The phrase “Jumbo loan” can be intimidating to homebuyers, but it does not need to be. There are many misconceptions about Jumbo loans. However, qualifying for a Jumbo loan could be easier than you think, and your mortgage could be more affordable than you expect. Following are a few facts about Jumbo loans you may not know.
1. Even though Jumbo lending criteria is stricter than Conventional lending criteria, it isn’t much different. Qualifying for a Jumbo loan requires a stronger borrower profile.
You will need a solid credit score (minimum 680), a debt-to-income ratio of around 43% or less, six months to a year of cash reserves, and possibly two appraisals of the property you want to buy.
It helps to plan as far in advance as possible when applying for a Jumbo loan. Texas Property Lending Inc can provide you with advice for improving your financial metrics, for you to qualify.
2. Your down payment doesn’t need to be exorbitant.
Although Jumbo loan down payments can exceed conventional loan down payments, depending on your other qualifications and the loan options available to you, your down payment could be just 10% to 20%.
3. Interest rates can be affordable.
A common misconception regarding jumbo loans involves their interest rates. As with down payments, interest rates on jumbo loans may exceed interest rates for conventional loans.
However, this too is not a rule. Many jumbo loans have interest rates comparable to those for conventional loans for the same area, and this makes them quite affordable both now and over the long term.
4. We can save you money on fees.
Due to the larger loan size, although total fees paid on a jumbo loan tends to outpace those for conventional financing; However, there are opportunities to save money here as well, and we at Texas Property Lending Inc can offer you one you are not going to find just anywhere.
If you work with our affiliated real estate brokerage, Texas Property Realty, we, Texas Property Lending Inc can reduce your fees significantly through service bundling, potentially saving you up to many thousands of dollars.
At Texas Property Lending, we keep the jumbo loan application process as simple and streamlined as possible, while helping you qualify for an affordable down payment, competitive interest rates, and some of the lowest fees around. If you are ready to save money on a jumbo loan in Texas, please call 713-995-LOAN (5626) to schedule your consultation.