What are the benefits of a conventional loan?
A conventional loan is a popular program if you want to put more money down and a lower monthly payment
Faster loan process
The home loan process is more streamlined because the government doesn’t need to approve it. As a result, the process tends to move quickly, which means you get to move into your dream home sooner.
Depending on the size of your down payment, you can eliminate or reduce the PMI you pay monthly. The fee is reduced based on the amount of your down payment. A 20% down payment eliminates the fee.
Lower interest rates
A good credit score, stable income, and other criteria could qualify you for a lower interest rate reducing your monthly payment amount.
Steps to a conventional loan
Step 1 | Get pre-approved
Our mobile app, Mortgage Express, helps you get pre-approved quickly. It’s secure and you can upload all required documents straight into the app to save you time and energy.
Step 2 | Talk to a Mortgage Consultant
Your mortgage consultant will keep you and your agent updated every step of the way with our Milestone Updates.
Step 3 | Close on your loan
Your consultant will assist you with everything you need and help you setup your closing appointment.
Conventional quick contact form
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Frequently asked questions
How much do I need for a conventional loan down payment?
If you are a qualifying first time homebuyer, then your down payment could be as low as 3%. Other homebuyers could have a down payment as low as 5%. You don’t need a 20% down payment to get a conventional loan but it helps.
What are the credit score qualifications for a conventional loan?
For conventional loans, the minimum credit score qualifications can vary, but typically the minimum is 620.
Do I have to pay mortgage insurance with a conventional loan?
If you’re a first time homebuyer taking advantage of the 3% down payment option, you will be required to pay mortgage insurance. In fact, a down payment less than 20% will require you to pay mortgage insurance. When you put 20% or more down on your home, you can eliminate PMI.
Does the home need to be inspected before I can receive a conventional loan?
You should never purchase a home without having it inspected before. An inspection allows you, the homebuyer, to have a better understanding of the condition of the home.
Aside from an inspection, the home will need to be appraised by an approved appraiser.
What are closing costs and do I have to pay them with a conventional loan?
Closing costs are any expenses that you might have to pay over and above the price of the property. These costs can, but don’t have to include: origination fees, discount points, appraisal fees, title searches, surveys, and taxes
What are the conventional loan limits?
Several factors play into the loan limits. Mostly, it is determined by the terms of the loan and the location of the house. There are certain areas of higher cost that have a higher term limit. To learn more about the limits in your area, contact a mortgage consultant.