Jumbo Loans
Afford High-Dollar Homes With Jumbo Loans
Everyone drives around neighborhoods filled with large homes at one time or another, pointing at them and dreaming of living in one someday. These homes might seem forever out of reach, but jumbo loans put them back in the realm of possibility.
What’s a jumbo loan? It’s a home loan used to finance pricier home purchases. These loans have more restrictions due to the high-dollar amount, but there are also opportunities to save money. Here are a couple things to do before getting a jumbo loan.
1. Figure Out How Large a Loan You’ll Need
Before buyers apply for a jumbo loan, they must figure out if they even need one. Estimates in 2022 indicate you’ll need a jumbo loan if your loan amount rises above $647,200. Anything below that amount means you’ll still apply for a normal mortgage.
2. Meet Financial Wellness Requirements
Jumbo loans are riskier for lenders, so they mandate stricter financial wellness requirements to manage risk. These requirements include having a credit score of 680, higher down payment requirements and cash reserves to cover several months of mortgage payments.
3. Research Lenders To Get the Best Deal
Different lenders offer different down payment requirements and interest rates. Shop around for the best deals. For example, many lenders want 20% down for jumbo loans while First Bank only asks for 10% down.
If you’re finally ready to buy that high-dollar dream home, talk with us and get approved for a jumbo loan today!
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