Everything You Should Know About Conventional Loan - PowerPoint PPT Presentation

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Everything You Should Know About Conventional Loan

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Conventional loans are so common that you've probably heard of them before. They may even have been recommended to you by your lender! But how do they work? What are the pros and cons of their loan option compared to the rest? Here's what you need to know about conventional loans so you can make an informed decision. – PowerPoint PPT presentation

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Title: Everything You Should Know About Conventional Loan


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Everything You Should Know About Conventional Loan
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(No Transcript)
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  • Conventional loans are so common that you've
    probably heard of them before. They may even have
    been recommended to you by your lender!But how
    do they work? What are the pros and cons of their
    loan option compared to the rest? Here's what you
    need to know about conventional loans so you can
    make an informed decision.

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What Is a Conventional Loan?
  • In contrast to government-guaranteed mortgages,
    conventional mortgage loans are not backed by the
    government. In most cases, however, private
    lenders back the loan and the borrower is
    responsible for covering its insurance.
  • Government-sponsored financing is rarer than
    conventional loans. By a wide margin,
    conventional loans made up 74 of all new home
    sales in the first quarter of this year.
  • The federal government does not insure
    conventional loans, so they are riskier, though
    they offer more flexibility.

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How do Conventional Loans and Government Loans
iffer?
  • Understand the difference between conventional
    and government-backed loans when thinking about
    your mortgage options.
  • Veterans are able to get VA loans, which are
    government-backed, as well as FHA loans, which
    are offered by the Federal Housing Administration
    (FHA). In addition to FHA funding, VA loans are
    guaranteed by the Veterans Administration.
  • You must pay MIP (mortgage insurance premium)
    with an FHA loan. 3.5 down is required. You may
    be liable for loan defaults if the FHA makes
    money from MIP.

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A Conventional Loan How Do You Qualify?
  • Meeting with a lender is the first step to
    qualifying for a conventional loan. If you're in
    the home-buying process, we recommend you contact
    Pierpoint Mortgage, one of the best mortgage
    companies Los Angeles, when you plan to meet with
    a lender. A lender will ask for documentation
    like recent pay stubs, tax returns, and bank
    statements. Mortgage lenders want to be sure you
    have a steady income and can make your monthly
    mortgage payments on time.
  • Conventional loans require a down payment as
    well. With a conventional loan, you can put only
    3 down, but we recommend a minimum of 10. You
    could avoid PMI by paying 20, though!

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Conventional Loans Have Several Benefits
  • Private mortgage insurance (PMI) reduced to 3
  • Quick loan approvals
  • Different down payment options, starting at 3 of
    the purchase price
  • Fixed-rate mortgages ranging from 10 to 30 years
  • Fixed-rate mortgages ranging from 10 to 30 years

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Contact Us
  • PierPoint Mortgage
  • 1 323-986-4400
  • 3680 Wilshire Blvd Los Angeles, CA 90010, United
    States
  • frontdesk_at_pierpointmortgage.com
  • https//pierpointmortgage.com/locations/mortgage-b
    roker-california-los-angeles/
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