One of the mortgage options that you can consider is jumbo home loans, Orange County. These are loans that are larger than the conforming loan limits prescribed by government-sponsored mortgage institutions Fannie Mae and Freddie Mac. In 2020, the maximum conforming limit is USD 510,400.
Now, the question becomes: Am I qualified for jumbo mortgage loans, Orange County? The following are some crucial questions you need to ask yourself.
Do I have a good (if not exceptional) credit score?
While every lender has different requirements for jumbo loan application approval, they generally require higher credit scores for a higher loan amount, which includes jumbo loans. Most lenders want to see 700 to 720 at the minimum for jumbo home loans. Therefore, find out whether you have a credit score that is higher than that to increase the chances of approval. Otherwise, work on improving your credit score first before applying.
Do I have money for a higher down payment?
To increase your chances for approval, we recommend that you have at least 20% to put as a down payment. That is the consensus among many lenders. Though some might grant your loan with a 5% to 10% downpayment, your goal is to boost your chances for approval. Thus, better stick to the purpose of having a 20% downpayment ready. After all, you will benefit from it later on during repayment.
Do I have proof of income?
Even if you can establish the fact that you have a work that is providing you a steady source of income, lenders may still want you to provide proof of income to validate your claim. In connection with this, your lender will require you to provide an income tax return or W2S. Also, they will ask you to provide bank statements to check your income qualifications.
Am I qualified based on the low debt-to-income ratio?
Jumbo loan lenders do not want to see a debt-to-income ratio that is higher than 38%. Please note that the loan debt-to-income ratios are more strict with jumbo home loans, Orange County, than conventional loans. The reason for this is that jumbo loans are too big to be insured by the government. Please note further that you can still qualify for jumbo loans, even if you have up to 43% debt-to-income ratio if you have an excellent credit score, and you can give a larger down payment.
Are you interested in jumbo home loans, Orange County? Contact us today at 800-810-PLUS (7587). We are ready to help.