Cook Mortgage Rates

Mortgages in Cook County

Once you begin the mortgage and home buying process, you will realize that you need a pre-qualification or a pre-approval for a mortgage to secure home. Although they sound the same, and some real estate agents use them interchangeably, they are two very different things. A pre-qualification allows the borrower to determine how much home they can afford. This often helps in the process of home shopping. A pre-qualification begins when a borrower contacts a lender and gives them basic information about their financial situation. Information the lender requires varies, but it is typically income, outstanding debts, and other loans. The bank then determines how much home you can afford or how large of a mortgage they will lend you. Usually you will receive a letter from the bank to pass on to your real estate agent or the seller. A pre-qualification is more useful to the home buyer than anyone else. Because a pre-qualification does not require a verification process by the lender, it is by no means a guarantee that a mortgage will be approved. A pre-approval is similar to a pre-qualification but holds more weight in the real estate market. To get a pre-approval, a bank will ask all the same questions they would for a pre-qualification. Once the information is gathered, the bank will go about verifying the information. This means that will run a credit report, verify your income, and pass the information to an underwriter. Once you have met all the necessary criteria, they will pre-approve you for a specific mortgage amount. This pre-approval letter is a guaranteed mortgage as long as the home you choose meets the specified criteria and passes inspection. Once you have a pre-approval, the rest of the mortgage process is simple.

Cook County Home Equity Loans

When choosing a home equity loan, it is important to know the two main types available to you. There is a home equity term loan and a home equity line of credit (HELOC). A term loan is a lump-sum loan with a fixed term and may have a variable or fixed rate. This type of home equity loan is good for debt consolidation because it typically offers a low rate and a fixed payment. A HELOC is a line of available credit extended to you based on the equity in your home. It operates similar to a credit card but typically has a lower interest. As long as the line is open and active, you are only required to make minimum monthly payments. Lines of credit are perfect for the home owner who may have some expenses stretched over a larger period of time such as college education or a home remodel.

Cook County Loan Modifications

Since the mortgage crisis began, consumers and the government alike have been talking about loan modifications. If you are like the average consumer, you don’t even know what they are. A loan modification is an agreement between a lender and borrower to alter the original promissory note between the two. To qualify for a modification, most lenders require the home owner to be in financial distress. If you can prove that you are in financial hardship, then the lender will try to negotiate a solution to make your mortgage payments manageable. The lender may do anything from reducing your principle balance to lowering your interest rate to result in a lower payment.