Finding The Right Mortgage in Chicago
Finding the right solution for your mortgage needs can be an overwhelming task. Because it is likely the largest and most consequential financial decision that you’ll ever make, understanding your options is important.
For example, according to Chicago Magazine, the median single-family home in Logan Square sold for $512,000 in 2013. Homes in West Town, where our offices are located, sold for an average of $690,000 in 2013, an increase of 26% from the previous year! With these prices, a typical mortgage in these Chicago neighborhoods is likely $300,000 to $500,000 dollars.
Clearly, determining the home mortgage that is right for you is something that should be done with care and consideration. So, where should you begin?
Educate Yourself on the Options
Having helped homeowners find the right mortgage for over 20 years, we have fairly strong opinions about the best way to begin the journey. The first step is to educate yourself about the types of loans that exist.
The Mortgage Loan Basics
There are dozens of excellent resources that can help you understand loan basics and I have included some of my favorites below. Essentially, there are two basic loan types – fixed rate and adjustable rate mortgages. Fixed rate mortgages have the same interest rate for the life of the loan. Adjustable rate mortgages typically start with a lower short-term interest rate for a period of one to five years and then the rate fluctuates for the remainder of the loan term based on an indexed interest rate.
Both have their advantages, depending on your financial situation and how you manage your investments. For example, for those who are bumping up against the PITI payment ceiling, an adjustable rate mortgage might provide more buying capacity in the short term. Conversely, if you believe that interest rates will rise significantly in the future, a fixed rate mortgage can protect you from increases in interest cost.
Federal Reserve Guide to Mortgage Products PDF (Requires email address)
Freddie Mac Step-by-Step Mortgage Guide PDF (Requires email address)
The Case for Choosing a Mortgage Professional Before You Choose Your Mortgage
Once educated with a basic understanding of mortgage options, Team Beata Bukowski suggests you invest the time and effort to find a mortgage advisor whom you can trust to guide you through the process. Just as you would hire a financial advisor before you invest in stocks, so too we believe you should choose a mortgage advisor before you purchase a mortgage.
While there are some financially savvy consumers that could compare dozens of different mortgage variations from numerous lenders, most consumers don’t have the time or knowledge to make the best decision. We believe that an exceptional mortgage broker can maximize a home buyer’s choices while minimizing risk and potentially saving tens of thousands of dollars over the life of the loan.
How Mortgage Lenders Earn Compensation
Let’s begin with a frank discussion about how lenders do and don’t earn compensation. First, it will come as no surprise that our compensation is based on successfully finding and securing the right mortgage for you. If Fairway is unsuccessful in finding a mortgage for which you’re qualified, we earn nothing.
Second, in the State of Illinois, lenders are required to disclose up front what their fees will be, insuring transparency to the financial relationship.
Third, lenders are forbidden by law – and we have ALWAYS been by conscience – to receive compensation for steering consumers into certain types of loans that might be considered risky. Prior to the SAFE Mortgage Licensing Act of 2008, some unscrupulous lenders preyed upon consumers, maneuvering them into loans that they couldn’t afford.
Those of us who cared about our clients and our profession understood that this strategy was not only unconscionable, but extremely short-sighted. Over 80% of our business has always come from referrals. Doing right by previous customers is the only way to insure that we will always have new customers.
With continuing education and licensing requirements in place, consumers can be much more confident in the quality of advice from mortgage professionals. In fact, the number of lenders have been reduced by over half since 2006. It’s a testimony to the fact that those who wish to be successful in this profession must be knowledgeable and most of all, trustworthy.
How Mortgage Lenders Add Value to a Relationship
Like any thoughtful counselor, the best lenders bring an in-depth knowledge of the market, an understanding of all mortgage options; and relationships with banks, credit unions and other lending institutions.
Fairway has access to multiple products, with a variety of mortgages, rates, and qualifications. We also have fast turn times and get you qualified quickly and with a great rate.
Think of it this way. If we can save you two-tenths of 1% on a $200,000, 30-year mortgage, that translates into a $12,000 savings over the life of a loan!
Our knowledge and experience ensures that we can quickly handle all of the paperwork that goes with closing of your loan. We know your time is precious and it’s our job to save you time and frustration, and also insure that any bumps in the road hopefully don’t scuttle or delay your approval.
What Makes Team Bukowski Unique?
At Team Beata Bukowski we take the time to understand your financial needs in a personal way. This allows us to leverage our 20 years of knowledge and experience for your benefit. By embracing both your current financial situation and prospects we can help you make smart mortgage choices that will protect and enhance your future.
For example, a dual wage-earning couple might want to consider how enlarging their family could change their financial future. We listen to your dreams and aspirations so that we can provide mortgage options that offer the maximum flexibility.
Our hallmarks have always been trust, honesty, and compassion. Thousands of families have entrusted us with helping them to make the most important financial decision of their lives – the purchase of a mortgage. We take that obligation seriously and thus always straight-forward feedback and advice. Thankfully, most of the time we can share good news, but sometimes we must tell a client that they cannot qualify for a mortgage, at least not today. In either case, we’ll provide a straight, honest answer.
And that’s where the compassion comes in. We don’t judge anyone based on financial problems of the past or changes in personal situations that might be uncomfortable to discuss. Our goal is to help you to secure a proper mortgage if not today, then sometime in the near future. We’ll work with you to repair the problems that are keeping lenders at bay and with planning and discipline, together we’ll earn your way back into the home of your dreams!