Home Loans In Naperville, Illinois 

Named after Joseph Naper, an early Illinois pioneer, the City of Naperville is home to one of the four largest carillons in the world, the Millennium Carillon in Moser Tower. The city is also the best place for aspiring athletes since three Olympic gold medalists hail from Naperville. 

In recent rankings by Money.com, Naperville was listed among the 50 Best Places to Live in the United States. 

If you’re like most people, owning your dream home in Naperville starts with obtaining the right home loan. Buying a house requires a substantial financial commitment, and unless you have hundreds of thousands of dollars ready to spend, you’ll likely need assistance with financing. 

Because of the considerable amounts involved, home loans tend to have stringent qualification requirements. Here’s what you need to know. 

Qualifying For A Home Loan In Naperville

Satisfying these mortgage requirements increases your chances of securing the loan:

• Income and Employment

Stable flow of income (i.e., streams that continue for at least two years) increases the chances of approval. You can present your payslips and latest income tax returns as proof of income. Employment is also a related factor here. 

Income for self-employed individuals may not be stable, such as business profits or commission income. Showing your practice’s financial statements or bank statements for the last two years can be proof of steady income.

• Credit Score

Your FICO score is the representation of your creditworthiness as a borrower. If you have a score of 620 or higher, you can qualify for most mortgage products. Individuals with scores lower than 620 may be able to get an FHA loan. 

• Assets

Asset reserves can tilt the decision even if you don’t have a stable income. Assets like land, stock investments, and mutual funds can make your borrower profile look less risky to lenders. Significant cash reserves can convince the lender that you have enough funds to cover the loan in case of insolvency.

• Debt-to-income Ratio

The DTI is the ratio of monthly debt obligations over your total monthly gross income. A healthy DTI is around 36% to 43%, but lenders have different standards. As a good borrowing practice, keep your DTI as low as possible by consistently paying debts as they come due.

• Mortgage Insurance

Mortgage insurance often comes into play when you cannot raise a sizable down payment (less than 20%) for Conventional loans. Insurance increases your monthly payments, so it’s important to factor this in when planning your home loan application. 

Naperville, Illinois Mortgage Lender

Capital Home Mortgage is the trusted lender to call for home loans in Naperville, IL. We provide a wide range of mortgage products to meet different borrower requirements. 

For instance, you can obtain an FHA home loan if you’re a first-time borrower since it is more accessible to people with lower credit scores and down payments. On the other hand, if you have a strong credit profile and want to buy a high-end property, we offer Jumbo loans to help you seal the deal. 

As direct mortgage lenders, we control every aspect of the Naperville home loan process. This means from application to funding, we’re here to provide all the assistance you need. Since we also fund the mortgages, we can offer competitive interest rates and convenient underwriting policies.

Get A Home Loan In Naperville

You’re only one call away from buying your dream home in Naperville. Contact our mortgage experts at (630) 339-3388 to get started with a no-obligation quote for your loan.