Serving the
Chicago Community

Financing Information

Pre-Qualification or Pre-Approval

Once you are planning on buying property you will need a Pre-Qualification or Pre-Approval letter from a lender.


The purpose of Pre-Qualification is:

  • To establish the price range of homes/properties you should be viewing.
  • To estimate the mortgage payment that you'd qualify for.
  • To suggest programs that may allow you to qualify for a more expensive home than you had previously thought.

In order to obtain a Pre-Qual letter, the Loan Officer will request information on: your income, length of employment, credit history, current savings and current financial obligations. No supporting documentation will be requested for you to present.


The purpose of Pre-Approval is:

  • To obtain a loan commitment (with or without conditions).

The Loan Application needs to be filled out by the borrower and all information provided has to be documented.

Borrower to provide the Loan Officer with the following documents: current pay-stubs, W-2s, tax returns, bank statements. Credit report will be obtained and verification of employment done. Additional documentation might be needed: 1040's, list of monthly payments, (credit cards, car or personal loans, etc.). If selling — copy of sales contract, drivers license or state ID.

An application fee is usually requested at the time you apply for Pre-Approval.

Contract for purchase — if already executed.

If applicable, lender may request: filed divorce decree, filed release of judgments, complete bankruptcy papers, paid receipts for all collections, DD214 and Certificate of Eligibility (VA Loans).

Once all needed documents are provided and submitted to the underwriter, loan approval or Pre-Approval letter is issued to qualified borrower.

Do Not Do When Purchasing a Home!

1) Do not change jobs!

Changing jobs before or during the loan process might create a problem in qualifying you for the loan. Most likely problems can occur if the job is in a different field or at a lower salary.

2) Do not make any major purchases!

While you are applying for a loan, it's not a good idea to buy a new car, furniture, etc., which would create an additional monthly payment.

Large monthly payments can affect the amount of loan you qualify for, and at the same time might have an impact on your ability to purchase in a certain price range.

3) Do not pay off your bills!

Unless advised by a loan officer, do not pay off bills to help you qualify for a loan. If such pay-off is necessary, you loan officer will guide you through the process.

4) Do not switch banks!

It's best, while working on obtaining a new loan, not to move money around. Moving the money to a new bank/institution or even creating a new account may cause difficulties and confusion during the verification process.


Agnes Dykstra Mortgage Consultant
American Portfolio Mortgage


Illinois Residential Mortgage Licensee #MB.0005608 / Equal Housing Lender
800 E. Northwest Highway, Suite 821, Palatine, IL 60074
Office: 847.202.3344 I Toll Free: 888.302.2762

Branch Location:
318 Alana Drive
New Lenox, IL 60451
Direct: 815-524-2286
Cell: 708-837-6200
Fax: 815-462-0169
Email: adykstra@GoAPMC.com

Apply Online Today On My Secure Website: www.AgnesDykstra-APM.com

Frequently Used Mortgage Terms

Adjustable Rate Mortgage (ARM)
A type of loan on which payments may be adjusted as frequently as each month, based on changes in the ARM rate index.
The repayment of a debt in a specified number of equal periodic installments that may include a portion of principal and accrued interest.
Appraised Value
The estimated value of a property established by a licensed professional with a knowledge of real estate prices.
Debt-to-Income Ratio
The ratio of monthly debt payments to monthly gross income.
Discount Points
The amount paid either to maintain or lower the interest rate charged. Each point equals 1% of the loan amount (that is, one point on a $100,000 mortgage would equal $1000).
The difference between the fair market value (appraised value) of your home and your outstanding mortgage balance.
Fixed Rate
An interest rate which is fixed for the term of the loan.
FHA Loan
A loan insured by the Department of Housing and Urban Development.
Interest Rate
The periodic charge, expressed as a percentage, for use of credit.
A property lived in by the borrower.
PMI (Private Mortgage Insurance)
An insurance policy offered by a private company to protect the lender against loss on a default loan.
Principal, Interest, Taxes, Insurance — which comprise your mortgage payment.
The amount of the mortgage payment.
Prepayment penalty
A fee paid to the lending institution for paying off a loan prior to the scheduled maturity date.
A process used to either pay off an existing loan or obtain a better interest rate to reduce the borrower's monthly mortgage payment.
Title Insurance
Protection for lenders or homeowners against financial loss resulting from legal defects of the title.
The process of verifying information and approving a loan.
VA Loan
A loan that is partially guaranteed by the Veterans Administration and made by a private lender.


Select Realty, Inc.
8802 W 85TH PL
Phone: 630-985-8540
Email: Homes@SelectRealtyUSA.com
Terms of Use Equal Housing Opportunity
Dream Seekers is Nu Frontiers Enterprises, Inc. technology.
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