Know how much home you can afford to buy The best way to have a good home-buying experience is to purchase an affordable home. Many of the foreclosures in the nation are a result of people buying more house than they could afford. Know your budget and the type of Illinois mortgage loan that is best for you.

I recommend:  Use online calculators like those at CNN Money or Yahoo Real Estate to see how much you can afford. The mortgage calculator at Interest.com will let you see what an interest-only loan will look like and the calculator at Mortgage-Calculators.com will give examples of the payments on a balloon mortgage.

Search for reputable Illinois mortgage companies The first step to finding the best home mortgage lenders in Illinois is to find a variety of reputable companies. Illinois has several options and ways to search for lenders with a good track record.

I recommend:  Make sure the mortgage broker you select is in good standing with the Better Business Bureau in Chicago. Look for Illinois mortgage lenders who are part of associations such as the Illinois Mortgage Bankers Association.

Investigate the best Illinois mortgage available Before you select your lender, find out what kind of Illinois mortgage loans are available to you. When you find out what's out there, you will have more negotiating power with the mortgage loan companies.

I recommend:  Start your search with national companies such as GMAC Mortgage or Equifax which can help refer you to mortgage loan companies in Illinois. Lending Tree lets banks compete to see who can offer you the best loans in Illinois.