What is a Conventional Mortgage?

Conventional mortgages are just your ordinary, garden variety mortgages. They are not guaranteed or insured by any of the government agencies like FHA (Federal Housing Administration) or others. There are set rules or standards for how these loans are written, such as how much each person can qualify for, as well as the terms that can be set forth in these mortgages.

What a Lender Looks For When You Apply for a Conventional Mortgage

1. Your application.
- Is it completed, signed and dated where instructed?
- Are all necessary documents included in the packet?
- Are appraisals for the home included in the packet as well?

2. Your credit worthiness
- Is your debt to income ratio too high?
- What is your total credit score?
- What is your current income and how stable is it?

3. The actual loan you are requesting
- Are you asking for more than the home is worth?
- Are the terms agreeable to the bank as well as for yourself?
- Are you being realistic?

4. The home in question
- Is the appraised and fair market value of the home in line with the loan being requested?
- Are all necessary inspections and certifications completed?
- Are the amount of taxes and insurance included in the final payment amount?

Learn more about the Valencia neighborhood, free information on the Valencia real estate conditions, and view the current inventory of Valencia homes.