Have you been wondering about jumbo loans? If you’re thinking about buying a home, you may have heard of the term ‘jumbo loan’ before. What exactly does this type of a loan entail? Read on to find out more details about this type of loan
All About Jumbo Loans
As you may have guessed, jumbo loans involve higher amounts of cash than the average loan. If the amount of money you need to borrow exceeds loan-servicing limits, these loans might be an option for you. The limits are different depending on where you live. For example, in the continental US, the limit is $453,000. But if you live in a higher-cost area, the limit is a lot higher. Just because they’re bigger doesn’t mean they’re complicated. Nowadays, these loans are more attainable than in previous years.
A great value of jumbo loans is that you’ll probably only have to take out one loan. So, instead of worrying about the interest rates and everything else that comes with taking out two loans, you’ll only have to worry about one. This is one of the best benefits of jumbo loans.
To qualify for a jumbo loan, you’ll have to meet a few requirements. For example, you’ll need to be able to pay about 20% upfront as a down payment. You’ll need documents that show you have adequate income. This is one-way lenders can improve their trust in you. Also, you’ll need to have a good credit score. It should be at least 700, which shows that you’re reliable and responsible. Something that may disqualify you is a large amount of debt. So it’s important to be upfront with your lender.
Deciding to buy a home is a huge decision. Make sure that you look at all your options before taking the leap. For a quick quote or more information, check out the HomeRate Mortgage website to learn more.