Qualifying for a Conventional Mortgage Loan

Based in Springfield, MO, Michael Cataldo is a real estate agent who leads Gold Rule Realty, LLC, and provides services that help families move into the homes of their dreams. Client focused, Michael Cataldo has an in-depth knowledge of the real estate purchasing process and what it takes to qualify for a conventional mortgage.

When it comes to conventional loans, which are not government guaranteed, the guidelines are set by Freddie Mac and Fannie Mae, and are stricter than those for government-insured loans. Minimum down payments are three percent, with the money sourced either from one’s own funds or gifts from family members.

With conventional mortgage limits capped at just over $500,000, keep in mind that any such loan involving less than 20 percent down has an additional private mortgage insurance (PMI) requirement. This provides the lender with protection in case of default, and the annual premium typically ranges from 0.15 to 2.5 percent of the loan amount.

Other aspects of the conventional mortgage qualification process to be aware of include proof of steady employment or income, with the debt-to-income ratio less than 43 percent. The applicant’s credit score must exceed 620, with higher scores given preference and generating lower interest rates.

Family Grateful to Missouri Realtor for Excellent Service

A resident of Springfield, MO, Michael Cataldo is a Realtor working with Gold Rule Realty LLC. Michael Cataldo credits his success in the Springfield, MO real estate market to his passion for serving others. He enjoys helping people and regularly goes out of his way to meet their needs. This has endeared him to clients, hundreds of whom have left positive testimonials about him on realtor.com and Zillow.com. One of the satisfied clients he has served is S. Thatcher, who wanted to buy property in the city of Nixa.

The Thatchers contacted Mr. Cataldo and informed him that they wanted to buy a home. In the course of their engagement, they found him extremely knowledgeable of the area’s housing market and were pleased by his willingness to go the extra mile to help them out. He kept them informed about their financing, insurance, and home inspection options and was always available to answer their questions. He ultimately helped them find their dream home and even afterward, reached out to them to make sure they were satisfied with their new home.