Looking into purchasing a home in Virginia that requires more financing than conforming mortgages provide? A jumbo loan can help you buy your dream home. Below, we go over a few things you should know about jumbo mortgages before you apply.
5 Things You Should Know About Jumbo Loans
- Advantages. First of all, it is helpful to understand the benefits of jumbo loans. As we just discussed, jumbo loans allow you to break free of the constraints of conforming loans. With a jumbo loan, you may be able to afford a home that is larger or more luxurious than would be possible with conforming financing. A jumbo loan could also make the difference between being able to buy your dream home now while it is available or waiting and missing out.
- Qualification Process. The process for determining your qualification for a jumbo mortgage should be largely familiar to you if you know how that process works for conforming mortgages. The two are not so different. We will look at your credit score, income and employment history, debt-to-income ratio, and assets. You will have to get two appraisals.
- Time to Close. A common question we hear is, “Will it take longer to close a jumbo loan than a conforming loan?” The answer to that question really depends on individual factors, but all things being equal, generally the answer is “no.” Closing a jumbo loan should take the same approximate amount of time as closing a conforming loan. The qualification process for jumbo loans may be more strict than it is for conforming loans, but it is not inherently more complicated.
- Down Payment. The typical minimum down payment requirement for a jumbo mortgage is 10%. Sometimes the down payment requirement could be higher. It depends on the qualifications of the individual borrower. During your consultation, we can help you determine how much you may need to set aside to meet your down payment requirement. We also can give you recommendations for how to cover your down payment.
Learn More About Jumbo Loans in Virginia with First Residential
Now that you know more about how jumbo loans work, you may be ready to take the next steps toward homeownership. To ask more questions or apply for a jumbo loan in Blacksburg or anywhere in Virginia, please call (540) 838-5868. We look forward to making it easy for you to close fast and move into your dream home!