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

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

Archive