Illinois First Time Home Buyer Loans

If you’re a first time home buyer in Illinois, make sure you’re ready to navigate through the home purchase process effectively by researching the steps involved.  Read on for information on first time home buyer loans and resource in Illinois.

Illinois First Time Home Buyer Information

The home purchase process is not complicated, though it can easily become confusing when you aren’t sure what steps to take.  Our first time home buyer checklist will help eliminate the uncertainty by showing you when and how to complete each part of the process.  The five most crucial steps are outlined here.

• Determine how much money you need.  This may seem like a simple step, and it can be.  But don’t take it lightly.  Decide how much of your income you can devote to your mortgage payment and work backward from there to find the size of loan that you’re able to borrow.
• Get to know each of the mortgage types available.  A mortgage isn’t a standardized product.  There are many different loan types you can choose from, including the FHA mortgage program, which offers unique advantages to first time home buyers.
• Repair your credit, if you need to.  Make sure you know your credit score and make sure it’s strong.  A poor credit score will get you a high interest rate on your loan, which could cost you tens of thousands of dollars more.
• Contact at least four or five lenders in your area.  Don’t just step into the bank and ask for a loan.  Research as many lenders in your area as possible and compare the mortgage rates they offer.  Pick the one that offers the best deal.
• Get preapproved before you start searching for a home.  Preapproval is a process that allows you to rely on the lender’s assurance that your loan will be funded when you need it.  This allows you to search for a home with confidence.

These five steps simplify the mortgage process into its most basic form.  If you follow these steps, you should be in good shape.  But take the time to read through our checklist for a bigger picture of the process.

If you want to find out what you’ll likely have to pay each month with your new mortgage, use the mortgage calculator below.

1st Time Home Buyer Loan Programs

First time home buyers can qualify for the specialized Illinois FHA loan program.  FHA loans are backed by the Federal Housing Administration.  The goal of the FHA is to ensure that homebuyers without perfect credit and high income can still purchase the homes they need.

One benefit of the program is the low down payment requirement.  You won’t have to supply tens of thousands of dollars simply to secure the loan and the home.  Instead, you’ll only need to pay 3.5% of the purchase price at closing.  This is especially beneficial for homebuyers who can’t draw on equity from past homes to fund their purchases.

The FHA won’t allow you to borrow an infinite amount of money on these terms, though.  Find out whether the loan amount you need fits within the Illinois FHA loan limits for your county.

For additional information, check out the Illinois page of the FHA website.

About Illinois

Illinois, home to Chicago, one of the more famous cities in the United States, boasts a homeownership rate of 67.3% and a median home price of $130,800. Illinois is the most populated state in the midwestern US and has close ties to national history.  Famous residents who have resided there in the past include Abraham Lincoln and Ulysses S. Grant.

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