Banc Services Group is equipped with the latest in industry technology which allows us to streamline the process of a closing a conventional loan in Tennessee. Through advances in automated underwriting, we are able to pre-approve most of our conventional loan clients within hours of receiving an application. Upon obtaining an approval, we will issue a commitment that will remain valid throughout the home-buying process. This means that if your client is planning for new construction or simply needs more time to locate the perfect home, you can rest assure that their loan will be ready when they are.
We maintain relationships with multiple conforming investors that underwrite both Fannie Mae and Freddie Mac loan programs. This helps insure that your client will have access to all available programs instead of being limited to one form of underwriting. Along with offering 100% of the conforming loan programs available in today’s market, we utilize wholesale pricing for conventional loans in Tennessee. This means that we are able to offer interest rates that are often times below the market average. Additionally, we can offer extended locks at reduced costs.
Although we strive to be leaders in pricing, our primary focus is on customer service. We realize that our agents and their clients have a wide range of mortgage companies from which to choose. That is why we make every effort to provide our agents and borrowers with exemplary service. We go the extra mile by making ourselves available 7 days a week to take applications, underwrite loan approvals and issue commitment letters. We work to help educate our partner agents and their clients about the lending process by adhering to an “Open Book” policy. This means we welcome the opportunity to share detailed information regarding our industry and about the inner workings of the underwriting process.
Frequently Asked Questions
What are the Conventional Loan Requirements?
To decide if you qualify for an Conventional Mortgage Loan, we will look at:
- Your income and your monthly expenses. Standard debt-to-income ratios are 28/36 for Conventional Loans. These ratios may be exceeded with compensating factors.
- Your credit history (this is important, but Conventional credit standards are slightly flexible). A FICO score of 640 or above is very helpful in obtaining an approval.
- Your overall pattern rather than to individual problems you may have had.
What are the Conventional Down Payment Requirements?
Conventional Loans require the home buyer to invest at least 5% - 20% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $5,000 - $20,000.
What will be my Interest Rate?
The interest rate for your home loan will be determined by the type of loan program that you qualify for and your credit score. You might be asking yourself what is the formula to calculate interest rates? Interest rates are driven off of Mortgage Backed Securities (MBS) which are commonly referred to "mortgage bonds". These value of these bonds determine whether the interest rates rise or fall. Your final rate will determine your payment using the standard calculate mortgage payment formula. Please contact one of our loan officers to see what is todays lending mortgage rate.
What types of property are eligible?
While Conventional Mortgage Guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional Loans can be used to finance primary residences, second homes and investment property.
Can I get an Conventional Mortgage Loan after bankruptcy?
Criteria for Conventional loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for four years or more, you are eligible to apply for an Conventional mortgage. If you have had a Chapter 13 bankruptcy, it must be documented that the your credit reputation has been re-established for at least two years to be eligible for a Conventional Loan Application.
What Kinds of Loans do Conventional Programs Offer?
Fixed rate loans - Most Conventional Mortgages are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same for the entire loan period. With a fixed rate Conventional Mortgage, you always know exactly how much your monthly payment will be. Contact us for today's free Conventional mortgage rates.
Adjustable rate loans - With a conventional adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. Conventional Loans mainly use the Constant Maturity Treasury Index (CMT) or the London Interbank Offered Rate Index (LIBOR) to calculate the changes in interest rates. Conventional ARMS are offered with initial fixed rate periods of 3 years, 5 years, 7 years and 10 years.
Loan Programs 
