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


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