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 are required to conform to underwriting 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 can offer the best interest rate and lowest fees, which can result in lower monthly payments. Most home buyers also choose a fixed-rate over an adjustable-rate mortgage to avoid any rising mortgage rates, which makes budgeting much easier. They are typically considered to be the most common, stable, and safest type of loan.
Conventional loans are great for many Southern California home buyers because of faster home loan process, low costs, and added flexibility. When applying for a conventional loan, you must meet three initial requirements:
Another benefit to taking out a conventional loan is the flexibility it provides for different types of local properties. Eligible properties for conventional loans include single-family homes, condominiums, multi-unit properties, and planned unit developments.
So, if you have a decent credit score and available funds to make a down payment on an eligible property, it is likely you can qualify for a conventional loan when buying a Southern California home.
Most importantly: RESEARCH. Before taking out a loan, make sure to speak with a mortgage broker about the perfect loan for you, and look into mortgage loan mistakes. Some of the most common mistakes people make when applying for a conventional loan is not checking their credit beforehand and ignoring the real expenses of homeownership in the Southern California area.
Contact The Forester Team today for any further information or questions about conventional loans!
Thank you so much for all that you have done for us throughout this process. I honestly do not know if we would have our dream home if it weren’t for your amazing work ethic and ability to get the ball rolling so quickly. Two offers were put on our home while awaiting the loan approval! No one else could have made that happen as quickly and efficiently as you did! We are eternally grateful to you and your amazing team at Team Forester Home Point Financial. Thank you. Thank you. Thank you.Amy Stock
I would like to appreciate you and your team’s work for getting this refinancing processed and finished in time with such an efficiency. You made it go through with such an ease. I would most definitely recommend you and your team in the future.Thank you again for your support and help!Helena Chun
Thank you for assisting me and my family with the purchase of our home. The entire process was beyond expectations. All of you have made my first time home buying experience enjoyable and memorable.I’m very pleased and will definitely recommend and work with all of you again.Semper Fidelis
Thank you all for your assistance and guidance through our first purchase. It went very well (much smoother than anticipated) and we thank you for all the hard work you all have put in to getting us into this home. We look forward to working with you again in the future.Eric & Nicole Roachell
Casey Forrester is the best in all regards, I can’t say enough good things about him. We just closed a VA loan in 21 days yesterday. He is able to fully underwrite the file before he even gives a pre-approval letter which allows you to offer without a loan contingency! Also, you can close in 21 days which cuts the escrow period by 30% and increase profitability and cash flow for you as the agent. He also has an online pre-approval link in his signature that makes getting pre‐approved super easy!Drew Schulte
Thank you, Casey, for a job well done. I was so glad that I called you to refinance our home. The moment that I talked to you on the phone that first day about the refi, it felt like a huge weight was lifted off my shoulders.You put my mind at ease, I was calm and confident that I had made the right choice.Derek Paddock
I have truly appreciated working with you and your team and will continue to recommend you to our friends!Brian & Nina Kasper
You and your team didn’t have the easiest case, but you handled it so well. Your communication was great, and everyone we dealt with was very friendly. I wish we had worked with you on the first go-around, but either way, we are looking forward to working together again in the future.Andrew & ArielKinsler