Search Chicago MLS
I Want To Buy!
Choosing your Agent
Getting a Mortgage
Mortgage Application Checklist
Countdown to Closing

Talk about a big ticket item!

Buying a home will launch you into a whirlwind of activity with lasting personal and financial impact.  Done right, you'll achieve not only your perfect dream home, but also a sound investment for your future. 

It's never been more important to be an informed buyer.  Maureen Moran can help with vital information and expert guidance each step of the way.

Market news you can use from Realty Times 

Getting a mortgage is an often-tedious process that will have a long-term financial effect on your future.  The effort you put into it will help to ensure you qualify for the home you want - and can afford to enjoy it.

Step 1: Examine Your Finances
To determine if you can afford a home's selling price, you must also determine how much mortgage you can afford.Lenders are apt to put your loan application in the best light and qualify you for as much as they are willing to lend, which can be more than you can afford or want to spend.

It's up to you to take stock of your income and expenses, both current and projected, to determine what you can comfortably manage each month. Along with your mortgage payment, don't forget related insurance, taxes, homeowner association dues and any other costs that might be rolled into the mortgage payment.

Step 2: Shop for a Loan
When you are ready to shop for a loan you have two basic types of mortgage stores to shop -- direct lenders and mortgage brokers.

Direct lenders have money to lend. They make the final decision on your application. Brokers are intermediaries who, like you, have many lenders from which to choose. Lenders have a limited number of in-house loans available. Brokers can shop many lenders for each lenders' store of loans. If you have special financing needs and can't find a lender to suit them, an experienced broker may be able to ferret out the loan you need.

Along with shopping the source, you'll also have to shop loan costs, including the interest rate, broker fees, points (each point is one percent of the amount you borrow), prepayment penalties, the loan term, application fees, credit report fee, appraisal and a host of others.

Step 3: Apply For a Loan
The application process is the easy part -- provided you've gathered the documents necessary to prove the claims you make on the application (see teh Mortgage Application Checklist below for a general list of requirements).

What counts as Income?

• Full-time employment, two years tenure
• Part-time employment if steady for two years and expected to continue
• Overtime and bonus income that has occured for two years and which is expected to continue (Lender will average)
• Raises guaranteed to occur within 60 days of loan closing
• Retirement income
• Military income
• Veteran's benefits
• Social Security
• Alimony/child support
• Notes receivable
• Interest and dividend/trust income
• Unemployment benefits
• Rental income
• Auto allowance

Print this article