Most of the factors that go into the underwriting approval process of an Illinois mortgage application are fairly straightforward–a first-time homebuyer can understand the basics of what is being assessed in their debt, income and credit history.

Before you close on the purchase of your new home and secure a mortgage, it’s a good practice to have the property examined by a licensed Illinois home inspector. Not to be confused with appraisers–who assess a property’s value–home inspectors are trained to review the condition of the property and produce a report that their client can use as a negotiating tool and decision informer.

Homeowners have the option of applying for home equity loans—loans that use the property for collateral as a condition of borrowing. Generally speaking, this is not an option to be undertaken lightly or frivolously…taking out such a loan introduces the risk of foreclosure, should the borrower be unable to make their payments on the loan. Although discouraged, there are some strategies to keep in mind if you’ve decided that the need for the loan matches or exceeds the risks.

Shopping for a new home can be a competitive enterprise; when you find the house that looks like it will be perfect for you and your family, you can bet that there are also a few other potential buyers considering it as well. One of the ways that a buyer can get a leg up over their rivals is by securing a letter of pre-approval from a lender. This letter certifies to a seller that the buyer is a serious candidate to make the purchase, and can put the buyer in control of the bidding war.