What is the difference between a fixed-rate and an adjustable-rate mortgage?

A fixed-rate mortgage maintains the same interest rate throughout the loan term, providing stability. In contrast, an adjustable-rate mortgage (ARM) typically starts with a lower rate but may change over time based on market conditions.

What credit score is required to qualify for a mortgage?

Lenders typically prefer a credit score of 620 or higher for conventional loans. Government-backed loans like FHA and VA may accept lower scores.

Can I refinance my mortgage to lower my monthly payments?

Yes, mortgage refinancing can often reduce monthly payments by securing a lower interest rate or extending the loan term.

How much down payment do I need to buy a home?

The down payment requirement varies but often ranges from 3% to 20% of the home's purchase price. Certain loan programs, such as FHA or VA, may have lower down payment options.

What is the mortgage approval process like?

The process involves pre-approval, application, document verification, underwriting, and closing. Pre-approval helps determine the loan amount you can afford.

What's the difference between pre-qualification and pre-approval for a mortgage?

Pre-approval is a more rigorous process involving a comprehensive review of your credit, income, and other financial factors, resulting in a firm commitment from the lender for a specific loan amount.

Conventional Loans

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.