Conventional Loans Mortgages
For conventional loans mortgages, there are 2 main key mortgage lessons you must know before do anythings else. First, you must decide your home buying budget before applying any loans. Second, understand the fixed rate option and adjustable rate option.
Do the 2 lessons mentioned above 1st, you will gain more successful home buying experience.
After completed above tasks, is the time to understand the loan types offering at the market now. Here are :-
Some Conventional Loan Types
1) Jumbo loans - The loan amount is established by Fannie Mae and Freddie Mac. Interest rate is slightly higher than other loans, but the loan limit is greater. Large sum of money can be obtain through this option.
2) Conforming loans - The terms and conditions of the loan is follow the guide line set up by Fannie Mae and Freddie Mac. Borrowers are required to furnish with their credit and income requirements, down payment and collateral.
3) B/C Loans - These loans are special for peoples who have recently filed for bankruptcy, foreclosure, or have had late payments on their credit reports. This is to help these applicants until they can qualify for conforming "A" financing. Once getting the loan, make the payments on time to rebuild back the credit.
Many banks required borrower to put down at least ten percent of the lending amount, otherwise they won't consider the application. Some even required twenty percent of the amount.
The closing costs charges between banks and private loan companies are different. Normally closing costs charged by banks are from 1 - 2 percent, while private loan companies will be 3 - 5 percent.
To review government loan types, please check out
Government Mortgage instead of Conventional Loans Mortgages
or check out
Home Loan Guide
Return to Loan-God Home Page
Return to top of the page