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Sweet Home Chicago: The Pre-Approval Process

So you have decided you want to take that big step and enter into the world of home ownership here in Chicago. With so many options from studio one bedroom condos to single family homes, where do you start? While most people want to immediately start looking at these different properties, the best first step would be to see how much you can afford, both from a lender’s view but more importantly, from your own personal standpoint. The pre-approval process accomplishes this.

Going through this step first can save you time and agony in the future by outlining the price range you should focus on for your home search. The best part is it can take as little as a 15 minute conversation and it is free.

A pre-approval is a review by either a bank or mortgage broker to verify your qualification for a loan at a particular price range. Gathering your personal information such as income, work history, credit score, and asset information and then combining those items with your personal goals allows the lender to help you determine, based on this price point, whether you would be able to obtain a loan.

It is very important to go into the pre-approval process with a few goals already outlined as the lending industry has gotten to a point where most lenders are able to pre-approve individuals for much more then they may be able to personally afford on a monthly basis.

Here are a few of questions you want to think about before going into the process:

1. With all the different property types in Chicago, what type of property am I interested in? (Highrise condo with doorman and workout room, walk up condo with the tree lined neighborhood or that single family home)
2. What is my monthly budget for housing expenses (loan repayment, taxes and insurance or assessments)?
3. How long do I plan on living in this new home?
4. How much am I comfortable putting down for a down payment (if any)?

These questions should give the lender the additional personal guidelines to help determine the appropriate home price range you should be looking at while at the same time keeping you within your personal budget and home preferences.

About Tom Merritt:

After graduating from Miami University with a degree in Accounting, Tom began his career in the Financial Services Industry. In 2001 he began his focus as a loan originator and became a top producer in residential real estate financing.

Tom has continued to build his business based solely on referrals using the business plan that once you become a client, you become a client for life. Because he works directly with individuals to develop a personalized profile of each person’s mortgage needs and financial goals, he is able to recommend and deliver relevant, effective, and attainable financing solutions.

With this personal attention, outstanding service, and competitive financing options to each and every one of his clients. His referral-built clientele is a testament to his ability to meet each client’s goal of home ownership.

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