Tulsa home buyers have a wide range of financing options, but mortgages generally fall into one of two categories: government-backed loans and conventional mortgages granted by private mortgage lenders. And while mortgages insured by the VA, FHA or USDA can be attractive for borrowers, conventional home loans should be given serious thought.
With conventional home loans, it’s possible to buy a home with a down payment of just three percent. Borrowers who put down less than 20 percent are required to pay private mortgage insurance, but after reaching 20 percent in equity, that can be canceled. And unlike government-insured fixed-rate mortgages, conventional home loans can be used to finance the purchase of a primary residence, multi-unit dwelling, investment property or a second home.
In addition, loan processing is faster with conventional financing. Mortgages backed by a government entity involve a great deal of paperwork, and delays aren’t uncommon. This can make a difference in a crowded market, when home sellers receive multiple offers – since getting to closing takes less time, taking out a conventional mortgage can give a home buyer an edge over the competition. This is especially true when you work with a trusted, local mortgage company to arrange your loan.
Conventional loans feature competitive interest rates, and borrowers who have higher credit scores receive lower rates. A diverse range of term lengths are available, and home buyers can opt for adjustable-rate or fixed-rate financing. If you’re looking for a mortgage with flexibility and want to know if you qualify for a conventional home loan, get in touch with the experienced mortgage loan lenders at PRMI Tulsa today!