Prior to signing a sales contract on a home, contact Midwest Bank to pre-qualify you. If you are interested in purchasing an existing Illinois home, it must fall within certain purchase price limits.

First Time Home Buyer

• You must be a first-time homebuyer. This means you have not owned a home as a principle residence in the preceding three years. Present ownership of rental property, vacation or a time-share does not disqualify you. You will need to supply signed copies of your last three years federal income tax returns to verify eligibility.
• Your annual gross household income (from all sources and all individuals who will be residing in the property) may not exceed the maximum limits for the county in which the residence is located. These limits vary by number of persons in the household.
• Your income must be sufficient to support a mortgage payment. To determine this, apply the following rules of thumb. First, the monthly PITI should not exceed 28% of your monthly gross income. Monthly PITI is the payment towards Principal and Interest on the loan and monthly escrow payments, which accumulate for your payment of Taxes and Insurance. Second, the sum of your monthly house payment, 5% of all credit card balances, and all installment obligations should not exceed 36% of your monthly gross income.
• You must have an acceptable credit history. A credit check should show that you have paid charge accounts, auto or other installment loans, student loans, etc. in a timely manner.
• Homes that are eligible are new homes, an existing single-family house, townhouses, condominiums, or one unit of a duplex.
• Also an existing residential structure with 2 to 4 units, as long as it has been occupied as a residence for at least five years preceding the loan application, and you intend to live in one of the units after closing.
• The property must have an appraised value at least equal to the purchase price and must meet area standards and codes.
• The purchase price must not exceed the maximum price limits for your county.

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