Conventional loans are the most common type of real estate loan. They are not insured by the government, so they typically have stricter credit and income requirements than government-insured loans.

The maximum LTV ratio for a conventional loan is 80%. This means that the borrower must make a down payment of at least 20% of the purchase price.

Fixed-rate mortgages have a fixed interest rate for the life of the loan, while ARMs have an interest rate that can change over time. ARMs typically have a lower initial interest rate than fixed-rate mortgages, but the interest rate can increase over time.

The most common type of ARM is the 5/1 ARM. This means that the interest rate is fixed for the first five years of the loan, and then it can adjust once per year after that.

The maximum DTI ratio for a conventional loan is 43%. This means that the borrower's total monthly debt payments, including the mortgage payment, cannot exceed 43% of their gross monthly income.

The purpose of a MIP is to protect the lender in case the borrower defaults on the loan. The MIP is paid by the borrower and is typically added to the monthly mortgage payment.

A first mortgage is secured by the property, while a second mortgage is not. This means that if the borrower defaults on the loan, the lender can foreclose on the property and sell it to satisfy the debt. A second mortgage is more risky than a first mortgage because the lender is not secured by the property.

The maximum loan amount for a conventional loan is $625,500. This limit is set by the Federal Housing Finance Agency (FHFA).

A pre-approval is a more formal commitment from the lender than a pre-qualification. A pre-approval is typically based on a more thorough review of the borrower's financial information than a pre-qualification. A pre-approval also typically includes a specific loan amount and interest rate.

The purpose of a home inspection is to identify any major defects or problems with the property, to determine the value of the property, and to help the buyer negotiate a lower purchase price.

A title insurance policy protects the lender in case there is a problem with the title to the property. A homeowner's insurance policy protects the borrower in case the property is damaged or destroyed. A title insurance policy is typically more expensive than a homeowner's insurance policy.

The purpose of a closing statement is to summarize the terms of the loan and the costs associated with the purchase of the property, to transfer the title of the property from the seller to the buyer, and to record the mortgage with the county recorder.

A deed transfers the title of the property from the seller to the buyer. A mortgage secures the loan that the buyer used to purchase the property. A deed is typically recorded with the county recorder. A mortgage is typically recorded with the county recorder.

The purpose of a real estate agent is to help the buyer find a property that meets their needs, to negotiate the purchase price of the property on behalf of the buyer, and to help the seller prepare the property for sale.