Buying a home is one of the most significant financial decisions you’ll ever make—and getting the right mortgage is a big part of that process. If you’re planning to go the traditional route, a conventional mortgage may be the ideal solution. These loans aren’t backed by a government agency, which means they offer flexibility, competitive rates, and a wide range of terms.
In this guide, we’ll walk you through everything you need to know about how to get a conventional mortgage, step by step.
What Is a Conventional Mortgage?
A conventional mortgage is a home loan that is not insured or guaranteed by the federal government. It typically follows guidelines set by Fannie Mae and Freddie Mac, two government-sponsored enterprises.
Conventional loans come in two forms:
- Conforming loans (meet Fannie Mae/Freddie Mac guidelines)
- Non-conforming loans (don’t meet those guidelines, such as jumbo loans)
These loans are ideal for borrowers with strong credit, stable income, and the ability to make a down payment—often at least 3% to 20% depending on the lender.
Step-by-Step Guide to Getting a Conventional Mortgage
1. Check Your Credit Score
Lenders typically require a credit score of 620 or higher for conventional loans. However, a score above 740 may qualify you for better interest rates.
Tip: Before applying, request a free copy of your credit report and address any errors or negative marks.
2. Determine Your Budget
Use a mortgage calculator to estimate how much you can afford. Consider your:
- Monthly income
- Existing debts (credit cards, auto loans, etc.)
- Property taxes and insurance
- Potential HOA fees
Lenders usually follow the 28/36 rule:
- No more than 28% of your gross income should go to housing costs
- No more than 36% should go to total debt
3. Get pre-approved
A mortgage pre-approval shows sellers you’re a serious buyer. The lender will evaluate your:
- Credit report
- Employment history
- Income documentation
- Bank statements
- Tax returns
This process results in a pre-approval letter, which strengthens your offer in a competitive housing market.
4. Choose the Right Lender
Not all lenders are created equal. Compare:
- Interest rates
- Loan terms
- Closing costs
- Customer service reviews
You can go through a bank, credit union, mortgage broker, or online lender.
5. Submit Your Mortgage Application
Once you’ve found a home and your offer is accepted, you’ll complete the full mortgage application.
You’ll need to provide:
- Pay stubs and W-2s
- Bank statements
- Tax returns
- Asset and debt info
Be prepared for a hard credit check and a detailed underwriting process.
6. Home Appraisal and Inspection
Your lender will order a home appraisal to verify the property’s value. While not always required, a home inspection is strongly recommended to identify any issues before closing.
7. Loan Underwriting
During underwriting, the lender verifies all your financial information. They’ll check:
- Debt-to-income ratio (DTI)
- Creditworthiness
- Property appraisal
This can take anywhere from a few days to a few weeks. Respond promptly to any documentation requests to avoid delays.
8. Closing Day
Once you’re approved, you’ll receive a Closing Disclosure outlining final costs. On closing day, you’ll:
- Sign the final paperwork
- Pay closing costs and down payment
- Get the keys to your new home!
Final Thoughts
Getting a conventional mortgage doesn’t have to be overwhelming. By understanding the steps, preparing your finances, and choosing the right lender, you’ll be on your way to securing the home of your dreams with confidence.
If you’re ready to take the next step, contact our mortgage experts today. We’re here to guide you through every stage of the loan process—from pre-approval to closing and beyond.
