Before you even consider looking at new homes, you need to take your mortgage into consideration. According to the 2017 NAR Home Buyer and Seller Generational Trends report, almost 98% of buyers under 36 used a mortgage to finance their homes. And while there are multiple types of mortgage loans out there, we’re here to make the case for conventional mortgage planning. Here are just a few of the best reasons you should consider taking the conventional route.
Cater to Home Sellers
As with any large purchase, the type of loan you’re using matters to the seller. When a seller is faced with a choice between a simple financial procedure and a complex one, it’s much more likely that they’ll go the simple route. And while there are multiple mortgage planning options available to you, a conventional mortgage is often the one that sellers feel most comfortable with.
Fewer Steps Involved
If you’re looking for a fast close, conventional is absolutely the way to go. Other types of loans typically require extra steps in their underwriting processes. These may include verifying funds, sending special appraisers, or checking your eligibility for certain programs. But every single one of those extra steps is another thing standing between you and closing on your new home.
While conventional mortgages do have their specific requirements, they also offer a bit more flexibility in other areas. For example, lenders can take liberties to overcome issues such as medical debt with a manual underwrite. The overall process may take longer, but these types of liberties can make attaining funding much simpler.
Decreasing Closing Costs
When you’re closing on a home, a conventional mortgage makes everything easier. Since they’re relatively simple to prepare, they create much lower closing costs. In addition, no upfront mortgage insurance requirement drives costs down even more.
Trouble Deciding on a Mortgage Plan?
If you’re having trouble deciding which mortgage plan is best for you, there’s a solution. Here at Platinum Lending Solutions, we have a skilled team of professionals who are ready to help you. Mortgage brokers like our very own Stacy Schlesinger can help you get organized and plan a mortgage that works for you.