What Our Mortgage Lenders Will Do for You
Getting a conventional loan starts with deciding the amount of loan that you will need and monthly payment that you can afford. QKMortgage.com offers you the fastest conventional loan approval in the mortgage industry. It just takes a call to have your loan approved within the next 72 hours. After your approval, you will be prepared, and our team helps every step of the way so that your loan will be processed quickly and efficiently.
Today’s government loan programs are undergoing constant changes. Because of the changes, you will need a mortgage broker that can help you get a conventional loan for you within a short time. QK Mortgage is dedicated to helping borrowers get the quickest and fastest conventional loan approval.
We have a team of experienced mortgage professionals and the technology to deliver mortgage services at a fast and efficient pace. This is why clients love us and continues using our service for all their mortgage loans. We make the loan process simple and fast; during your first call, our experienced mortgage underwriter will evaluate your scenario and let you know if you meet the minimum loan requirements. We guide you to the right path for a quick conventional loan approval.
To secure and process your conventional loan, we minimize lengthy questionnaires and summarize your personal and financial details. Once we have baseline information, your loan approval will take no more than 72 hours. You will also get a confirmation letter that your loan has been approved and the steps you need to take to close your loan.
What is Conventional Loan?
A Conventional loan is typically not insured or guaranteed by any government agency. The conventional loan guidelines are typically set by Fannie Mae and Freddie Mac. Most conventional loan requirements are the same as those of an FHA loan, although, the guidelines usually varies by lender. A conventional loan down payment may require a minimum payment of 5% down, whereas FHA may only require 3.5% down. Conventional loans may also require that a borrower maintain reserves and a high credit score to get approved. An underwriter will look at your past financial transactions and how you have handled other loans.
Conforming loan limits in California are generally below $417,000 for Single Family Residences. However, loan limits vary depending on the county or state where you live. Some parts of the US, Hawaii for instance, raises conforming conventional loan limits up to $625,500. Other factors that may be considered to approve a conventional loan include income requirements and the minimum down payments accepted by the lender. However, the guidelines are slowly changing.
Conventional Loan Requirements
Typically, a minimum credit score of 620 is required to get a conventional loan from most lenders. Some lenders require a 740 score. Lenders often add sizeable fees for those with lower credit scores. The conventional loan limits that exceed the limits set by Freddie Mac and Fannie Mae [over $625,000] are referred to as non-conforming loans or jumbo loans. The interest for conventional mortgages can be fixed or adjustable. Most fixed interest rate loans are long term: 15-30 years. Short term loans usually have lower interest rates. ARMs (Adjustable Rate Mortgages) have interest rates that vary according to the standard financial rate index like LIBOR. The monthly payments for an ARM can either go up or down depending on how those indexes are performing.
For first time buyers, it takes due diligence to get the best lender. The pricing of the conventional loans is set by the lender. The lender determines the worthiness of the borrower and checks the borrower’s FICO score. This is checked from three credit bureaus and gives the lenders the borrower statistics they need to determine the rate of the conventional loan. The statistics include the Debt-Service Coverage Ratio (DSCR) and the Loan to Value Ratio (LTV).
There are several lenders and brokers today that are offering to refinance with a conventional loan as long as the borrower meets the minimum loan requirements. We take that time to explain what is a conventional loan, and this is something important that you should keep in mind while you begin looking into getting approved for a loan and in choosing a broker to help you.
What Are Conventional Loan Benefit?
Conventional loans are typically better for those borrowers who have a stronger credit rating and/or for those that have funds available for a down payment and/or reserves.
A conventional loan does not require the property to be occupied by the owner and there are multiple loan options that borrowers can access. There are also various down payment programs that are available for the borrower that can make the monthly payment lower, this is a key difference between FHA and conventional loan.