First Midwest Bank Mortgage Review 2022

First Midwest Bank overview

First Midwest Bank is the principal subsidiary of First Midwest Bancorp. The holding company has $22 billion in assets as well as an additional $15 billion of assets under management. The bank maintains a branch system with 105 locations throughout Illinois, Indiana, Iowa and Wisconsin. Organized in the 1930s during the Great Depression, First Midwest Bank grew with the goal to "treat the person in the overalls and the person in the business suit the same way.” Today, First Midwest Bank is licensed in 46 states (it is not licensed in Alaska, Hawaii, Maryland or New Jersey), and the little bank that started in Joliet, Illinois, has evolved into a national lender, offering more than 50 types of mortgage options, prequalifications in 30 minutes or less and closings within 35 days (or within 40 days for a refinance).

Good for

Borrowers looking for an assortment of loan options, down payment assistance and the potential to save on closing costs

Loan types

• Conventional
• Jumbo
• FHA
• VA
• USDA
• Fixed-rate
• Adjustable-rate
• Rate-and-term, cash-out and streamline refinancing
• Home equity line of credit (HELOC)
• Home equity loan
• Construction and renovation loans
• Physician loan
• Portfolio loan

Lender fees

First Midwest Bank charges a $750 processing and underwriting fee. There is no lender fee for VA loans. If you are a banking customer, you could be eligible for a closing cost rebate of $150 to $250, depending on your status. In addition, the bank’s “Honoring Our Heroes” program for first responders seeking purchase financing provides a $550 credit.

Rates 

First Midwest Bank does not advertise mortgage rates on its website; you’ll need to contact a loan officer or visit a branch to learn what you might qualify for. Note the bank does advertise a promotional HELOC rate online, and you can request a rate quote for a HELOC online.

Reputation

First Midwest Bank is not accredited by the Better Business Bureau but has an A+ rating from the organization. In prior years, the bank has ranked highest in customer satisfaction in the Midwest region by J.D. Power for its banking services.

Online services

To explore loan options, borrowers can connect with a loan officer by filling out a form through First Midwest Bank online. Borrowers can also apply for a purchase loan or refinance directly through the website. There isn’t a separate capability to obtain an online prequalification or preapproval.

Like many banks, First Midwest has an app for banking customers, and borrowers can pay their mortgage online. The bank also offers e-signature, but it is unclear if this is available for the mortgage closing process.

Lastly, the bank’s website features several different mortgage calculators that can help you estimate everything from how much your mortgage payments will be to what your refinance could cost. 

Minimum borrower requirements

First Midwest Bank follows the conforming underwriting standards for Fannie Mae and Freddie Mac loans as well as for financing backed by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA) and the U.S. Department of Agriculture (USDA). These guidelines allow financing with as little as zero percent down for VA or USDA financing, 3 percent for Fannie Mae and Freddie Mac financing and 3.5 percent for FHA-backed mortgages.

Refinancing with First Midwest Bank 

First Midwest Bank offers rate-and-term and cash-out refinancing, as well as FHA and VA streamline refinancing, which you can apply for online or by contacting a loan officer. The bank does not display refinance rates on its website, so you’ll need to obtain a quote to make comparisons to other lenders.

Not sure if First Midwest Bank is right for you? Consider these alternatives

• Chase Home Lending review: Another bank option available to borrowers nationwide
• Bank of America mortgage review: No fees to convert an adjustable-rate loan to a fixed-rate mortgage
• Goodmortgage review: Offers options for borrowers with lower credit scores
• Sebonic Financial mortgage review: Offers interest-only jumbo loans
• CFBank mortgage review: Returns rate quotes in seconds

Breakdown of First Midwest Bank overall review score 

• Affordability: 5/5
• Availability: 5/5
• Borrower experience: 4.7/5

Review methodology 

To determine a mortgage lender’s Bankrate Score, Bankrate’s editorial team rates lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews. Here is our full methodology.