Conventional Mortgage Loan

A Conventional Home Mortgage Loan is a loan that is not insured by FHA (Federal Housing Administration), or guaranteed by the VA (Department of Veterans Affairs).

Borrowers must have a minimum credit score of a 620 in order to purchase a home through the Conventional Loan process. There are many different terms and products available when it comes to Conventional home loans, and for a lot of people it can be quite overwhelming. This is why I take the time to answer all of your questions from the beginning so that you can feel comfortable throughout the process.

Types of Conventional Loans:

Conforming
A loan that meets and conforms to the guidelines set by both Fannie Mae & Freddie Mac. Additional guidelines include: size of down payment, debt-to-income ratio, and credit history.

Non-Conforming
A loan that exceeds the lending limits set by both Fannie Mae & Freddie Mac, typically referred to as “Jumbo Loans”. These could come with higher interest rates, additional upfront costs and even insurance requirements.

Types of Mortgages:

Fixed Rate Mortages
Conventional Loans are typically “fixed-rate” loans that have terms set to 10-30 years in which it has a set Interest Rate for the life of the loan. Payments will not change unless your taxes or Homeowners Insurance fluctuates up or down. A fixed-rate mortgage loan could be the best option for a borrower who would prefer the comfort of a stable (principal and interest) payment for a fixed period of time.

Adjustable Rate Mortgages
These are loans with a variable interest rate that change based on a “mortgage index” such as the Libor, COFI, or MTA. Adjustable Rate Mortgages (ARM) are a little more complex than Conventional in determining which is best suited for your needs.

Down Payment Options for Conventional Mortgage Loans

During our initial consultation, we will discuss multiple options available to you when it comes to making a down payment on a property you are looking to purchase.

Down payment options: 5% – 19.99%
- Borrower paid up-front mortgage insurance (One time payment)
- Lender paid up-front mortgage insurance (One time payment)

*Please note that the interest rate is typically higher for a loan with lender paid mortgage insurance than a comparable loan with borrower paid mortgage insurance.

Monthly mortgage insurance
Option to put 20% or more down and not have any mortgage insurance
Three active trade lines of 12 months or more. (May also provide alternative trade line for 12 months. ex. cell phone bill, cable bill, electric bill in your name)

Home Buying Process for Conventional Mortgage Loans

When it comes to buying a home, the process can be very. If you have questions about anything at any time, please do not hesitate to reach out and contact me.

Step 1

To start the process, you will need to provide me with the following information:

Name
Current address
- Rent or own?
- How many years you have lived at the property?
- Will need at least two years of history
If you own your property
- Purchase price
- Year purchased
- How much you paid
- How much you owe
Contact phone number
Date of birth
Social security number
Name of the company you work for
Title
Years of experience (Need at least two years of history)
How you are paid? (Hourly, salary, bonus, commission)
Financial Reserves
- Checking Account
- Savings Account
- Money Market Account
- Mutual Funds
- IRA
- 401k
Do you own any other property? If so, please provide the following:
- Primary residence
- Second home
- Investment property

Step 2

Next, I would need your permission to pull and review your credit report. We will go over your credit report in detail before proceeding to the next step.

Also, during this call I will explore the different scenarios regarding down payment, monthly payments, and the term of the loan. There are also closing costs, prepaid items, and other inspections that we will discuss as well. I will make sure to explain everything thoroughly so you can understand the full extent of the process and are comfortable moving forward.

Step 3

Once I complete filling out the necessary paperwork, I will send a pre-qualification letter to you and/or your realtor to make an offer on the home you are looking to purchase.

Excellent

Based on 152 reviews

Lori Catania

June 15, 2023

Ethan was referred to me by a very good friend who held him in high esteem. Ethan worked hard and went above and beyond for me, not once but twice. Working through the stages of obtaining a mortgage can be scary and overwhelming at times, but Ethan made himself available to answer all my questions, sometimes more than once, so that I could make knowledgeable decisions that were right for me. He understood my circumstances and was patient and understanding. I would recommend Ethan in an instant to anyone looking to obtain a mortgage.

Christopher Oliver

April 4, 2023

Ethan Baumholtz. There are very good mortgage people, and then there is Ethan. He was exceptional in his communication with us. His knowledge about the industry, steps to be taken, things to look for, planning ahead, going over your options, and educating you on the process, I have never encountered that level of excellence. This is one member of your company that I would never want to lose. I do not endorse people easily, but in this case he is a true asset to the point where I would not want to use anyone else in the future for myself, and I will absolutely refer anyone I know who wants to buy a house to him to handle it personally, with a touch and unparalleled customer service. Never have I seen someone as dedicated and genuine than Ethan Baumholtz. Sincerely Christopher and Jessica Oliver.

Chris Becker

March 15, 2023

Ethan is absolutely the best in the world at what he does. There's no one more professional and thoughtful than Ethan. When it came to the whole process, he ensured my wife and I were well informed through the entire process, and had a deep understanding of everything that occurred. If it wasn't for him, our deal likely wouldn't have worked out as smoothly as it did!

Michelle Novella

March 7, 2023

We were very pleased with our experience. Informative and helpful guiding us in the right direction.

Wendy Mondelli

November 1, 2022

Ethan Baumholtz knows his stuff and offers guidance / recommendations without pressure. He is a great communicator, took personal interest in our needs, laid out the plan and process early on and worked closely with our realtor to keep things on track. He kept us informed every step of the way, was a great advocate for us and worked very hard to secure a great interest rate; considering what they are now. He traveled to our place for everything he needed and it really could not have been easier. In the end, we had no issues, closing went on time and we now own a beautiful home. Oh, let’s not forget about the home made chocolate covered crispy treats he makes for his clients and his check-ins after the closing to see if we want him to drop off more!!!

Chae Yang

October 19, 2022

Ethan was very available and pleasant to work with!

John Bullock

June 7, 2022

Nothing but great words for Ethan. We purchased in Ventnor, NJ and Ethan walked us through every step of the process, completely keeping us informed of the process that made our experience less stressful. At the end, we got our summer place and Ethan got a new friend. Well done, Ethen, well done!

Craig Carlisle

May 17, 2022

Ethan went above and beyond in every aspect of the process from beginning to end. He is very knowledgeable and delivered on every commitment he made.

Debbie Fein

April 7, 2022

Third mortgage in 2 years!! So professional courteous and on their game. Highly recommend

Required Documents for Purchasing a Home

Please make copies of the following items:

W-2s for the last two years
One month most recent pay stubs
Two months most recent bank statements (All pages included)
Color copy of driver’s license
Copy of social security card, or valid passport
Most recent statements for other reserves

Please make copies of the following if you own any property:

Current mortgage statement
Current tax bill
Current homeowner’s policy (Declarations pages)
Flood insurance policy (If applicable)
Self-Employed and/or Ownership of Investment Properties: Full Tax Returns for 2 years

Inspections

Home Inspection
Termite Certification
Survey (If applicable)
Appraisal

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