Understanding the Basics of a Conventional Mortgage

When you are looking to buy a home or refinance in Centennial, Colorado, choosing the right loan is a critical step. A conventional fixed-rate mortgage, often simply called a conventional mortgage, is one of the most popular financing options available today. Unlike government-backed loans, a conventional mortgage is offered by private lenders and follows guidelines set by Fannie Mae and Freddie Mac.

At Choice Mortgage Group RJ Baxter Team, we specialize in helping homebuyers navigate the complexities of home financing. Whether you are a first-time buyer or looking to secure a 30-year fixed-rate mortgage, we communicate in terminology you will understand. We are also experts at providing second opinions on conventional mortgages to ensure you are getting the best possible terms for your financial situation.

Conforming vs. Non-Conforming Conventional Loans

It is important to understand that conventional mortgages fall into two main categories: conforming and non-conforming loans.

• Conforming Loans: These loans meet the specific funding criteria and loan limits set by the Federal Housing Finance Agency (FHFA). They are ideal for homebuyers with good credit and a stable income.
• Non-Conforming Loans: These loans exceed the FHFA loan limits or fall outside standard guidelines. A common example is a jumbo mortgage, which is necessary for purchasing luxury properties or homes in highly competitive markets.

If a conventional loan does not fit your current credit profile or down payment ability, you might want to explore alternatives like an FHA purchase loan. Our dedicated team in Centennial is always ready to review your unique scenario and offer a professional second opinion on your conventional mortgage options.

Feature	Conforming Conventional Mortgage	Non-Conforming (Jumbo) Mortgage
Loan Limits	Adheres to annual FHFA limits	Exceeds FHFA loan limits
Credit Score Requirement	Typically 620 or higher	Usually 700 or higher
Down Payment	As low as 3 percent for first-time buyers	Typically 10 to 20 percent or more
Interest Rates	Highly competitive	Slightly higher due to increased lender risk

Why Choose Choice Mortgage Group for Your Home Loan

Finding the right home loan requires careful consideration of your needs, finances, and history. The Choice Mortgage Group RJ Baxter Team is proud of the level of service we provide to our clients across Centennial and the greater Denver marketplace. We value honesty, hard work, and responsiveness to your needs.

Our clients consistently praise our high level of communication and follow-up. We know you do not do this every day like we do, so we use common sense and avoid complicated real estate jargon. If you already have a quote from another lender, reach out to us. We are experts at providing second opinions on conventional mortgages to make sure your rate and terms are truly competitive.

Q1: What is a conventional fixed-rate mortgage?

A conventional fixed-rate mortgage is a home loan that is not backed by a government agency and features an interest rate that remains the same for the entire life of the loan.

Q2: What credit score is required for a conventional mortgage?

Most lenders require a minimum credit score of 620 for a conventional mortgage, though a higher score will help you secure a better interest rate.

Q3: How much down payment do I need for a conventional loan?

First-time homebuyers can often qualify for a conventional mortgage with as little as a 3 percent down payment, while repeat buyers typically need at least 5 percent.

Q4: Should I get a second opinion on my conventional mortgage offer?

Yes, we highly recommend it. We are experts at providing second opinions on conventional mortgages and can help you verify if you are getting the best terms available.

Q5: Can I use a conventional mortgage to buy an investment property?

Yes, conventional mortgages can be used to purchase primary residences, second homes, and investment properties, unlike many government-backed loans.Contact the RJ Baxter Team Today for Your Custom Quote