Frequently Asked Questions

Getting pre-approved is simple. Fill out our pre-approval form or give us a call. We'll review your financial information and typically provide a pre-approval letter within 24-48 hours. Pre-approval helps you know exactly how much home you can afford and makes your offers more competitive. Use our mortgage calculator to estimate your monthly payment.

The initial pre-approval process typically involves a soft credit check, which doesn't affect your score. When you're ready to formally apply for a loan, we'll do a hard credit inquiry, which may have a small, temporary impact on your score.

Down payment requirements vary by loan type. FHA loans require as little as 3.5%, VA loans offer 0% down for eligible veterans, and conventional loans typically range from 3-20%. Use our mortgage calculator to see how your down payment affects your monthly payment.

The amount you can afford depends on your income, debts, credit score, and down payment. A general rule is that your monthly mortgage payment should be no more than 28-31% of your gross monthly income. Try our mortgage calculator to estimate your payment, or contact us for a personalized assessment.

A mortgage broker like New Market Mortgage shops multiple lenders to find you the best rates and terms, while a bank can only offer their own products. We provide personalized service, access to more loan options, and often better rates. Plus, with 33+ years of experience, we can handle complex situations that banks might decline.

FHA loans are government-backed with lower credit requirements and down payments (3.5%). VA loans are for eligible veterans and offer 0% down with no PMI. Conventional loans are not government-backed but offer competitive rates for qualified borrowers with good credit. Compare all our loan programs.

Private Mortgage Insurance (PMI) protects the lender if you default on your loan. It's typically required on conventional loans when you put down less than 20%. FHA loans have their own mortgage insurance (MIP), and VA loans don't require PMI.

Fixed-rate mortgages offer predictable payments that never change. Adjustable-rate mortgages (ARMs) start with lower rates but can change over time. Fixed rates are great for long-term stability, while ARMs might make sense if you plan to move or refinance within a few years.

A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. In most areas, this limit is $766,550 for 2024. Jumbo loans are used to finance luxury homes or properties in high-cost real estate markets. They typically require higher credit scores and larger down payments.

A $0.00 closing cost mortgage loan is one where the lender pays all or most of your closing costs. At New Market Mortgage, we specialize in $0.00 closing cost mortgage loan refinancing, helping you save thousands of dollars at closing. The trade-off is usually a slightly higher interest rate, but for many buyers, the upfront savings are worth it.

From application to closing, the mortgage process typically takes 30-45 days. Pre-approval can be done in as little as 24-48 hours. See our step-by-step process guide for a full breakdown.

Common documents include: recent pay stubs, W-2s from the last 2 years, bank statements, tax returns (if self-employed), and photo ID. We'll provide a complete checklist based on your specific situation.

At closing, you'll sign the final loan documents, pay your down payment and closing costs, and receive the keys to your new home. We'll prepare you for what to expect and review all documents with you beforehand so there are no surprises.

Yes, once you have an accepted offer on a home, you can lock your interest rate. A rate lock protects you from market fluctuations during the loan process. Rate locks typically last 30-60 days. We'll advise you on the best time to lock based on current market conditions.

Closing costs are fees associated with your mortgage, including appraisal, title insurance, recording fees, and lender fees. They typically range from 2-5% of the loan amount. We'll provide a detailed Loan Estimate so you know exactly what to expect.

Yes, you can pay 'points' to lower your interest rate. One point equals 1% of your loan amount and typically reduces your rate by about 0.25%. This can make sense if you plan to stay in the home long enough to recoup the upfront cost through lower monthly payments.

Our consultation and pre-approval services are free. Loan origination fees and other costs are disclosed upfront in your Loan Estimate. We're committed to transparency with no hidden fees.

In Illinois, closing costs typically range from 2-5% of the loan amount, or roughly $5,000-$15,000 on average. These include lender fees, title insurance, appraisal, attorney fees, recording fees, and prepaid items like property taxes and insurance. Ask us about our $0.00 closing cost mortgage loan refinancing to save thousands.

Yes! FHA, VA, and conventional loans all allow gift funds for down payments. The gift must come from an acceptable source (typically family members) and be properly documented with a gift letter. We'll guide you through the requirements to ensure a smooth process.

Credit requirements vary by loan type. FHA loans may accept scores as low as 580 (or 500 with a larger down payment). VA loans have flexible credit guidelines. Conventional loans typically require 620+. Even if your credit isn't perfect, we can discuss options.

Yes! Self-employed borrowers can qualify for mortgages. You'll typically need to provide 2 years of tax returns to document income. We have experience working with self-employed clients and can guide you through the documentation requirements.

Lenders look at your debt-to-income (DTI) ratio — your monthly debt payments divided by your gross monthly income. Most programs allow up to 43-50% DTI. We'll review your complete financial picture to determine your options.

Yes, there are mortgage options for borrowers with less-than-perfect credit. FHA loans accept scores as low as 580 (or 500 with 10% down). We also work with borrowers who have past bankruptcies, foreclosures, or other credit challenges. Contact us to discuss your specific situation.

Absolutely. Student loans don't disqualify you from getting a mortgage. Lenders will factor your student loan payments into your debt-to-income ratio. We can help you understand how your student loans affect your purchasing power and find the best loan program for your situation.

To improve your credit score: pay all bills on time, reduce credit card balances below 30% of limits, avoid opening new accounts, and check your credit report for errors. Even small improvements can help you qualify for better rates. We can provide specific guidance based on your credit situation.

Illinois offers several programs including IHDA (Illinois Housing Development Authority) down payment assistance, FHA loans with 3.5% down, and conventional loans with as little as 3% down. Read our homebuyer guide for more tips.

This depends on your financial situation, how long you plan to stay, and current market conditions. Generally, if you plan to stay 3+ years and can afford a down payment, buying builds equity and may cost less than renting long-term. We can help you analyze the numbers for your specific situation.

Before applying: check your credit report for errors, save for a down payment, gather financial documents (pay stubs, W-2s, bank statements), avoid major purchases or new credit accounts, and get pre-approved before house hunting. Use our mortgage calculator to estimate what you can afford.

Consider refinancing when interest rates drop significantly (typically 0.5-1% lower than your current rate), your credit has improved, you want to switch from adjustable to fixed rate, you need to access home equity, or you want to remove PMI. We can analyze your situation to determine if refinancing makes sense.

A cash-out refinance replaces your existing mortgage with a new, larger loan and gives you the difference in cash. This allows you to access your home's equity for home improvements, debt consolidation, or other expenses. You'll need sufficient equity and must qualify for the new loan amount.

Yes, refinancing options exist for borrowers with lower credit scores. FHA streamline refinances have flexible credit requirements for existing FHA loans. We can also explore other options based on your specific situation. Contact us to discuss your refinancing goals.