Understanding what a conforming mortgage loan. Let us start in
layman’s terms, for the state of Florida–and most states–it is a
mortgage loan less than $484,350. It meets all the standard
criteria for Fannie Mae and Freddie Mac. The criteria are set by
the Office of Federal Housing Enterprise Oversight (OFHEO) who
regulates Fannie Mae and Freddie Mac.
So, what does that mean to you, the consumer? Well, when you go
to a bank or lender and ask to borrow money to purchase or
refinance your home, the bank or lender will look to see if you
can meet the criteria for Fannie Mae or Freddie Mac.
Since the banks and lenders may only have so much money to lend,
they look for someone to purchase that mortgage loan from them.
However, they may keep the servicing of that mortgage loan. If
you do not meet the criteria and the Bank or Lender gives you
the loan, that bank or lender may have to keep the loan in
house, leaving them with a greater risk and having less funds to
lend to others. Most banks and lenders, when faced with a
borrower that cannot meet the criteria for a conforming loan,
may deny a borrower for the mortgage loan.
Our team at High Definition Mortgage, want to do our best to
make sure you can meet these criteria, before you spend over
$1,500 for appraisals, surveys, pest inspections, and home
inspections, only to be denied shortly after.
Conforming Mortgage Loans Available in Florida.
Please take the time to go through our education center to learn
about how to avoid the traps of banks and retail lenders. You
should always know the status of your credit and other
conditions for loan approval, before paying in advance of
surveys or an appraisal. Once paid, it’s near impossible to get
a refund. Talk to us before you sign an agreement with a title
company or a closing attorney. Generally, in these agreements,
you are agreeing to pay for items they will order on your
behalf. Many times, a survey is ordered prematurely.
Our Team at High Definition Mortgage will look at your total
financial profile and give you the best options to choose from.
The type of mortgage loan should be your choice, not what
someone else is trying to promote or generate a high
compensation for their office.
