Conventional Mortgage

OPENING DOORS, BUILDING DREAMS IN NORTH-CENTRAL UTAH

Do you dream of becoming a homeowner? A home of your own is more than just a space for you and your family to live. It’s a place to make memories and build wealth. A conventional mortgage is the most popular way to open the door to homeownership while helping to secure your family’s long-term financial stability.

WHAT IS A CONVENTIONAL MORTGAGE?

A Conventional Mortgage is simply a fixed-rate mortgage loan that is not insured or guaranteed by the federal or state government.

While you’ll generally have to make a larger down payment and pass higher income and credit requirements, a conventional loan lets you lock in the lowest interest rates today, so you can begin to build equity while freeing up cash to save or spend.

HOW TO APPLY FOR A CONVENTIONAL MORTGAGE IN UTAH

FAQs ABOUT CONVENTIONAL MORTGAGES

• What is a conventional mortgage loan?

  A conventional loan is a type of mortgage (typically a 5, 10, 15 or 30-year fixed rate loan) that is not backed by the government (such as FHA, USDA, or VA loans). Instead, it is offered by private lenders like credit unions and banks and follows guidelines set by Fannie Mae and Freddie Mac.

• Do you have to put 20% down on a conventional loan?

  No, conventional mortgage loans may be available with down payment amounts as low as 5%, depending on your income and credit history. However, whatever your loan type, the less you are able to put down, the more likely it is that you will also need to pay for private mortgage insurance (PMI).

• Is it hard to get approved for a conventional loan?

  Conventional loans typically come with stricter eligibility requirements than government-backed loans, but they’re not necessarily hard to get if you meet the lender’s criteria. It depends on your credit score, income, debt, and down payment.

• What is needed to get preapproved for a mortgage?

  To get preapproved for a mortgage, you’ll need to provide financial documents that show your income, assets, debt, and credit history.

  • Government-issued ID (driver’s license or passport)
  • Social Security number (for a credit check)
  • Recent pay stubs (last 2-3 months)
  • W-2s or 1099s (last 2 years)
  • Tax returns (last 2 years)
  • Bank statements (last 2–3 months)
  • Proof of any other income sources (bonuses, rental income, alimony, etc.)
    Monthly debt payments (credit cards, student loans, car loans)

• Is it good to get pre-approved for a mortgage?

  Is it good to get pre-approved for a mortgage?

• Is it a hard pull to get pre-approved for a mortgage?

  Yes, getting pre-approved for a mortgage requires a hard credit pull, which can slightly lower your credit score. However, the effect is small and temporary, especially if you have a good credit history, and multiple mortgage inquiries within 45 days count as one inquiry for credit-scoring purposes.

• What is a good credit score to get pre-approved for a mortgage?

  A credit score of at least 620 is typically the minimum needed for pre-approval on a conventional loan. However, a higher score gets you a better interest rate and more flexible terms. If your score is below 700, improving it before applying can help to lower your interest rate and will save you money on your monthly mortgage payments over the life of the loan.

• Where can I find the best local rates for a conventional mortgage?

  For the best deals, come talk to us at Wasatch Peaks Credit Union. We offer some of the lowest 30 year mortgage rates in Utah.

• Do I need to join Wasatch Peaks Credit Union to open this account?

  Yes, you need to join the credit union, and becoming a member is easy! You simply need to meet these criteria:

  • You are an immediate family member of an existing member-owner, such as a parent, child, brother, sister, spouse, or surviving spouse.
  • You live, work, worship, or attend school in Weber, Morgan, or Davis Counties in Utah.

OPEN YOUR ACCOUNT OR CONTACT US FOR MORE INFORMATION

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