While jumbo loans are different than conforming loans, there are some similarities to keep in mind. Lenders are going to offer the lowest jumbo mortgage rates to the most qualified applicants, which is similar to conforming loans and conventional lenders.
To help to get offers on the lowest jumbo mortgage rates, it is important for home buyers of these more costly properties to start working on positioning themselves well before the application. This allows the home buyer to address the issues the lender will be looking at and making necessary positive changes.
Limit Large Purchases
Ideally, for a jumbo loan, lenders are looking for a very low debt to income ratio. In other words, they want to see that the money being brought in is not immediately going out to pay for vehicles, large ticket purchases, luxury vacations, credit card bills and similar expenses.
Limiting large purchases and decreasing debt will be critical to qualify for lower interest rates on these types of mortgages. This also applies to the time of the application and before approval. Don’t make major purchases for the new house until the mortgage has been approved.
Boost Your Down Payment
Traditionally, most lenders have required a 20% down payment on jumbo loans. However, there are some lenders that will approve the loan with just over 10% down payment.
To reduce lowest jumbo mortgage rates, look to increase the down payment significantly. Even with the lenders accepting 10% down, try to use the 20% marker a minimum amount.
Document Your Financials
With any type of jumbo loan, expect to have a thorough review of your finances. This will include your tax returns, bank statements, and records of all investment types of accounts. Having this information readily available at the time of application will help to speed up the process and lock in the low quoted rate.
To discuss how to get the lowest jumbo mortgage rates, talk to the experts at Guaranteed Rate. To get in touch, submit your information conveniently online at www.guaranteedrate.com.
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