Once you’ve chosen a Realtor to represent you, the next step is to get a mortgage preapproval. We won’t submit an offer without it. Preapproval helps you (and us) understand what you can comfortably afford, likely monthly payments, the interest rate you qualify for, and estimated taxes/insurance. Read this quick mortgage guide to demystify the process.
A great lender makes the transaction smooth; a poor one can jeopardize timing, pricing, and even approval. Compare options and work with proven pros—see our recommended lenders.
Paperwork You’ll Likely Need
Requirements vary by lender, but be prepared to provide:
- Completed mortgage application (provided by your lender)
- Most recent 2 months (or latest quarter) of asset statements (checking, savings, 401(k), IRA, brokerage, etc.)
- 2 recent pay stubs (W-2 employees)
- Last 2 years of W-2s
- Last 2 years of U.S. tax returns
- If self-employed and you own >25%: last 2 years of business tax returns
Getting Your Preapproval Letter
After submitting docs, most buyers receive a preapproval letter in about 2–3 business days. Your lender may request additional documentation (normal—underwriting standards are strict). Ask your lender to show what the approved amount means as a monthly payment including principal/interest, estimated taxes, insurance, and any PMI. Once received, forward your letter to us so we’re ready to write when the right property hits the market.
Ask About Assistance: Illinois offers down-payment/closing-cost programs. If any interest you, talk with your lender about eligibility and next steps.
Loan Estimate & Understanding Closing Costs
Your lender will provide a Loan Estimate (LE) with projected fees and cash needed to close (on top of your down payment). A good rule of thumb is about ~2.5% of the purchase price for closing costs (varies by loan type and location). Example: buying at $500,000 with 20% down means $100,000 down plus roughly $12,500 in closing costs—about $112,500 cash due at closing (appraisal/inspection are typically paid when those occur).
Should You Shop Your Loan?
Absolutely. Fees and rates vary. For cleaner comparisons:
- Have competing lenders pull credit on the same day (minimizes score impact).
- Compare rates and costs on the same day (rates can change daily—even intraday).
- Ask each lender for a side-by-side of rate + points + fees at the same lock period.
Questions about preapproval? Call us at 618-799-9205 or email Jean@jeanlewishomes.com.