There are a little more difficulties for people who choose to get a conventional loan than choosing a loan that has governmental guarantees.
However, the steps of the approval process are the same as for the other types of financial support. In some cases, they are just stricter.
To get approval for a loan you have to make the following steps:
- Provide the necessary documentation to show your financial solvency. Lenders will also have to check your paychecks taking the past 2 years.
- Give identity documents.
- You can get a quite different interest rate that depends on the score you have, so it will be determined.
- Think about the money you have to make a down payment. It will influence the next step. (By the way, we have the answer as to what is the minimum down payment for a conventional loan?)
- If you are not able to cover at least 20% of the house price, you will be asked to pay mortgage insurance.
- A lender will propose the definite amount of money, so you will be able to understand what house you can afford.
You can also decide in advance how much money should you borrow for a house.