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Securing a loan for your home purchase

Securing financing is just one part of getting into a new home. Real estate professionals at Rhicafirst are seasoned at helping new and experienced Buyers and Sellers in all areas of your real estate transaction process. Contact us, If your needs include a professional REALTOR® experienced in the real estate industry in Chicagoland. Buying a Home and Applying For Your Loan First and foremost, KNOW WHAT YOU CAN (AND CAN’T) AFFORD. Despite record-low interest rates, buying a home is not for everyone. Homeowner’s insurance premiums tend to be higher than renters insurance premiums. And general upkeep of a home can be more expensive than renting. Another good thing to keep in mind is that no more than 30 percent of your taxable income should go toward your housing. However, if you decide to move forward with the purchase, applying for financing is very distressing for most people, but it doesn't have to be. I've got great connections to a lot of lending companies in Chicagoland, and they've helped me understand some things that can make the loan application process effortless. The following steps provide some insights about how to navigate through the process: 1 – Compose a list of questions about your loan program If you do not totally comprehend the advantages and disadvantages of the various financing options, be sure you bring a list of questions with you. It is often a challenge understanding the differences between fixed and adjustable rate mortgages. I or one of my trusted lenders can assist you with understanding the advantages and disadvantages of both. 2 – Determine when you want to lock Locking in an interest rate means that a lender guarantees the mortgage interest rates for the loan – normally at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day you apply for your loan and at the time of closing. Buyers who prefer to float believe the interest rates will drop in the near future. 3 – Decide if you want to pay additional points to decrease your interest rate If you decide to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at closing or in some cases it can be figured into the loan. Every point should be 1 percent of the mortgage loan. 4 – Bring your paperwork Acquiring a loan requires lots of paperwork, so you should take some time to get all your documents together. Finding the right home at the right price is just one part of a home sale or purchase. Real estate professionals at Rhicafirst are seasoned at helping both buyers and sellers, when it comes to closing. E-mail or call today at 630-618-0941, if your needs include a professional REALTOR® experienced in the real estate industry. What closing costs should you expect? There are certain ordinary expenses associated with closing the sale of a house. These costs are usually split between the buyer and seller. Costs pertaining to your loan to be paid at closing Points (optional) Appraisal Fee Credit Report Interest Payment Escrow Account Taxes commonly paid at closing Property Taxes Transfer Taxes and Recording Fees Insurance fees due at closing Homeowners Insurance Flood or Quake Insurance (optional) Private Mortgage Insurance (PMI) (optional) Title Insurance Sellers: As we get through the details of your transaction, not only will I work to get the very best sales price, but I'll also advocate for reduced closing costs. And once we've come to an agreement, I'll give a detailed list of the closing costs so you are aware of exactly where your money is going. Buyers: If you are buying a property and you apply for a loan, you'll get a "Good Faith Estimate" (GFE) of closing costs within three days or so of submitting your loan application. The estimate is based on the loan officer's past experiences, and is required to be within a reasonable range so you're not surprised when you show up at the closing table. I'll be happy to look at the GFE with you, answering your questions and highlighting any estimates that seem questionable.
21W277 Grove Street Itasca, Illinois 60143
Office: 630-228-0649 Cell: 630-618-0941