Conventional loans are a great way to get money from the bank. The loan application process is simple and straightforward, as long you have enough collateral for your home! They’re approved through our banks or financial institutions which will require a 20% down payment, but once they do all of that paperwork – it’s easy-peasy getting cash in hand (or at least on an installment plan).
Should I get a Conventional Loan?
If you’ve got good credit, the ability to put down 20% of your home’s value as a down payment, and have enough equity in your house – then yes!
Conventional Loans Advantages
Here are a few advantages of a Conventional Loan:
- You can get approved for up to 95% of the purchase price.
- Low-interest rates with 30-year fixed-rate mortgages, and 15-year variable rate mortgage loan.
- You can get a loan for 100% of the purchase price.
- The interest rates are much lower than FHA and VA loans, and you won’t have to pay upfront fees or mortgage insurance premiums on top of your monthly payments like with those other two options.
Conventional Loans Disadvantages
Here are a few disadvantages of a Conventional Loan:
- Your down payment should be at least 20% of the purchase price.
- You may not qualify for a Conventional Loan if you’ve only been employed by your company for less than two years or have little to no credit history – check with your mortgage broker!
- You may be paying more interest with the 30-year fixed-rate mortgage than you would by adding a 15-year variable rate loan to your monthly payment.
How Can We Help?
What are some drawbacks?
The only real downside is that once you close on the loan, they’ll take away 20% (or more) from what was forked over. Addressing this up-front can help alleviate any future regrets. The other thing to watch out for is paying points if it will bring the interest rate below where you would get with an ARM mortgage. This may be worth doing depending on how long you plan on staying on the property.
Where to get Conventional Loans?
If you are looking for a conventional loan, we recommend reaching out to your mortgage broker. They will be able to provide you with an estimate of what it would cost on the loans and can guide you through any additional information that may help you in making a decision.
Bottom line: Conventional loans are great but there’s a lot of information about them that people should know before applying.
Contact Legacy Mortgage Today!
Legacy Mortgage is a nationally recognized Conventional Loans brokerage company specializing in both refinance and new home loans. We can help you turn your dream of a gorgeous, custom-built house into reality by providing the most competitive rates on mortgages available anywhere today!
Come see why we have so many happy customers!