MoneyGeek’s Take
2024 First Midwest Bank Mortgage Review
Updated: December 28, 2023
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MoneyGeek’s First Midwest Bank mortgage loan review found that this lender offers multiple product options for mortgage borrowers, including special loan programs for doctors, conventional loans, government loans, jumbo loans and construction and renovation loans. You need a minimum credit score of 620 and a 3% deposit to qualify for a conventional loan with its HomeReady program, but requirements for other mortgage products may vary.
At a Glance: First Midwest Bank Mortgages
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First Midwest Bank is a subsidiary of First Midwest Bancorp, founded in 1940. In 2022, First Midwest Bank completed a merger of equals with Old National to become First Midwest Bank, a division of Old National. This lender has 103 branches across Illinois, Wisconsin, Indiana and Iowa, but services can also be accessed online from other states. This lender is a good option for borrowers who want flexible mortgage products and down payment program assistance.
To qualify for a mortgage from First Midwest Bank, you need a credit score of at least 620, although you may qualify for VA and FHA loans with a score of 580. First Midwest Bank stands out for having special loan programs for doctors, which has a 0% down payment requirement. First-time buyers may be eligible for down payment assistance programs to make their mortgage more affordable.
First Midwest Bank does not disclose APR rates and other product fees on the company website. However, this lender has a wide range of calculators that you can use for free to get estimates for your mortgage payments, interest rates, tax savings and more. You can also submit an application online to be connected to a residential lender near you to guide you on First Midwest Bank mortgage products, rates and application procedures.
However, interested and current borrowers should note that as of July 2022, First Midwest will fully merge with Old National Bank. After this point, First Midwest offices and computer systems will operate under Old National.
Pros
- Down payment assistance programs for first-time buyers
- Online account management option
- Wide range of mortgage product options
- Clients receive a rebate after closing on a new mortgage
Cons
- Branches only available in four states
- Some mortgage products unavailable in certain locations
First Midwest Bank Mortgage Loan Types, Details and Requirements
MoneyGeek’s First Midwest Bank mortgage review breaks down everything you need to know about mortgage loans from this lender including rates, product options and eligibility criteria.
Mortgage Types Offered
First Midwest Bank offers the following types of loans:
- Conventional
- Jumbo
- FHA
- VA
- USDA
- Fixed-rate
- Adjustable-rate
- Home equity line of credit (HELOC)
- Home equity loan
- Construction and renovation loans
- Physician loan.
Mortgage Rates
First Midwest Bank does not list rates for its mortgage loans on its website. However, this lender has a variety of mortgage calculators that you can use to estimate mortgage payments, refinancing costs, interest rates and tax rates.
Additional Fees
Apart from the down payment fees, First Midwest Bank does not specify any of the other additional fees you may incur. However, most mortgage loans incur appraisal fees, credit report costs, tax and insurance fees as well as processing fees. You can find out from the First Midwest Bank’s loan officer the particular loans that will apply to your facility.
Minimum Borrowing Requirements
MoneyGeek’s First Midwest Bank mortgage review found that this lender has different credit score requirements depending on the type of loan. However, for most loan products, you will need a credit score of at least 620 to qualify.
For FHA and conventional loans, borrowers are required to have a minimum deposit of 3.5% and 3%, respectively. You also need to have proof of steady income and will need to attach your bank statements, recent tax statements and pay stubs to your application.
First Midwest Bank Mortgage Application Requirements
To apply for a First Midwest Bank mortgage loan, you will need to submit your details online and a loan officer will get back to you. You will need to provide the following details for your application to be reviewed.
Proof of income
The lender will require income details, including pay stubs and bank statements.
Tax information
You will need to provide your tax information, including your most recent W-2s.
Credit details
You will need to provide authorization for the lender to perform a credit check and pull your tax returns.
Debt documentation
Any debts you have will need to be disclosed, including car loans, other mortgages, credit card debts and student loans.
Is First Midwest Bank Right for You?
When choosing a lender, it is important to consider your needs and what product options would be most suitable. Comparing rates and product offerings can help you get the best mortgage loan possible since rates, limits and other features can vary widely depending on the lender.
