Deciding on who the best jumbo mortgage lender servicing the San Antonio TX area can be somewhat of a difficult task. When you are looking for a new home, you may already have ideas regarding the features that you would like to have most. If you are hoping for a great deal of square footage, you will need to think about getting the right loan that can measure up to the price tag of your potential dream home. This is where a jumbo loan may come in handy as the answer to your financing problems.
Understanding Jumbo Loans in San Antonio
A jumbo loan is pretty much just what it sounds like. This is a larger loan that a conventional one that specifically meets whatever financial needs that you have when it comes to buying a piece of property that is more expensive.
When looking at exactly what it means to be more expensive, there is a number that is attached to this type of loan. These are loans that start out at $424,100, where in many parts of the United States as a starting cost in order for you to be able qualify for the jumbo home loan. Anything that is less than this amount will fall under the conforming loan category. When it is a high cost area, such as in Los Angeles, the minimum is set at $636,150.
A benefit of getting approved for one is that it will help to make the purchase of a larger home more attainable. Instead of needing to save up until you will have enough money, trying to hunt down a number of loans, or to sacrifice the other accounts that you may have set aside to use for other things, you can finance the total amount of your home.
When you want to buy a home that is very expensive, you may qualify for what is known as a super jumbo mortgage, which will be for properties that are extremely high end.
Requirements For Non-Conforming Loans
If you are a homebuyer that has an income that can take on a substantial mortgage, this type of mortgage will offer you a unique set of advantages. However, they also come with unique requirements. The requirements for getting pre-qualified will be a whole lot more stringent than a traditional loan, simply because there is more risk involved in getting a loan for a property that costs more.
Just as with any loan, your overall income has to be proven to be enough to cover all of your monthly payments. In addition to that, you need a debt to income ratio, or DTI, that is roughly 38% or lower. Each lender is going to have their own maximum for DTI, but the common element will be that they scrutinize the DTI even closer when they determine if you actually qualify..
You should also have a credit score that is fairly solid if you want to be able to qualify for jumbo financing. Many lenders will not be willing to offer this kind of financing for anyone who has a poor credit history. The requirements will differ from one lender to another, but many will not approve the loan if the credit score is lower than 680.
Down Payment Options on Jumbo Loans
For the down payment on a jumbo mortgages, it will be determined by your overall price. Some of the lenders will require that you put at least 5% down on a house that is in the $400k range. If you have a cost that will be over $1M, you should expect that you have to put at least 10% down and then 20% down if it is a property worth several million.
Your lender may also consider liquid assets if you are able to provide documentation. You will have to show you are able to handle the down payment, any closing costs, and the future monthly payments. With other requirements, the lenders may differ in policies that regard reserves. A lender may only call for six months of reserves, while others may require you to have five years. Some of the differences will also depend upon how large the loan will be.
Interest rates for jumbo loans will usually be higher than conforming loans, and with a higher loan comes more risk. Not only will the amount of the loan be higher, but the market is much smaller for any higher priced homes. High priced homes may be difficult to sell moving forward, or they may sell for less due to fluctuations in the value should the market be rocky. Higher interest rates will compensate for any risk involved.
Looking For A Jumbo Mortgage Lender Serving San Antonio
When you are shopping around for a lender, always keep in mind that there are some things to take into consideration. You need to find a lender that will offer rates that work well with your budget. You need to also take time to do your research to ensure you meet up with the requirements of that lender. Instead of wasting the time on getting to the office only to be turned down, you can go online and look up any of the requirements and pertinent information. This will give you a good jumping off point and help you to narrow down your options.
Be sure that the potential lender you work with has a great deal of knowledge and experience when it comes to jumbo lending. If you go with a bank that deals with a huge amount of financial dealings, you need to expect to get much different service than if you would be going with a mortgage lender. A bank will have a loan specialist, but you may not be able to benefit from the education and attention that you need. Smaller companies will often be much more focused on ensuring that you have what you need to be successful with the process instead of you needing to navigate the whole operation on your own.
If you want to move fast, just like most buyers, you need to seek out a company that will excel when it comes to customer service. This will help to make sure that the process goes nice and smooth and that you will be kept in the look when it comes to information that will be beneficial. Not only that, but you will close the deal a lot quicker. Larger purchases can always be stressful, but you need to work with someone that you are comfortable with.
How to Get Started
A jumbo mortgage loan is a great resource for anyone who wants to buy a higher priced home. Just as long as you have all of your details in order, the convenience will open up a much wider range of options for you to make the process as smooth as can be.
Additional Helpful Information
Local communities we service in the San Antonio, TX area:
Adkins, Atascosa, Balcones Heights, Bigfoot, Bulverde, Cibolo, Converse, Elmendorf, Fair Oaks Ranch, Helotes, Kirby, La Coste, Lytle, Macdona, Natalia, Saint Hedwig, San Antonio, Schertz, Somerset, Universal City, Von Ormy
Atascosa County, Bexar County, Comal County, Frio County, Guadalupe County, Medina County
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