What to Know Before You Start Applying for Chicago Home Loans

Financial Services

Before you start applying for a mortgage to purchase a new home, there are several things you need to know about Chicago home loans. By doing a little work upfront, you can save time and frustration during the mortgage application process.

Know How Much House You can Afford

There is no point in trying to buy a house that you can’t get a mortgage for, so before you start looking, you will want to determine how much house you can afford. There are online mortgage calculators that will help you figure it out. Just be sure to include your taxes and insurance costs as well.

Understanding the Lingo

Like most specialties in life, mortgages have their own language. It is a good idea to learn the lingo before you start applying. That way when your loan officer starts talking about points or fixed-rate and adjustable rate loans you’ll know what they are talking about, and you’ll be able to make a better decision for your specific situation.

Watch Your Credit Score

May things can affect your credit score, but if you are looking for Chicago home loans, be sure not to open or close any credit accounts you have leading up to applying for your mortgage. Both of these activities can lower your credit score.

Keep Your Current Job

Mortgage companies are looking for job stability in their applicants. That means being at your current job for at least two years. If you have been job hopping it can be very difficult, if not impossible, to be approved for Chicago home loans.

Keep Your Bills Current

If you have a habit of paying your bills late, you will need to change that habit before you start looking for a mortgage. Late payments will reduce your credit score. This could mean paying a higher interest rate on your new loan or not being approved at all.

Buying a new home can be an exciting time, so the last thing you want is to have an unpleasant experience when applying for a mortgage. By being proactive and following these five tips, applying for and receiving Chicago home loans should be a smooth and easy process. Then you and your family can just sit back and relax and enjoy your new home.

Source

http://money.usnews.com/money/personal-finance/articles/2014/10/24/a-guide-to-getting-your-first-mortgage