Obtaining the ideal Chicago Mortgage for your new condo takes a little work.
You want to find the lender who is serious about getting the very best deal for your Chicago condo mortgage!
I hope you know that all lenders are not the same! There are big differences in lenders and in Chicago Mortgage loans.
You don't want to find after you're locked in that your mortgage is going to cost you hundreds or thousands more than it should!
First of all: Shop around. Do not take the first offer. Compare a few and find out what a good, fair deal looks like.
Pre-Approval is the Key
You want to be pre-approved (not just pre-qualified) before you go serious condo shopping.
Why? Because once find that dream condo, you want to make an offer. And, you need a pre-approved loan amount to do that.
To pre-approve you, your lender will conduct a very careful examination of your financial situation. He or she wants to determine if you can take on a long-term debt such as a mortgage.
Your objective is to obtain a loan guarantee in writing and a locked-in rate that gives you enough time to find your new condo and make your offer. (Lock-in periods of 30 or 60 days are common.)
1. Do your homework on the different loans and mortgage types. Any lender you are considering working with should be willing and able to explain anything that is not clear and make sure all your questions are answered. It won't get any clearer; if you don't understand, don't sign.
2. Realize that fees and costs will vary - sometimes by hundreds of dollars. Get written actuals, not estimates, from each lender you talk with.
3. Find out how you can save on costs and even do away with a down payment. The lender you want to choose should bring this up before you have to ask. Read up on some of the ways you can cut costs. before you start your lender interviews.
If this seems like a lot of work, trust me. It is worth it. You will be happy when you realize you have selected a lender who is in your corner and working to help you get the best mortgage you can.
If you are stumped on how to get started:
Talk to one or more of these three companies. We have know and worked with them for a long time.
You can be sure we would not want to be affiliated with anyone who didn't treat our customers fair and square. All of these companies are very above aboard and very hard workers. If they offer you a good deal, believe me, it will be a good deal. They know all the ways you can save and they won't be shy in sharing them with you.
Of course, it is up to you to carefully research any lender you are going to select. I suggest you talk with all of them so you are able to adequately compare rates, fees and services.
In case you are also planning to talk with a few other people:
Here are a few things to watch out for from some of the other guys:
1. You know that rate that seems to good to be real? Check the fees! Bet you will find they are pretty high. Lowest rate is not all you should be looking for.
2. You may see a great rate in a newspaper ad or on-line. Chances are it will NOT BE THERE when you call or respond. Be careful they don't lock you in to a higher rate before you can say "No thanks." A similar trick is the low rate quoted on the phone that mysteriously disappears' by the time your paperwork is done. If your lender will not lock in that phone rate, hang up and keep dialing.
3. As I said before, fees can vary all over the place. You need to compare each lender's fees before you can make an informed choice. This is worth repeating: Do not accept "estimates." Get actual fees in writing. compare before you make a decision. And don't settle for "estimates." You want a guarantee that fees won't be higher by the time you get to closing.
4. Be wary of lenders who count on you not knowing all the right questions. Their fees might seem low because they did not tell you about the other fees you will have to pay such as transfer fees, and fees to the closing agent. You want to feel that your lender is helping you be a smart buyer, not keeping you in the dark so they can collect higher fees!
5. It is generally NOT in your interest to get near closing before you lock in. A lender who says otherwise is not being straight withy you. Lock-in your rate at the time you get pre-approved. If you wait until closing, your lender can pull out a higher rate and you are stuck because there is no time to switch lenders.
Finding and purchasing your Chicago condo is exciting. And it's a big commitment. It is certainly worth the upfront effort to find that right lender and secure a mortgage you can live with happily ever after.