Conventional loans are mortgage loans offered by non-government sponsored lenders. These loan types include:
- Fixed Rate Loans
- Adjustable Rate Loans (ARMs)
- Combination (Hybrid) Loans
- Balloon Mortgages and Pledge Asset Loans
- Jumbo / Construction Loans
- Reverse Mortgage
Understanding A Conventional Mortgage Loan
When applying for conventional lending programs, the borrower can note that these loans typically have a fixed interest rate. Having a fixed interest rate prevents the interest rate from changing throughout the life of the loan in accordance with the rise and fall of the market. Conventional mortgages, or loans or not guaranteed by the federal government, are usually characterized by stricter lending requirements that are determined by banks and creditors to remain in accordance with their lending standards.
When working with a conventional loan program, your loan officer will help you plan accordingly and realistically. Preparing your required documents and your down payment will make the difference in securing your funding smoothly and efficiently. Your loan officer has the experience and the “know-how” to keep you moving forward in the right direction. Don’t be afraid to ask questions along the way – we’re always here and happy to help!
Contact our team today to talk more about your personal financial situation and goals. A conventional loan may be the perfect fit for you!