What Is A Conforming Loan?
A conforming loan is any loan amount that is less than or equal to $484,350 . This limit is set by both Fannie Mae and Freddie Mac. Loan limits change each year. Fannie Mae approves conforming loans through it’s automated system called Desktop Originator. Freddie Mac approves loans through it’s automated system called Loan Prospector. Although Fannie Mae and Freddie Mac both approve conforming loans, they have some differences.
What’s the Difference Between Fannie Mae & Freddie Mac Loans?
Freddie Mac tends to be easier for lower fico VA borrowers to obtain loan approval. Fannie Mae tends to offer more property inspection waivers on conforming loans. Fortunately, you the buyer don’t have to worry about the difference. When you go through the prequal process, your loan officer will run your loan through each of the different systems and determine which one is a better fit based on your needs.
How Long Does It Take To Close On A Loan?
Typically, it takes 30 days to close. However, in some cases when borrowers provide us with their documenation upfront, we can close in 21 days. If borrowers don’t provide us with documentation upfront, then that’s when it takes 30 days to even 45 days or longer to close. Therefore, it’s always best to provide us with all loan documenation upfront so that we can close on time.
Need a rate quote? Since your fico score and your loan amount determine your interest rate, it’s best to call in for a rate quote. There is no one shop interest rate for everyone. In today’s environment, borrowers with a high fico score will received a much better rate compare to someone with a 620 fico score.
Thinking About Obtaining A Loan?
Make sure you clean up your credit first since your fico score will determine your interest rate.
For information on our loan products, pick up the phone and call 602-358-8717.