and fall accidents underfunded trust digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers CAM texting while driving marijuana crimes attorney TBI Chicago insurance law firm natural gas explosion estate planning for college students Palatine construction attorney medical malpractice Barrington litigation attorney Legal Info real estate zoning Schaumburg personal injury lawyer mass shooting Chicago attorney distracted driving accident victims premises liability clemency living wills Deer Park personal injury lawyer Illinois jet ski accident lawyer DNR federal regulations for LLCs Inverness DUI lawyer agent nursing home negligence life insurance policy criminal record traffic laws Arlington Heights employment law attorneys Crystal Lake criminal defense attorney Thanksgiving Rolling Meadows personal injury attorney Inverness real estate attorney car accidents Illinois registered agent Palatine personal injury lawyer DUI defense Illinois mortgages estate tax Illinois employment law Rolling Meadows DUI lawyer pregnant women insurance adjusters medical marijuana Schaumburg employment attorney Illinois business law atorneys employment law, Illinois employment laws creditors Chicago biking tips Illinois Sales Representative Act Illinois employment lawyer Forcible Entry criminal law Inverness traffic law firm Whistleblower Claims Rolling Meadows criminal lawyer Crystal Lake accident attorney Super Mario POA Barrington drug crime attorney Chicago will attorney, social media platforms, Illinois estate planning lawyer, jet ski Crystal Lake traffic attorney liens Crystal Lake tax lawyer no contest clauses guardianship attorney Buffalo Grove probate lawyer Long Grove real estate attorney Barrington employment law firm Illinois corporate lawyer Des Plaines DUI attorney Illinois pedestrian accident attorney Deer Park motorcycle accident lawyer Deer Park employment law attorney low-ball insurance settlement Schaumburg probate attorney insurance claim denials medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers traffic crimes Rolling Meadows employment law attorneys traffic violations Mount Prospect real estate lawyer Fourth of July Schaumburg traffic lawyer Rolling Meadows insurance dispute lawyers loss of consortium Des Plaines personal injury attorney eluding a police officer Rolling Meadows criminal attorney healthcare Chicago lawyer insurance denial appeals crossover accidents Kenilworth estate planning lawyer Illinois civil litigation lawyer driving Schaumburg injury lawyer Palatine real estate lawyer slip and fall insurance claim dispute drug crimes lawyer defective products lawyer Retaliatory Discharge Illinois law Chicago traffic lawyer Kenilworth estate planning attorney insurance claim Des Plaines personal injury lawyers probate fees changes to mortgage law Schaumburg personal injury lawyers taxes bad faith insurance claims preventing accidents fiduciary rule delay Illinois Probate Act of 1975 Buffalo Grove injury lawyer problem employees Barrington criminal lawyer civil rights violation gift taxes internet Chicago corporate attorney Rolling Meadows insurance attorney gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys rollover accidents digital evidence wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace product liability anesthesia errors Crystal Lake pet attorney Illinois estate planning law firm social media after death Arlington Heights trucking lawyer Liquor Control Act traumatic brain injuries Crystal Lake medical malpractice lawyer Attorney Ken Apicella Crystal Lake insurance lawyer trench injuries automated cars wage theft overtime violations spinal cord injuries car accident Transfer on Death Instrument workers compensation pedestrian injuries, pedestrian fatality Colin Gilbert Palatine criminal defense lawyer Deer Park DUI lawyer denied insurance claims Rolling Meadows real estate attorney Crystal Lake car accident lawyer Illinois red light cameras irrevocable trust Illinois employment law firm appealing an insurance claim involuntary manslaughter Barrington business law firm estate attorney products liability Chicago estate planning lawyer Des Plaines tax law firm personal injury claim Arlington Heights car crash attorneys real estate leasing employment law underage DUI Chicago car accident lawyer condo association Joliet general practice lawyers murder capital gains tax corporate law Palatine elder law attorney Arlington Heights criminal lawyer Palatine Attorney controlled substance Palatine corporate law attorneys head on collisions forming a corporation in Illinois Buffalo Grove employment lawyer Schaumburg estate planning lawyer Des Plaines insurance attorney BUI workers comp civil litigation attorney power of attorney investment property Illinois personal injury lawyers Illinois living will Illinois real estate lawyer spinal cord injury Buffalo Grove real estate attorney Palatine employment lawyer denial of life insurance deed transfer boating DUI institutional trustee Inverness injury lawyer pedestrian accidents Barrington estate planning lawyer Crystal Lake estate planning lawyer Chicago employment lawyer Schaumburg insurance lawyers Barrington employment attorney Inverness insurance attorney medical malpractice claims Palatine traffic lawyer auto accidents Arlington Heights personal injury lawyer Rolling Meadows personal injury lawyer Buffalo Grove medical malpractice lawyers