Who First Midwest Bank Is Perfect For
First Midwest Bank is ideal for doctors who want to get a mortgage loan. First Midwest Bank has a special mortgage program for physicians and first responders that does not require any down payment. This loan product also does not require PMI (Private Mortgage Insurance), which can help save significantly on costs over the life of the loan.
First Midwest Bank mortgages may also be a good option if you are a first-time borrower. Not only will you qualify for a rebate on your first mortgage, but this lender also offers low down payment programs for borrowers who qualify. This can make the mortgage payments more affordable.
Who Should Not Choose First Midwest Bank
First Midwest Bank may not be an option if you are looking for a lender with branches across the country. This bank has 103 branches, but it is only in four states: Illinois, Wisconsin, Indiana and Iowa. This means if you are from a different state, you can only access services online, and you may not be able to access all the product options available. Jumbo loans, for instance, are only available in select states.
How to Apply for a First Midwest Bank Mortgage Loan
Prequalify
First Midwest Bank does not have an online pre-qualification or pre-approval for mortgages. However, you can submit your details online and a loan office or resident lender will get back to you with more information.
Fill Out Application Form
First Midwest Bank has an online application form that you can use to apply for a purchase or refinance loans online. You will be required to provide supporting documentation with your application including identification, income, tax and debt statements.
Wait for Approval
Your loan will be assigned to an underwriter for review. The review process may take 35 days to 45 days or more, depending on the type of loan product you have applied for.
Review Loan Agreement
Once your loan is approved, the loan officer or residential lender will get in touch with you to review and sign all the documentation in person.
Receive or Direct Funds
Once all the documents are duly signed, your loan will be funded as per the agreement and rates indicated.
Make Payments
Mortgage payments can be managed online from the client portal on the First Midwest Bank website. You can also review your payment history online and manage your account through the online portal.
What to Do if You Are Rejected by First Midwest Bank
Not all mortgage loan applications will get approved. First Midwest Bank may decline your loan application for various reasons including failure to meet its minimum eligibility criteria. In case you are declined, it does not mean that you will never qualify for a loan. Factors like credit score and debt-to-income ratio can be improved over time, making you more eligible for a mortgage.
It is important to find out from your loan office the exact reason why your loan is declined. This will help you figure out what your next steps should be based on the reason for the denial. If your credit score was the issue, you can work on improving it over time and then reapply for a mortgage. You may also check and compare eligibility requirements from different lenders to see if you qualify.
Your bank may also give you helpful resources on other financing options available to you based on your borrower profile.
Frequently Asked Questions About Mortgages From First Midwest Bank
If you would like to find out more about mortgage loans from First Midwest Bank, you can refer to the answers to frequently asked questions.
First Midwest Bank mortgage loans can be used to buy different types of property, including single-family homes, two- to four-unit homes or condominiums. This bank also offers home equity loans, construction loans and renovation loans.
If you have a steady source of income and a minimum credit score of at least 620, you can apply for a First Midwest Bank mortgage loan. This lender also offers special mortgage loans for physicians that have a 0% down payment and no requirement for PMI.
First Midwest Bank offers conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate, home equity line of credit (HELOC), construction and renovation loans and physician loans. The availability of some loan products may depend on your location.
First Midwest Bank does not specify loan limits for its products on the company website. However, you can use the online mortgage calculator on the company website to get an estimate of how much you can borrow. Alternatively, you can opt to be connected to a loan officer or residential lender for information on limits and rates.
The minimum down payment for First Midwest Bank mortgage loans is 0% for doctor loans and VA loans. Conventional loans and FHA loans require a minimum down payment of at least 3% and 3.5%, respectively.
First Midwest Bank requires private mortgage insurance (PMI) for certain mortgage loans, including conventional loans. Property insurance is required for all loans secured by a loan. However, its doctor loan does not require PMI.
Generally, once your loan application is submitted, the bank will order an appraisal for purchase or refinance mortgage loans. Some loans like VA and USDA may not require appraisals, but this will depend on various factors. You can talk to a First Midwest Bank lender for exact details.
sources
- First Midwest Bank. "Doctor Loan programs." Accessed June 1, 2022.
- First Midwest Bank. "Low Down Payment Mortgage." Accessed June 1, 2022.
- First Midwest Bank. "Mortgage Center." Accessed June 1, 2022.
- First Midwest Bank. "Find the Right Mortgage For You." Accessed June 1, 2022.