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1st Time Home Buying FAQ - Call 630-854-3459


Why should I buy instead of rent?

A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.


Can I become a homebuyer with bad credit and very little for a down payment?

YES ! There are programs available for first time home buyers with poor credit and limited savings for a down payment. We offer no down payment loans and low down payment loans -- we also have down payment assistance programs.


Are there special home ownership grants?

YES -- There is help available. We offer down payment assistance programs 


Should I use a real estate broker? How do I find one?

A. YES - Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well acquainted with all the important things you will want to know about neighborhoods being considering, the quality of schools, the number of children in the area, traffic volumes, and more.  Ask us for a referral to a Realtor in your area.


How much money will I have to come up with to buy a home?

The answer to this question depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs:


  • Earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house.
  • Down payment - a percentage of the cost of the home that you must pay when you go to settlement
  • Closing costs - the costs associated with processing the paperwork to buy a house.
When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money usually varies. Ask your realtor for more information.


How do I know if I can get a loan?

Start by calling us 630-854-3459 to get pre-qualified before you start looking for homes.   Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home you want.


In addition to the mortgage payment, what other costs do I need to consider?

You will, of course, have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes are normally rolled into your mortgage payment.


So what will my mortgage cover?

Most loans have 4 parts:


  • Principal: the repayment of the amount you actually borrowed.
  • Interest: payment to the lender for the money you've borrowed.
  • Homeowners Insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards.
  • Property Taxes: the city/county taxes assessed on your property.

The most common repayment period for home loans is 30 years, although 15 year loans are available, too.

I know there are lots of types of mortgages - how do I know which one is best for me?

Call 630-854-3459 for a free prequalification and mortgage analysis.



Contact Info

Patty Harrison

ph. 630-854-3459
fx. 630-904-1010
Cell: 630-854-3459
Smart Mortgage - 4003 Plainfield/Naperville Rd. #201 , Naperville, IL 60564
NMLS #230234/Company #222269 / Illinois Residential License #4870