Des Plaines pet law attorney murder defense insurance disputes Barrington estate planning attorney digital media accounts, estate planning, Arlington Heights estate planning attorney, residential real estate Fair Labor Standards Act trusts IRELA Palatine probate lawyer dog bites Barrington workers compensation attorney Rolling Meadows Traffic Lawyer Schaumburg Attorney back injuries Schaumburg wrongful death attorney estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, underinsured motorist Employment Discrimination Law Class A misdemeanor Illinois small business dealing with problem employees car crash injuries Illinois job attorney Illinois employee rights attorney. FMLA Illinois employment law attorneys mortgage Illinois DUI attorney Des Plaines drug crimes lawyer Chicago employment attorney personal injury attorney breach of contract Palatine estate planning lawyer estate planning attorney Palatine law firm license Des Plaines civil attorney subcontractor Rolling Meadows insurance lawyer Chicago will attorney Rolling Meadows personal injury lawyers drunk driving advance healthcare directive trust payments estate plan Palatine injury attorney Barrington criminal defense lawyer Jay Andrew Palatine trusts lawyer first degree murder Illinois defective products attorney Schaumburg elder law lawyer Home Remodeling Repair Act Rolling Meadows Attorney hit and run accident Des Plaines claims law firm Schaumburg real estate lawyer reckless homicide filing a medical malpractice claim Illinois employment attorneys Inverness corporate attorney drunk driving statistics sole proprietorship traffic violations defense fault based insurance elder law Chicago estate planning Illinois driving without license pay when paid contract Schaumburg drug defense lawyer Illinois attorney DUI attorney Illinois workers compensation lawyer Illinois speeding lawyer boating accidents real estate attorneys license reinstatement real estate probate Chicago trucking accident attorney civil litigation personal injury claims independent contractor landlord tenant law wills Illinois workplace discrimination attorney Self-Directed IRA Accounts sexual images contracts digital information Rolling Meadows boating crash lawyer installment contracts breathalyzer test Barrington personal injury lawyer overtime pay Illinois trucking safety Illinois insurance claims lawyers Illinois collections attorney probate claims life insurance lawyer Des Plaines Illinois medical malpractice claim Mt Prospect Attorney Rolling Meadows business lawyer elder abuse drugs Illinois personal injury attorney Des Plaines medical malpractice attorney Arlington Heights wills and trusts lawyers Crystal lake insurance dispute attorney comparative negligence Buffalo Grove traffic attorney trustee Schaumburg personal injury attorney Palatine punch death Illinois workers compensation attorney insurance agent negligence Illinois probate lawyer food poisoning traffic deaths blended families tax attorney small business license suspension employment contract Des Plaines injury law firm Palatine business attorney Crystal Lake injury attorney Illinois employment laws Arlington Heights TBI attorney Arlington Heights medical malpractice lawyer pet bites living trust benefits healthcare claims criminal Inverness estate planning lawyer Do Not Resuscitate commercial real estate DUI Schaumburg corporate attorney Des Plaines drug lawyer Palatine workers compensation lawyer Illinois Transfer on Death Instrument privacy laws Buffalo Grove corporate attorney in terrorem provision living trust vs will Illinois construction accident attorney PTSD Detainer Actions field sobriety test Illinois employment law attorney Rolling Meadows litigation lawyer School Visitation Rights Act Des Plaines collections attorney Des Plaines criminal attorney Illinois insurance claim dispute lawyers Crystal Lake personal injury attorney Arlington Heights accident attorney Home Sale Contingencies living trust Illinois lawyer Illinois business lawyer compensatory time Illinois estate planning Arlington Heights Traffic Lawyer Illinois will lawyer FSLA real estate contract fiduciary rule rumble strips car crashes home inspection lawyer holiday statistics personal injury lawyer bike accident meal breaks Illinois motorcycle accident lawyer severance agreements marijuana Deer Park criminal attorney Des Plaines real estate attorney liability Des Plaines motorcycle accident attorney IRS Barrington medical malpractice lawyers Illinois insurance attorney employee misclassification consent to a search Rolling Meadows estate planning attorney hands free device construction contracts construction accidents trucking accident lawyers medical research sexual harassment unpaid assessment caretaker rights llinois Real Estate Lawyers Association ObamaCare ACA Long Grove estate planning attorneys Buffalo Grove personal injury lawyer Rolling Meadows drug defense attorney caregiver vacation home fines Schaumburg civil litigation attorney insurance attorney Palatine insurance lawyer power of attorney for healthcare defective products Policy Cancellation DGAA icy parking lots Illinois boating accident lawyer Kenilworth estate planning attorneys Schaumburg construction accident lawyer Crystal Lake civil litigation lawyer manufacturing Affordable Care Act natural gas foreclosure cell phone tower data Landlord Tenant Ordinance license revocation