“Qualifying for a Conventional Mortgage”

“Qualifying for a Conventional Mortgage”

I’m going to wait until I qualify for a conventional loan and then I won’t have to have mortgage insurance or be forced to pay out a year of home owners insurance. 

I don’t want to over pay for a home and have no money left over to make it into the home I’d want to live in and with mortgage insurance and having to pay a lot more than originally planning it will be almost impossible to save, and fix up the house to my liking without taking out another loan. 

I sometimes take for granted that my new clients understand everything that I say, even when they say they understand. A good lesson for me.

To avoid mortgage insurance for a conventional mortgage the borrower needs to put down 20%. If less than 20% there will be a monthly mortgage insurance payment. The alternative to avoiding mortgage insurance is to include it into the rate. That rate would be the same for the life of the loan or if the property is refinanced.

Also, no matter what kind of mortgage, for a home purchase a 1 year paid homeowners insurance policy is required.