FAQ

Typically an underwriter would approve your loan request if your new housing payment did not exceed 32% – 35% of your gross monthly income, and your total debts (including car loans, minimum credit card payments, etc.) did not exceed 42% – 45% of your gross monthly income.
The minimum down payment varies according to loan type.
For example:
Conventional SFR/Condo/CO-OP: 5%
Conventional 2 Flat: 15%
Conventional 3-4 Flat: 20%
FHA SFR/Condo & 2-4 Flat: 3.5%
VA SFR/Condo & 2-4 Flat: Zero%
We sell to as many as twenty different institutions that offer us loans at wholesale rates. We can offer those same loans at a discount to you.
An ARM loan has an initial fixed rate period after which it adjusts (usually annually) according to an index plus a margin. The ARM loan has year-to-year and lifetime caps that provide the borrower with a predetermined maximum interest rate.

The Balloon Mortgage is fixed for a preset time period (usually 5 or 7 years) and then either becomes due in full or may have a refinance provision. There is no rate cap guarantee associated with a Balloon Mortgage.

PMI is an additional insurance required by most lenders if your first mortgage loan exceeds 80% of the lower of the purchase price or appraised value of your home. The insurance fee attempts to equalize the lender’s risk with a similar loan having 20% equity.
Closing costs include but are not limited to fees for appraisal, credit report, tax service, processing, underwriting, document preparation, flood certificate, funding, title insurance, title closing, recording, attorney and transfer tax.
In Illinois, lender escrows are monies collected by the title company at closing to pay for current interest and future real estate taxes, homeowners insurance and PMI (if necessary).
Usually the underwriter needs a copy of your most recent W2, pay stubs for 30 days, and bank or brokerage statements verifying your ownership of the required funds to cover the down payment and/or closing costs and escrows. In addition, if you are self-employed, the most recent two years of federal tax returns (and occasionally corporate tax returns) are required. 
The usual time frame is 2 to 4 weeks.

Speak Directly with a Mortgage Consultant

To fill out an online application, click here, or to speak directly with a mortgage consultant, please call us at 312.642.7979, or email us at info@cfsmortgage.com.

A mortgage consultant will contact you within regular business hours.