Conventional Home Loan Advice in Texas
Conventional loans are not insured or guaranteed by the federal government, meaning they may have stricter credit and income requirements than other types of loans. However, they can be a great option for those who meet the qualifications and are looking for a traditional mortgage product.
Our team of conventional home loan advisors will work with you to determine if a conventional loan is the right option for your unique financial situation. We’ll guide you through the application process and keep you informed throughout the process. We pride ourselves on our commitment to providing exceptional customer service, timely responses, and conventional mortgages in Texas at competitive rates.
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What is a Conventional Home Loan?
A conventional home loan or conventional mortgage offers a sense of financial stability to a potential homebuyer with its fixed interest rate throughout the loan tenure. A conventional home loan in Texas, available through banks, credit unions, mortgage companies and other private lenders, is not insured by the federal government. Lenders offering this type of loan adhere to the guidelines outlined by Fannie Mae and Freddie Mac. You can utilize this loan product to finance a new house or refinance an existing mortgage.
Expert Consultation for Home Loans in Texas
At Eroica Financial Services, we offer conventional home loan consultation in Texas for those looking to purchase or refinance a home. Conventional loans are a popular option because they offer competitive interest rates and flexible repayment terms.
Benefits of Conventional Mortgages in Texas
As the federal government does not insure conventional mortgages, the eligibility requirements are strict. To qualify for a conventional home loan in Texas, you may need a larger down payment, a higher credit score, and a lower debt-to-income ratio. While this makes it a little difficult to secure a conventional loan, the benefits of conventional mortgages outweigh the strict requirements.
Transparency
Conventional loans comply with the regulations of Freddie Mac and Fannie Mae, making them more transparent. The Dodd-Frank Act has already made prepayment penalties, balloon payments and negative amortization illegal on these loans.
Stability
You need to be less concerned about the financial unpredictabilities of the future as conventional loans have fixed interest rates throughout the tenure. Knowing that your interest rate and payments will be immune to fluctuations in future market trends will give you a genuine sense of financial stability.
More Options
The desire to repay the loan quickly is obvious, as you can make significant interest savings with a shorter tenure. Moreover, the sooner you pay, the sooner you become a homeowner. You can opt for a long-term conventional home loan to keep your monthly EMI outflow in check.
Variety
Private lenders offer conventional home loans in Texas for multi-unit dwellings, vacation homes, rental properties, second homes, and other purchase types.
Cheaper to Close
Conventional mortgages can save you 10-15% on the appraisal fees. Low up-front fees make conventional loans cheaper than all government loans.
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