Shopping for Chicago Mortgage Companies With No Overlays

This BLOG On Shopping for Chicago Mortgage Companies With No Overlays Was UPDATED On June 18, 2017

Chicago and its surrounding suburbs has one of the hottest real estate markets in the United States. Chicago is in Cook County and is surrounded by the neighboring counties:

  • Lake
  • Will
  • DuPage
  • McHenry
  • Kane

Chicago and its surrounding counties have higher FHA Loan Limits Chicago than the rest of the state of Illinois.

A mortgage is a loan you take out to finance the purchase of your home. It’s a legal contract stating that you promise to make a monthly payment until your loan is paid off.

How To Begin Shopping For Chicago Mortgage Companies?

Today, there are more than 75,000 lending entities in the United States.

  • Some are very small lending companies and may originate loans only for people in a particular state.
  • There are others that are giant mortgage bankers that work with people all over the country.
  • If you are specifically looking in populated areas such as Chicago, finding local Chicago mortgage companies or lenders like myself is easier, but all this advice can apply to anybody in any state.

Next: What are Mortgage Loan Rates?

Think of your mortgage loan rate as the interest rate, or fee, you are charged to borrow money from your lender.

  • Mortgage loan rates are tied to a particular economic index.
  • How your mortgage rate moves up or down, or whether it moves at all, will depend upon the mortgage loan program you select and which Chicago mortgage companies should you decide to contact and work with.
  • For example, with a fixed rate home loan program your interest rate is fixed for the entire term of your loan.
  • In contrast, with an adjustable rate mortgage loan, your mortgage rate is fixed for a period of time – usually one, three, five or seven years – and then changes based on the index to which it’s tied.
  • The rate on your mortgage loan is expressed as a percentage and interest accumulates over time on the unpaid balance of your loan.
  • Generally speaking, the higher your mortgage loan rate, the larger your monthly mortgage payment.
  • Keep in mind, however, that unlike the interest you pay on a credit card, the interest you pay on your home loan is usually tax deductible.
  • This is one of the reasons that people “roll”, or combine, their credit card debt into their mortgage.

How Important are Credit Scores in qualifying for home loans?

While your credit history is certainly not the only factor lenders and Chicago mortgage companies will take into account, it is very, very important!

  • Consumer credit reports contains a credit risk score, which is an assessment of consumer credit worthiness.
  • Credit bureaus provide risk scores to credit grantors who use them to objectively evaluate applicants’ credit worthiness.
  • Consumers should review their credit report for errors and discrepancies.
  • Bills that have been paid could remain on consumer credit report and might cause lenders to deny the wanted mortgage loan.
  • If there are any inaccuracies, contact each of the three major credit bureaus to have them cleared from your report.

Contact Information To Credit Bureaus

Credit Bureaus keep consumer data and have their own credit scoring models.

Here are the three credit reporting agencies and their contact information:

  1. TransUnion
  2. Experian
  3. Equifax

More About Fixed Rate Mortgage Home Loans

Fixed rate mortgages have a fixed interest rate over the entire term of the loan and are very popular loans that Chicago mortgage companies give out to Illinois home loan seekers.

  • Many people like this type of loan because it offers certainty
  • Interest rate never changes.
  • And, many home buyers believe that a fixed rate loan is the best way for them to pay off their mortgage.

More About Adjustable Rate Mortgage Home Loans (ARM)

  • Adjustable rate mortgages, or ARMs, are mortgage programs that are fixed for an introductory period (typically one, three, five or seven years), but after the fixed period, the rate adjusts based on a pre-determined index by whichever of the Chicago mortgage companies you choose.
  • If the index goes up, so does your interest rate and mortgage payment.
  • Conversely, a drop in the index will reduce your rate and payment.
  • Perhaps the greatest benefit to an ARM is that this type of program usually offers consumers lower initial rates (and therefore, a lower initial monthly mortgage payment) than a comparable fixed rated mortgage.

More About Interest Only Mortgages

  • Fixed rate and adjustable rate mortgages sometimes come with the option to pay only the interest for part of the mortgage term.
  • Sounds too good to be true right? Wrong.
  • The Gustan Cho Team at Nationwide Mortgage is among several Chicago mortgage companies with no lender overlays who can help mortgage borrowers obtain a financially sound plan for paying for your home ownership.
  • An interest only mortgage means you are only required to pay the interest portion of the mortgage payment for an initial period of the loan term.
  • After that, you are required to make the principal and interest payment in full every month.
  • For any given month during this interest only period, the homeowner has the choice whether to pay all of the interest – and then as much or as little of the principal as he or she wants.
  • This is also very popular because it gives the homeowner the flexibility to allocate their money towards other objectives.

So What Chicago Mortgage Companies Offer Best Program?

When selecting a mortgage, it’s very important to choose a program that best fits your particular circumstances and a local Chicago mortgage companies you are comfortable with.

  • Unfortunately, there isn’t one program that is best for everyone.
  • Between your history and past and your goals, there is no one size that fits all when it comes to mortgage loans.
  • A mortgage banker can help you decide which is best for your situation.

Always Do Your Research!

Before you start the mortgage process with one of many Chicago mortgage companies or any kind of house hunting, do some research.

  • The internet is a wonderful resource for countless informative articles that explain the mortgage process in great detail.
  • In fact, many lenders have online mortgage calculators that will answer a variety of tough questions.

Here are the following FAQ:

  • How much money can I borrow? 
  • What is my price range? 
  • What tax savings are associated with home ownership?

Applying For Mortgage Loan With Chicago Mortgage Companies

Once upon a time when home buyers applied for home loans, they had to take time off of work to meet their lenders, fill out reams of paperwork, wait days to find out if they’d been approved for a loan, and then wait weeks to close. Not anymore!

  • Many Chicago mortgage companies and lenders now have online tools that allow you to apply for an online mortgage pre approval letter and (quickly) eventual loan – all from the comfort of your own current home.
  • With new and innovative technology, you can even sign your mortgage documents electronically.

How Do I Find a Reputable Mortgage Banker or Company?

Whether you decide to work with a mortgage banker, credit union or another lending entity, it is crucial to choose a reputable, experienced mortgage professional who is associated with a Chicago mortgage company that isn’t likely to go out of business when rates increase. Since there are thousands of mortgage companies in the United States, selecting a mortgage expert can be challenging. Seek out recommendations from relatives and friends, search the internet, or just call us at 800-900-8569 or email us at gcho@gustancho.com.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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