Daniel Yelovich walks first-time home buyers through the mortgage application process

While the process of applying for and securing a mortgage may seem daunting, this needn’t be the case according to Daniel A. Yelovich, a licensed mortgage loan officer and father of two from Glen Ellyn, Illinois.

Daniel Yelovich goes on to explain that when an individual, family, or group wishes to acquire a mortgage, a bank will generally explore three key areas. “These,” he says, “are income, credit, and down payment.”

According to the mortgage loan officer, if a borrower is strong in all three areas, it’s likely that a bank will grant them a mortgage without difficulty, and often within a very short window of time. The process is, in fact, he says, and contrary to popular belief, often quite straightforward.

“People must remember that banks actively want to give them a mortgage,” he points out. “They simply need to prove a lender’s ability to repay what they’ve borrowed. It’s as simple as that.”

To ensure this, banks will first address income. “As long as regular income is sufficient, a lender will often quickly move on to credit,” Yelovich reveals.

Of credit, the licensed expert explains that credit scores of 700 or more are preferred. “Around 640 is usually fine, and above 740 is ideal,” he suggests.

Part of a series of checks and examinations surrounding credit history, even where credit is problematic for a potential borrower, there are ways to overcome this and other obstacles which may surface during the mortgage application process. “Where credit poses a problem, for example,” says Yelovich, “a wealth of valuable information exists online about how best to legitimately improve the situation.”

The next part of the process and last on Yelovich’s list of points is down payment. This, he says, is perhaps the most vital aspect of applying for a mortgage. “The bigger the down payment, the more a borrower demonstrates an ability to save, as well as a commitment of personal funds to the transaction,” he explains.

In terms of down payment amount, Yelovich reveals that banks prefer there to be a 20% or greater contribution. “That’s 20% or more of the purchase price of the property,” he confirms, “although there are special programs out there which allow for much lower down payment amounts.”

“Some first-time home buyer programs, for example,” he adds, wrapping up, “currently require just 3% upfront, which is great news for first-time home buyers and young families in particular.”

A licensed mortgage loan officer for over 20 years, Daniel A. Yelovich currently resides in Glen Ellyn, Illinois with his wife, Janet, and two children, Rebecca and Adam.