Conventional Loans

Owning a home is a significant milestone in many people's lives, but the path to homeownership can seem filled with obstacles. That's where Freedom Lending Team comes in, offering you a helping hand through the process of securing a conventional loan. Let’s break down the essentials, ensuring you have all the knowledge you need to make informed decisions.

What is a Conventional Loan?

A conventional loan stands out as the most popular type of mortgage for homebuyers. Unlike government-backed loans (such as FHA, VA, or USDA loans), conventional loans are offered through private lenders and have different requirements and benefits. These loans offer a combination of flexibility and efficiency, making them an attractive choice for many buyers.

Why Choose a Conventional Loan?

Flexibility in Payment: Conventional loans offer varied down payment options, starting as low as 3% of the home's purchase price.

Avoid Certain Fees: You can avoid mortgage insurance fees if you put down 20% or more.Various Term Lengths: Choose from a variety of repayment terms, from 10 to 30 years, to fit your financial situation.

Property Choices: There's freedom to use these loans for your primary home, a second home, or even an investment property.

How To Get A Conventional Loan with Freedom Lending Team

Navigating the path to securing a conventional loan can be straightforward if you know the steps to take. Here’s what the journey typically looks like:

Step 1: Save for Your Down Payment

One of the first hurdles in buying a home is gathering the funds for a down payment. While conventional loans are flexible, offering down payments as low as 3%, saving a larger amount can significantly impact your mortgage terms. A higher down payment can lower your monthly mortgage payments and may even exempt you from needing private mortgage insurance (PMI), saving you money in the long run.

Step 2: Check Your Credit Score

Your credit score is a critical factor in determining the interest rate you qualify for. A score of at least 620 is typically required for a conventional loan, but the higher your score, the better your interest rates. Before applying, check your credit report for any errors that might be lowering your score unfairly and work on improving your credit by paying bills on time and reducing debt.

Step 3: Understand Your Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is a key measure lenders use to determine your ability to manage monthly payments. It's calculated by dividing your total monthly debt payments by your gross monthly income. For conventional loans, a DTI ratio of 43% or lower is ideal. Lowering your DTI can make you a more attractive candidate for a loan.

Step 4: Gather Your Financial Documents

Lenders will require several documents to process your loan application. These include proof of income (such as pay stubs and W-2 forms), tax returns, and statements for all your bank and investment accounts. Organizing these documents beforehand can expedite the application process.

Step 5: Employment Verification

Stable employment is another crucial factor in the loan approval process. Lenders will verify your employment status and salary to ensure you have a reliable source of income to cover your mortgage payments.

Step 6: The Home Appraisal

An appraisal is mandatory to determine the property's value. The lender needs to ensure the loan amount does not exceed the property's worth. This step is also beneficial for you as it protects you from overpaying for a home.

Why Choose Freedom Lending Team for Your Conventional Loan?

Choosing the right partner in your journey to homeownership is vital. Freedom Lending Team stands out for several reasons:

1.Expert Guidance: Our team of mortgage professionals is here to guide you through every step of the process, ensuring you understand all your options.

2.Personalized Solutions: We understand that every homebuyer’s situation is unique. We offer personalized loan solutions to meet your specific needs.

3.Commitment to Clients: Our commitment doesn’t end when you close on your home. We’re here for you for any future needs or questions.

Ready to Get Started?

Step 1: Reach Out to Us

Contact Freedom Lending Team by phone, online, or in person. We’re excited to learn about your homeownership goals and discuss how we can help you achieve them. Ready to take the first step? Reach out to us today at 702-777-2666.

Step 2: Complete an Application

We’ll provide you with a loan application togather important information about your financial history and current situation. This step is crucial for us to understand what you qualify for and how we can best meet your needs.

Step 3: Submit Your Documents

After completing your application, you will need to submit the necessary financial documents. This typically includes proof of income, tax returns, and bank statements. These documents are vital for verifying the information you provided in your application and for assessing your financial health.

Step 4: Pre-approval Process

Once we have all your information, we'll work on getting you pre-approved. This step involves evaluating your financial documents and credit score to determine how much you can borrow. Pre-approval is a powerful tool when house hunting, as it shows sellers that you're a serious and qualified buyer.

Step 5: Find Your Dream Home

With a pre-approval letter in hand, you're ready to start looking for your new home. This exciting phase involves touring homes, evaluating neighborhoods, and deciding on the best fit for your lifestyle and budget. Once you've found the right home, you'll make an offer and enter into negotiations with the seller.

Step 6: Final Loan Approval and Closing

After your offer is accepted, we'll proceed with the final loan approval process. This includes a detailed review of the property and your financial situation. Once everything is cleared, we'll set a closing date. At closing, you'll sign all the necessary paperwork, finalize your loan, and receive the keys to your new home.