What is a Conventional Loan?
A conventional loan is a mortgage that is not guaranteed or insured by any government agency such as FHA, VA, or USDA. Conventional loans are either conforming or non-conforming. Conforming mortgages must follow lending guidelines and loan limits set by Fannie Mae or Freddie Mac, whereas Non-conforming mortgages have loan amounts higher than the loan limits set by Fannie Mae / Freddie Mac.
Conventional loans generally offer low interest rate and fees, which can result in lower monthly payments. Home buyers can also choose a fixed-rate over an adjustable-rate mortgage to avoid any rising mortgage rates which makes budgeting much easier.
Eligibility
There are many benefits to a conventional loan such as faster home loan process, flexibility, and lower costs. Conventional loans can be a great option for home buyers who can meet these requirements:
- Be able to make a down payment
- Have a decent credit score (620 or above)
- Prove a stable income
If you meet these requirements, you may be able to qualify for a conventional loan.
Why should you choose Sun West?
Our team offers a 24-hour loan center for future home owners who don't have time to apply for a loan during regular business hours. We offer quick loan approvals and provide our clients with suitable loan options for their needs and financial situations. Our team members are well-versed in conventional loan rules and requirements and will ensure that you are knowledgeable about our mortgage process prior to committing to a loan.
For any questions about the conventional loan process or any of our other home loan services, give our team at Sun West a call to speak to a local team member who can answer all of your home loan questions. Contact us today!
How It Works
Step One
Use our online application to send in your request or contact our office via phone or email.
Step Two
Once your application is complete, we'll take a look at your family's financial situation and home loan needs and then pair you with a list of mortgage options.
Step Three
Review and discuss your loan options with your loan officer to make sure you choose the right loan for your needs.
Step Four
Once your loan is chosen and your application is accepted-you are ready to close!
Frequently Asked Questions
First, you will need to submit a mortgage application with us, either in person, by phone, or using our easy-to-use online form, whichever makes you feel more comfortable. One of our licensed loan officers will get in touch with you and discuss your mortgage needs and objectives with you. Next, we will check your credit scores and request you to submit the necessary supporting documents so that we can verify your identity, the source of your income, and your current debt for underwriting purposes. An appraisal will also be performed on your selected property. Once you have submitted all the documents and your loan is approved with no outstanding items, we will then prepare the closing documents so that you can get ready to sign your loan package. After your loan is funded, you are on your way to move into your new home.
What does getting a mortgage involve?
No, Sun West does not charge an application fee for you to apply for a mortgage.
Does it cost anything to apply for a mortgage?
Sun West has one of the fastest turnaround times in the industry, and our average time to close loans, even loans with FICO scores below 620, is 14 calendar days, but every borrower’s situation is different, and due to documentation requirements and varying response times from the borrower, the average time to close a loan may be higher.
How long does it take to close my loan?
A mortgage refinance refers to obtaining a new loan for the purpose of lowering your mortgage payments, converting your existing loan into a more affordable or manageable loan, or getting cash out on available equity on your home. There may be a minimum waiting period from the date you closed your previous mortgage, based on the type of refinance you are applying for. Sun West also recommends that you check with your existing lender regarding any prepayment penalties. There will be fees involved when refinancing your home, although you may have the option of rolling these costs into your new loan. Please call one of our licensed loan officers at- 855.418.3362 to discuss whether a refinance is right for you.
What is a refinance?
Most types of mortgages require a minimum amount of down payment, except for VA and USDA programs. You may also be eligible for down payment assistance programs that can help you towards minimum down payment requirement on some of the loan programs. On Conventional Mortgages, your lender will require you to pay a Private Mortgage Insurance (PMI) premium as part of your monthly payments if you put down less than 20% of the purchase price of the property. There are government loan programs available with less stringent down payment requirements as well, such as an FHA loan that will require only a 3.5% down payment, but again, these programs also require mortgage insurance premiums. Finally, keep in mind that the amount of down payment you put down for a house will also affect your Loan-to-Value (LTV) ratio, which could then affect the amount of loan you are able to qualify for, or whether or not you will qualify at all.
What amount of down payment is required in order
to obtain a mortgage?
to obtain a mortgage?
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