Applying for a home loan can be a strenuous process, especially if you’re unsure which type of loan is the best fit for your financial situation. Before you apply, it is important to understand the two types of loans available to you: conventional mortgage loans and a government-backed loans. In this article, we’ll break down the basics of conventional loans.
Conventional loans can have fixed or variable interest rates, which can be impacted by your credit score. Qualifications for conventional loans are usually stricter than government-backed loans because they carry a higher risk for banks and private lenders. If the borrower defaults on the loan, the banks and private lenders are not protected.
These kinds of loans are not insured by the federal government, but they are still required to follow guidelines set by the Federal National Mortgage Association—a.k.a. Fannie Mae and Freddie Mac.
If you live in North Carolina, South Carolina, or Virginia, and you’re looking for a flexible and affordable conventional loan,* look no further than your local First Bank. We offer both adjustable-rate and fixed-rate mortgages with a range of features and benefits that are sure to fit your specific financial needs.
This kind of mortgage loan changes periodically depending on shifts in the corresponding financial index associated with the loan.
No matter which kind of conventional loan you’re interested in, we’re confident that our knowledgeable loan officers will be able to find the best fit for you. Contact us for a free personal mortgage consultation with one of our experts by filling out this online form today.
*Loans subject to credit approval.
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Sources:
http://budgeting.thenest.com/conventional-mortgage-loan-mean-4051.html
http://homeguides.sfgate.com/conventional-mortgage-loan-1991.html
http://www.investopedia.com/terms/c/conventionalmortgage.asp
http://www.zillow.com/mortgage-learning/fha-vs-conventional-loans/
https://localfirstbank.com/mortgage/loans-programs/conventional-loans/
http://www.investopedia.com/terms/a/amortization.asp
https://localfirstbank.com/mortgage/request-information/