What You Need To Be Eligible for Coral Springs Jumbo Loans
Are you thinking of splurging on a house? Have you finally found your dream home? offers Coral Springs jumbo loans to eligible borrowers. Unlike with conventional loans, you will find that each lender has their own set of guidelines that they use to determine who is eligible and who is not.
Factors such as:
- Minimum credit score
- Credit history
- Amount of cash reserve you have
- Will vary a lot from one lender to another.
To help prepare you for the jumbo loan application process, this article will cover what you will need to be eligible.
Jumbo Mortgages Equal Bigger Loans
This kind of mortgage is called jumbo because it involves more money being lend to the borrower than your ordinary conventional loan.
Think of a jumbo loan as any amount that so much that it does not conform to GSE guidelines. Just like GSE stipulated maximum vary from one county to the next, the same applies to jumbo loans. What might be considered to be a jumbo loan in one county might be considered to “conform” to GSE standards in another county.
To find out the minimum Coral Springs jumbo loan, you can reach us for more information on 888-995-6624.
No Involvement of Government Sponsored Entities
Once a lender buys your mortgage they sell it to one of the financial corporations created by Congress, that is, Freddie Mac or Fannie Mae who then, in turn, sell the mortgage on Wall Street.
Mortgages sold to either one of these corporations have to “conform” to set guidelines otherwise they will not be bought.
Jumbo loans are not conforming loans in the sense that they exceed the maximum set by GSEs. Consequently, they are not sold to them instead lenders keep these mortgages on their own books or purvey them to other investors that might be interested.
By lending you a greater amount of money, the lender is exposing themselves to bigger risk. So, they will ask for proof that you are creditworthy before they give you the jumbo loan.
Before giving you a jumbo loan most lenders will require that you have a credit score no less than 680 and in some cases as high as 700.
In addition, lenders might ask to see your rental record for the last one year so that they can determine how good you are at managing debts.
Get Ready To Submit More Paper Work
There are very stringent guidelines you have to satisfy when applying for a jumbo loan. The documentation of a jumbo loan is more taxing.
For example, if the borrower is self-employed the lender might require that they provide 2 years’ worth of tax returns and not one.
Also, lenders require seeing proof that you have more than one source of income.
Jumbo Loan Rates Have Dropped
There was a time when jumbo loans attracted high interests. This is no longer the case. The interest rates for conforming mortgages and jumbo loans is almost similar and in many cases, jumbo loans attract a lower interest rate.
The cause of the fall in interest rates can be credited to the fact that there is a significant market for jumbo loans. The demand for Coral Springs jumbo loans has led to a reduction in high-interest rates.
Also, there is a realization in the industry that jumbo loan borrowers rarely default.
Proof of Cash Reserves
When you apply for a conforming loan, the lender needs to see proof of enough cash reserves to take care of your payments for the next couple of months. It is no different when you apply for a jumbo loan.
Many lenders will ask to see proof that your cash reserve is sufficient to take care of payments for the next 6 to 12 months. By demonstrating that you can take care of your debt for the next couple of months you make the jumbo loan look less risky for the lender.
If you want a jumbo loan to finance the purchase of a second home you can expect that the lender will ask to see proof of even larger cash reserves.
Private Mortgage Insurance
When a lender agrees to give a loan with less than 20% down payment, you can expect them to reflect it on the mortgage rate.
When applying for a jumbo loan ask yourself whether it is a good fit for you. Determine if there is any financial difficulty on the horizon that may affect your payments. Also, sometimes, the property’s high value might be as a result of volatility. Perhaps if you wait a bit longer the prices will come down.