DGAA bLAWg

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


Tags

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

Archive