Tuesday, January 15, 2008

How to Get a Mortgage in Illinois


Do you want to get your hands on a beautiful home in the state of Illinois? If so, it would be wise for you to get a good mortgage loan. The procedure for getting a home loan at a reasonable rate is not that difficult. Sure, it will take some time and energy but it will be worth it in the end. Here are the steps to getting an Illinois home mortgage loan.


Difficulty: Moderately Easy



Step One

Get a copy of your credit report and be sure there are no inaccuracies.

Step Two

Investigate different types of Illinois housing loans available from a variety of lenders like credit unions, mortgage brokers (individuals and agencies that arrange financing from a variety of lenders), online mortgage lenders and banks. By comparing more than one lender, you can shop around for the best deals and rates.

Step Three

Be knowledgeable of state and local lending laws that apply to predatory lenders (lenders that intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit). Know that in Illinois, mortgage brokers are required to be licensed. In addition, they must have three years experience, and hold a $100,000 fidelity bond and a $20,000 surety bond. Ask for proof of their license.

Step Four

Illinois has the "Illinois Fairness in Lending Act" that requires lenders to engage in fair and reasonable lending practices. Illinois also has the "Residential Real Property Disclosure Report" that requires sellers to disclose certain conditions of the property such as leakage, defects, unsafe conditions, etc. to potential buyers.

Step Five

Research various federal and Illinois loan programs, which are offered to low-income buyers, veterans, disabled, single parents, senior citizens, and rural home buyers, such as the Community I-Loan, Affordable Housing Trust Fund, and the Rural Guarantee Housing Initiative Program.

Step Six

Apply to get pre-qualified for the loan from your selected lender. Don't forget to bring all the necessary paperwork which includes proof of employment, tax returns, and investment information among others.

Step Seven

Find a good realtor, and begin looking at homes in your price range.

Step Eight

Complete a full mortgage application with the lender, and issue a formal offer for your desired home.

Step Nine

Pay the closing costs and all related attorney and realtor fees. The lender will pay the home owner or other banking institution for the home, and then you will begin payments to the lender.

No comments: