Hearing these types of things could make a potential new homebuyer nervous about buying a home. Let’s debunk these myths so that you truly understand how easy it really is to secure one of these versatile loans and get the home of your dreams –
Myth #1 – You will have to wait longer for a conventional loan approval. This is a big, resounding no. Thanks to the Internet, computers allow for automated underwriting and paperless processing, so it does not take any longer to approve a conventional loan. If you are under the care of a conventional educated loan officer, the process could even go faster as the paperwork and any documentation needed is submitted all at once, instead of piecemeal.
Myth #2 – There’s a ton of extra paperwork with a conventional loan. This is another big resounding no. Conventional loans have pretty much the same amount of paperwork that needs to be filled out and submitted. They may require a few different, extra documents that need to be filled out, but they are designed to protect you while you are going through the process of securing the loan. Plus, with the ability to print off most of the documents with your demographic information – address, phone number, income, etc.
Myth #3 – You get a better deal with a conventional loan. Well, like most things, it depends. Yes, this type of loan carries fewer risks for your lender and you get charged less by them, but they are not always the better deal. Conventional loans are the better deal if you have a good income, a low debt-to-income ratio, and a great credit rating. Since these types of loans are based on risk the lower the risk the better the deal you get.
