If you’re shopping for a home in Lubbock, you’re probably doing the same mental math every buyer does. What can you comfortably afford each month? What kind of down payment makes sense, and how do you avoid getting boxed into a loan that looks fine on paper but feels tight in real life? The home financing landscape can feel overwhelming, so let’s break down the home-buying process in a way that makes sense.
A conventional loan is a mortgage that isn’t insured or guaranteed by a federal agency. It’s offered by private lenders and follows guidelines set by Fannie Mae and Freddie Mac, the two federally regulated agencies that buy and guarantee mortgages.
When a loan meets those guidelines, it’s called conforming because it “conforms” to the limits and standards those agencies require. If it doesn’t meet those rules because the loan amount is too large or the borrower’s profile doesn’t meet the criteria, it’s considered non-conforming.
Non-conforming can also mean the loan doesn’t meet certain standard criteria, like unique property situations or guideline exceptions that push it outside typical conventional boxes. In practice, though, for most buyers, non-conforming means jumbo.
In a market like Lubbock, where median home prices are comfortably below the national average, most buyers find that conforming loans provide the perfect balance of flexibility and affordability.
Conventional loan guidelines can vary by lender, but the same basics usually apply. Here’s what typically matters most.
A minimum score of 620 is required, but higher scores earn better rates. If you're in the 700s or above, you will get the best interest rates.
Lenders typically want your total monthly debt payments, including your new mortgage, to be no more than 43% of your gross monthly income.
While putting down 20% helps you avoid private mortgage insurance (PMI), you can qualify for a conventional conforming loan with as little as 3% down if you're a first-time homebuyer. For repeat buyers, 5% is typically the minimum.
Lenders generally want to see at least two years of steady employment, ideally in the same field. You'll typically need to document income with pay stubs, W-2s, and tax returns.
The home must be appraised and meet standard livability requirements. Conventional loans usually don't require the same level of property condition review as some government programs.
The home purchase price must be below the county's conforming limit to qualify for a conventional loan.
Getting pre-approved for a conventional conforming loan before you start house hunting gives you a clear advantage in Lubbock’s market. Sellers take your offers more seriously when you’ve already secured financing, and you’ll know exactly what price range to focus on.
Remember, the best mortgage isn’t just about getting approved. It’s about securing terms that keep you financially comfortable, both now and in the years ahead. Take time to understand what you’re signing up for, ask questions when something isn’t clear, and make sure the monthly payment fits your budget with room to spare.
Q: Do conventional loans only apply to primary residences?
A: No. They can also be used for second homes or investment properties, though requirements may be slightly stricter.
Q: How long does it take to close on a conventional conforming loan in Lubbock?
A: Most conventional loans close within 30 to 45 days, though this timeline can vary based on how quickly you provide documentation and whether any issues arise during the appraisal or title search.
Q: Is PMI required on a conventional loan?
A: If you put less than 20% down, PMI is typically required. The good news is that conventional mortgage insurance is often removable once you reach sufficient equity, based on the loan terms and guidelines.
Q: How long does it take to close on a conventional conforming loan in Lubbock?
A: Most conventional loans close within 30 to 45 days, though this timeline can vary based on how quickly you provide documentation and whether any issues arise during the appraisal or title search.
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Whether you’re a first-time buyer or looking to move into your forever home, our experienced mortgage team is here to guide you through every step of the process, from pre-approval to closing. Call us today at (877) 280-4833 to discuss your home financing needs and get started on the path to homeownership in West Texas.
