Chicago Mortgage Companies With No Lender Overlays

This Article Is About Chicago Mortgage Companies With No Lender Overlays

Chicago and its surrounding suburbs have 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. In this article, we will cover and discuss how to qualify for a mortgage with bad credit and choosing a lender with no overlays.

How To Begin Shopping For Chicago Mortgage Companies?

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 Rates?

Think of your mortgage loan rate as the interest rate, or fee, you are charged to borrow money from your lender. Mortgage rates are tied to particular economic data. How your mortgage rate moves up or down, or whether it moves at all, will depend upon the mortgage loan program you select. Depends on 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, the 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 the mortgage loan is expressed as a percentage. Interest accumulates overtime on the unpaid balance of your loan. Generally speaking, the higher the mortgage rate, the larger the 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

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 contain a credit risk score, which is an assessment of consumer creditworthiness. Credit bureaus provide risk scores to credit grantors who use them to objectively evaluate applicants’ creditworthiness.

Consumers should review their credit reports for errors and discrepancies. Bills that have been paid could remain on the consumer credit reports 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. The interest rate never changes.  Many homebuyers 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 Mortgage Home Loans

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-rate mortgage.

Chicago Mortgage Companies Offering 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. Gustan Cho Associates Mortgage Group is among a very few Chicago mortgage companies with no lender overlays We can help borrowers obtain a financially sound plan for paying for their homeownership.

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 the 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 homeownership?

Applying For Mortgage Loan With Chicago Mortgage Companies

Once upon a time when homebuyers 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?

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 262-716-8151 or text us for a faster response. Or email us at [email protected]

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