What Are The Steps In Getting Mortgage Approval Illinois

This ARTICLE On What Are The Steps In Getting Mortgage Approval Illinois Was UPDATED On July 8, 2017

There are Steps In Getting Mortgage Approval. It starts with consulting with a loan officer. Mortgage Loan Applicants first few Steps In Getting Mortgage Approval starts with consulting with a loan officer. Borrowers need to complete a 4 page mortgage loan application, called the 1003. They need to provide documents such as two years tax returns, two years W2s, and 30 days paycheck stubs.

  • Even home buyers with very bad credit can qualify for a mortgage loan in. 
  • Home buyers can qualify for mortgage after bankruptcy, foreclosure, collections, and prior bad credit.
  • Borrowers with recent late payments may need to wait until they have timely payments for past 12 months before they can qualify for mortgage.
  • There are times where borrowers can qualify for a mortgage loan with some quick credit fixes.
  • Basic credit repair may be as simple as paying down credit card balances or adding new credit.
  • Higher credit scores yields favorable mortgage rates and terms.

Steps In Getting Mortgage Approval With Prior Bankruptcy And Foreclosure

For those folks who have bankruptcies and/or foreclosures, there are federally mandated waiting periods before they will be eligible to qualify for a mortgage loan.

  • There is a two year waiting period after Chapter 7 Bankruptcy discharged date to qualify for FHA, VA, USDA Loans.
  • Waiting periods to qualify for FHA, USDA Loans after foreclosure, deed in lieu of foreclosure, short sale is three years.
  • There is a two year waiting period to qualify for VA Loans after deed in lieu of foreclosure, foreclosure, and short sale.
  • The waiting period start clock after deed in lieu of foreclosure and/or foreclosure start from the date of the sheriff’s sale or the date the deed was transferred out of the homeowners name into the bank’s name.
  • There is no waiting period to qualify for mortgage after bankruptcy, foreclosure, deed in lieu, short sale with NON-QM Loans.
  • NON-QM Loans require 20% down payment.
  • Bank Statement Loans are back.
  • Banks Statement Mortgage Loans are for self employed borrowers.
  • No tax returns are needed to qualify.
  • Bank Deposits are averaged over the past 24 months and that is what is used as income.

Mortgage Loan Program Requirements

  • Minimum credit score of 500 FICO to qualify for FHA Loans and VA Loans. 
  • For those with credit scores between 500 and 580, 10% down payment is required on FHA Loans. 
  • 3.5% down payment for home buyers who have credit scores higher than 580 on FHA Loans.
  • Open collections and charge off accounts are okay without needing to pay the outstanding balance with FHA and VA Loans as long as AUS renders an approve/eligible.
  • Mandatory 1 year waiting period for those home buyers who have filed Chapter 13 bankruptcy and are in good standing to qualify for FHA and VA Loans.
  • No Waiting Period Requirements after Chapter 13 Bankruptcy discharged date on FHA, VA, USDA Loans.
  • 2 Year Waiting Period requirement after Chapter 13 Bankruptcy discharged date to qualify on Conventional Loans.
  • Debt to income ratio can be as high as 46.9% front end and 56.9% back end DTI.
  • 4 year waiting period for home buyers who had a prior short sale or a deed in lieu of foreclosure on a 5% down payment conventional mortgage loan.
  • 7 Year Waiting Period after foreclosure to qualify for conventional loans.
  • Gaps of employment allowed.
  • Borrowers can be laid off up to 6 months and still qualify for a mortgage loan. 
  • Borrowers who have been unemployed more than six months, there is a six month waiting period before being eligible to qualify for a mortgage loan.
  • Judgments okay if a payment plan has been in effect for 3 months or judgment has been paid off.
  • Judgments can be paid off prior to closing.
  • Tax liens are okay if the home mortgage loan borrower has entered into a payment agreement with the IRS.
  • 80/10/10 mortgage Piggy-Back mortgage loan programs available to avoid paying mortgage insurance premium. 
  • 10% down payment, 10% second mortgage, 80% first mortgage.
  • 10% down payment on jumbo mortgages.
  • Jumbo Loans and super jumbo loans up to $5 million via hedge fund financing. 
  • Over $5 million dollar homes are evaluated on a case by case scenario.
  • Condo Hotel mortgage loans nationwide.
  • Commercial mortgage loans nationwide with Capital Network Group Inc.

Mortgage borrowers who have been rejected for a mortgage loan at a bank or another mortgage banker/broker due to their overlays, please contact us at  262-716-8151 or email at gcho@gustancho.com.

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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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