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 163 reviews
Andrew Jacobs
Andrew Jacobs
November 16, 2023
Ethan is now my go to guy for my mortgage and refinancing needs. He was knowledgeable and answered all of the questions that we had, day or night. He showed up at our house at 9pm when we told him that was the most convenient time for us. That kind of service is unheard of, but Ethan does it. He worked cooperatively with the realtor and title agency to get the deal done! Ethan was an absolute pleasure to work with and I would recommend him to all of my friends and family!
Tracy Derkas
Tracy Derkas
November 10, 2023
Ethan Baumholz was very informative and attentive. He kept me informed and worked around the clock to make my refinance happen. I appreciated his positive and supportive attitude.
Michael Carpentieri
Michael Carpentieri
October 31, 2023
Ethan was amazing form beginning to end of this process. He stepped in for us after our original lender dropped the ball and he picked it up and ran. He was professional, attentive, and thorough through out this home buying process. Thanks to his hard work and efforts we were able to close on our dream home within in 23 business days.
Marie Vicinanza
Marie Vicinanza
October 30, 2023
We are both fortunate to have met Ethan. Ethan helped us refinance our home in a caring and professional manner explaining the process, answering all our questions and always answering our phone calls. He is extremely knowledgeable, providing you options and the best route to go. Ethan made the process smooth and unstressful and most importantly kept us posted each step of the way. Ethan treated us like family, always went the extra mile and always with a smile. Ethan is a true professional, with exceptional knowledge and wisdom. We recommend Ethan to help with your mortgage and refinance needs.
Eric
Eric
October 15, 2023
Ethan is the definition of a professional at what he does. The process we went through to get our house was smooth and simplistic. This man will do everything in his power to get your family into the house of your dreams. Unlike other “professionals” in the mortgage industry. Ethan’s phone is always open and will take calls at 6 A.M. or even 10 P.M. Regardless of your situation he will do everything In his power until “your keys are in the door” to your new property. Going forward I will use Ethan for EVERY property I own and couldn’t be more satisfied with the service he provided. Thank you for working your magic… the DeKarski Family
Donna Krowirz
Donna Krowirz
September 8, 2023
We had a worry free experience with our new townhome closing. Ethan Baumholtz was our warrior and cleared all obstacles so we had a smooth closing with no unexpected problems. Ethan is a true professional and we recommend him to everyone.
Michael Krowitz
Michael Krowitz
September 8, 2023
To reiterate, Ethan Baumholtz was a true partner in making our deal come to fruition. The man is the commensurate professional with high moral standards and a work ethic that is extraordinary in todays business climate. We did not experience any obstacles because Ethan was out in front and cleared the way for a smooth settlement. Cannot say enough about his performance. We will recommend Ethan to everyone that we know who is looking for a home or to refinance, there is never a concern about his ability to satisfy friend and family needs.
Francine Lepore
Francine Lepore
August 13, 2023
Ethan is the ultimate professional who will do the utmost best for his clients. I highly recommend him.
mark reynolds
mark reynolds
August 4, 2023
Hands down Ethan is the best! He is always available, very attentive to all my needs, whenever I call weekdays or weekends. He is very knowledgeable, I wouldn’t use anyone else. Give him a call and you will see for yourself and you’ll be surprised how easy he makes the process. You will not be sorry.
Michael Rose
Michael Rose
July 31, 2023
I recently worked with Ethan on a second home mortgage and he was fantastic. Ethan’s approach to customer service is second to none. He is a great communicator and was always available when we needed him even if we just had a question about the process. This was more than just a transactional process it felt more like a personal customer experience. You always feel like Ethan has your back through the entire process. We were spoiled and we will never use anyone else for any of our lending needs. Thanks E!

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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