Finding the best mortgage rate can be a very difficult thing. Even worse, when you intend to find a 30-year jumbo mortgage rate, the stress is going to be higher. If you want to obtain money for buying your dream home, this article may be able to ease your job of finding the best jumbo mortgage rate.
This advice won’t work if you have already found your home to purchase. On the contrary, if you are in the market research phase, you should take a look at the real estate market and jumbo mortgage rates. You’ll notice that they both fluctuate from one year to another. This means that a certain property you can’t afford right now may fir your financial capabilities by next year. Even better, by that time, the jumbo mortgage rates may have dropped as well. This is why you need to do a proper research before making a buying decision, as this is the only way to make sure you’re doing a smart move.
The way you present yourself to potential lenders may influence the jumbo rates they are willing to offer you. If you appear as a confident individual, knowing exactly what you want from your jumbo mortgage, chances are nobody is going o give you sub-standard conditions. Be clear about the amount of money you want to borrow, as well as about the maximum amount you are willing to pay every month. Most probably, this attitude isn’t going to lower your interest rates, but being specific about what you want can help you land a decent offer. If the lender detects you aren’t sure about what you want, you may end up with an offer you can’t actually afford.
The requirements of qualifying for a jumbo mortgage are quite strict, give the higher amount of money you need to borrow. For instance, most lenders are going to require two appraisals instead of one. If you want to get the best rates, you need to establish your eligibility right off the bat. The main factors of influence are the type of property you intend to buy and your credit score. While you may get a jumbo mortgage to purchase your primary residence, you won’t be able to use it to buy a holiday home or a rental apartment. Various lenders have various requirements in regard to the credit scores of their potential clients, but you can be sure that you’re going to need a better credit situation than for regular mortgages.
Most probably, you’re going to need a credit score of at least 700 in order to qualify for a jumbo mortgage. Moreover, your credit score is going to have a direct influence on your rates. Some lenders offer their clients the opportunity of working together on improving their credit score before applying for a jumbo mortgage. Anyway, you should always check your credit report for correctness before everything else. Even a tiny mistake may lead to lowering your credit score, thus affecting your jumbo mortgage rates.
Even though a mortgage implies borrowing money, you need to make sure you can afford it before applying for one. Down payments on jumbo mortgages can be as much as 30% of the total amount you wish to borrow, hence the possibility that you may not afford it. Moreover, you need to check that you can afford the repayments, as they can be quite high when it comes to jumbo mortgages.