Mortgage FAQ | Ryan Skaggs, NMLS #425763
Mortgage questions, answered for Northbrook & Northshore buyers & homeowners.
Straight answers about buying a home, refinancing and home equity.
Common questions
What does the home buying process look like, step by step?
Most home purchases follow the same steps:
Get pre-approved so you know your budget.
Start your home search with a real estate agent.
Make an offer. Your pre-approval letter goes with it.
Once the seller accepts, sign the contract and schedule your home inspection.
Complete your full loan application and submit your documents.
Your lender orders an appraisal while underwriting reviews your file.
Receive your Closing Disclosure, which shows your final costs, at least three days before closing.
Close, sign the paperwork, and receive your keys.
How much do I need for a down payment?
It depends on the loan program, the home and your finances. Some programs are built for buyers who have not saved much yet. Ask to see your options side by side, with the full terms of each, before you choose.
What credit score do I need?
Each loan program sets its own minimum, and lenders can set their own on top. A lower score can still work with the right program. The quickest way to know where you stand is a short conversation and, with your permission, a credit check.
Will looking at my options hurt my credit?
A conversation about your options does not touch your credit. Your credit is checked only when you apply, and only with your permission.
What documents will I need?
Usually recent pay stubs, W-2s or tax returns, bank statements and a photo ID. Self-employed borrowers often use tax returns or bank statements in place of pay stubs. You get a checklist made for your situation.
How long does it take to close?
It depends on the loan, the property and how quickly the paperwork comes together. You get a timeline at the start and an update at every step, so you always know what comes next.
What Illinois down payment assistance programs exist, and who qualifies?
Illinois offers down payment assistance through the Illinois Housing Development Authority (IHDA), and some lenders, including New American Funding, offer their own programs. These programs may provide money toward your down payment and closing costs. Depending on the program, the help may be a grant you don’t repay, a forgivable loan, or a loan repaid over time. Qualifications and policies change. Set up a call to better understand what programs would work for your scenario.
How much house can I afford?
The amount you can afford depends on your income, your monthly debts, your down payment, your credit, and the interest rate when you buy. Lenders often compare your total monthly debt payments to your monthly income, called your debt-to-income ratio, to decide how much you can borrow.
What you are approved for and what feels comfortable are two different numbers. Your monthly payment includes principal, interest, property taxes, homeowners insurance, and possibly mortgage insurance. On the North Shore, property taxes can be a large part of that payment, so they matter when you set a budget.
How much are property taxes if I am buying in suburbs of Chicago?
Property taxes in Cook County and collar counties around Chicago are higher than in most of the country, and they are a large part of your monthly payment. Across the county, they typically run about 1.5% to 2.5% of a home’s value each year. Rates vary by town and by taxing district, so two homes in the same town can have different bills.
As an example, a $600,000 home taxed at 1.5% to 2.0% would cost about $9,000 to $12,000 a year, or $750 to $1,000 a month. Exemptions, like the homeowner exemption, can lower your bill.
Before you make an offer, check the home’s most recent tax bill on the County Treasurer’s website. Ryan will include taxes in your monthly payment estimate, so you know your true cost up front
Can I get a mortgage if I am self-employed?
Self-employed buyers have several options. Along with loans based on tax returns, some programs look at the deposits in your bank statements instead. Lenders look for a steady history of self-employment income.
What are closing costs?
The fees and prepaid items due when your loan closes, such as the appraisal, title insurance, recording fees and the first months of taxes and insurance. You see them on your Loan Estimate soon after you apply, and on your Closing Disclosure before you sign.
Who can use a VA loan?
Veterans, service members and some surviving spouses, through a program backed by the Department of Veterans Affairs. It has benefits other loans do not, and you need a Certificate of Eligibility, which your lender can help you get.
The North Shore
Ryan Skaggs and the Mortgage Professor team help North Shore buyers and homeowners purchase, refinance, and use their home equity. We explain your options in plain English and show them side by side, so you know your costs before you make an offer. Our office is at 400 Skokie Blvd, 100, Northbrook.
NorthbrookNorthbrook is mostly single-family homes, and prices vary widely by neighborhood and lot. Condos and townhomes sit well below the single-family range, which gives first-time buyers more entry points. 
GlenviewGlenview offers a similar mix of single-family homes, townhomes, and condos. Prices and lot sizes vary by neighborhood, with newer areas often on smaller lots and older areas on larger ones. 
EvanstonEvanston has more variety than most North Shore towns, including single-family homes, condos, and two- to four-unit buildings. Many homes are older, and lot sizes vary a great deal by neighborhood. 
Lake ForestLake Forest is known for larger homes, many on larger lots, and the price range is wide. Many purchases here involve jumbo financing, meaning a loan above standard conforming limits.
GlencoeGlencoe is mostly single-family homes, and lot sizes and prices vary by location. Larger purchases may involve jumbo financing, which has its own guidelines.
WinnetkaWinnetka is mostly single-family homes, with many on larger or established lots. Prices vary widely by neighborhood, and many purchases involve jumbo financing.
DeerfieldDeerfield offers a mix of single-family homes, townhomes, and condos, and lot sizes vary by neighborhood. That range gives buyers at different budgets more options than in some nearby towns. 
Highland ParkHighland Park has a wide mix of homes, from condos and townhomes to larger single-family homes on bigger lots, and prices vary a great deal by area. Depending on the price, you may need a jumbo loans.