First Time Home Buyer Guide

Conventional Mortgage Loan Requirements & Benefits

A conventional loan is a mortgage that is not backed by a government agency. Many lenders offer “conforming loans”, a type of conventional loan, which conform to the guidelines set by Fannie Mae and Freddie Mac. These two government-sponsored enterprises then buy the mortgages from lenders, thus reducing the risk to the lender and creating liquidity for more loans. Some lenders also offer “non-conforming” conventional loans. These include jumbo mortgages and other loans that may have unusual or riskier characteristics.

Benefits of Conventional Loans

  • Loan processing may be faster because you do not have to wait on additional government requirements.
  • Down payments as low as 3% for first time home buyers. No mortgage insurance required for down payments 20% or higher.
  • Borrowers with high credit scores and a good down payment will benefit most from conventional loans. AmeriSave offers competitively low conventional mortgage rates.
  • Some government loans come with additional fees or mortgage insurance requirements that conventional loans do not have. Private lenders set their own fees for conventional loans.  For example, AmeriSave has no loan origination fee options. Read more about government programs before applying.
  • Higher maximum loan limits.

Conventional Loan Requirements

Approval criteria varies from lender to lender. Some of AmeriSave’s general requirements for single unit home purchases include:

  • 620 minimum credit score.
  • A recent full exterior and interior appraisal.
  • Maintain current job throughout the entire loan process and make no major purchases, such as a new vehicle.
  • No manufactured or mobile homes allowed.

Do you still have questions about conventional loans? Contact us by phone or chat and an AmeriSave loan originator will be happy to answer your questions. They can help you decide whether a conventional or government loan is best for you.   They can also walk you through all of your interest rate, term, and closing cost options.

AmeriSave Unveils Multi-Channel Messaging Through Partnership With Botsplash

Atlanta, Georgia – August 13, 2018 – Today’s customers want answers instantly, and AmeriSave Mortgage Corporation, NMLS ID #1168, understands the importance of being readily available to answer their questions.

Through a partnership with botsplash, an innovative digital messaging platform, AmeriSave is now able to connect their loan originators to consumers utilizing botsplash’s centralized messaging hub to engage with prospective customers via chat, text or Facebook. Custom integrations with AmeriSave’s proprietary systems enables a seamless process. This allows loan originators the ability to engage with customers across multiple messaging platforms with ease and convenience.

Not only does this technology simplify communication for loan originators, but it reaches customers when and where they want to be reached. “We strive for customer centric innovation and forward thinking outreach.  We aspire to communicate with our customers in any medium of their choice,” states Mike Berte, President of AmeriSave.

“AmeriSave has robust in-house proprietary systems managed by an innovative and agile team. This facilitated a quick and smooth integration of our platform into their ecosystem. AmeriSave understands the importance of digital engagement, and through this partnership we are thrilled to offer a platform for loan originators and customers to interact with convenience,” said Aru Anavekar, CEO, botsplash.

“Botsplash’s intuitive messaging platform empowers our sales and operations teams.  Applicants on 16 percent of our recently originated loans communicated through this platform at various stages of the mortgage process,” said Magesh Sarma, Chief Strategy Officer of AmeriSave.

Finding A Starter Home In A Competitive Market

So you’re ready to purchase your first home. Congratulations! However, after beginning your search you may find yourself wondering, where in the world are all the starter homes?

It’s a valid question to ask considering there is somewhat of a starter home shortage in many popular housing markets. Housing inventory is pretty low and that is making home prices soar. Not a great combination for first time homebuyers.

Not all hope is lost, however! Even though the market is extremely competitive, there are still a few things you can do that will put you ahead of the pack. Check out our tips below:

  1. Get Pre-Approved

Buying in today’s market is competitive so having a pre-approval letter will help you stand out as a serious buyer to sellers.

  1. Keep an Open Mind

Your first home may not necessarily be your dream home, and that’s OK! Many first time home buyers don’t plan on staying in their first homes forever; rather, they use the home as a financial launch pad for a bigger home in the future.

  1. Use a Real Estate Agent

There’s a lot to be said about using a professional. First time homebuyers really need help from someone who knows the area when dealing with competitive markets. A great agent will know how to negotiate and they can help you with realistic expectations.

  1. Understand Your Needs

Location is a big g factor for many buyers, and sometimes affordability has to be compromised when purchasing in a hot part of town. Alternatively, an affordable home in a less desirable location could leave you compromising on commutes to work or social life. Only you can decide what’s most important to you.

  1. Make a Good Offer

You’ve found an amazing home in a desirable location at a great price, now what? Well, if you found the perfect home, other potential buyers probably have their eye on it. With your pre-approval in hand, make a strong offer!