If you are new to the world of loans and home buying/owning, we are here to help you better understand! In this months blog we will be going over what exactly you need to know about a jumbo loan. Continue reading if you’re ready to learn!
A jumbo loan is essentially just what it sounds like. When it comes to buying the home of your dreams, sometime the price is just too high. A simply loan wont cut it and you don’t have enough in your bank account. A jumbo loan is here to help! When the price of your dream home is high, so is a jumbo loan. What makes a jumbo loan so special is that it goes outside of the normal restrictions of what size a loan you can get from the bank. They are classified as non-conforming loans since they don’t follow the typical guidelines. They will differ per area you are looking to buy in, so it’s important to properly research jumbo loans in each area. You wouldn’t want to find your dream home in a spot that has limitations that will restrict your loan.
Another concept you need to keep in mind when considering jumbo loans is that you might see it’s difficult the find someone willing to give you a loan of that size. Jumbo loans, which can be incredibly beneficial in the end, are also extremely risky. As mentioned before, they don’t work within the typical loan guidelines, which make the risk large should you not be able to pay everything off in the end. With all that being said, the specific qualifiers are often hard to hit. After a thorough analysis, it must be provable that you have high income and a great credit score. Those are the two main qualifiers that you need to focus on.
Ultimately, jumbo loans are a great way to get the home of your dreams. If you believe you will qualify and are looking for an expert to walk you through all the necessary steps, be sure to check out American Mortgage Resource, Inc.