The Ultimate Guide to Jumbo Loans: Understanding Jumbo Mortgages and Finding an Ohio Mortgage Lender

What are Jumbo Loans?

Jumbo loans, put simply, are large home loans. Any loan amount that exceeds the conforming loan limits that the Federal Housing Finance Agency (FHFA) sets is considered a Jumbo Mortgage.

How Jumbo Loans are Different

Conforming loans must, by definition, have loan amounts that do not exceed the conforming loan limits. Jumbo mortgages don’t have to play by those rules. They allow you to borrower more than the conforming loan limit allows.

Why Choose a Jumbo Loan?

Buying an Expensive Home

If you are buying an expensive home, you may not have any option.

Interest Rates that Compete

Believe it or not, jumbo loans often have competitive interest rate. Lenders want to snag high value borrowers, so they offer good deals.

More Flexibility

Jumbo loans can have more lenient guidelines in some situations. They may consider different sources of income and understand unique financial situations, making it easier for you to qualify.

What Makes Jumbo Loans Tricky?

Bigger Down Payments

Jumbo loans need bigger down payments, typically at least 20% of the house’s price. T.C. Strait | Mortgage Loan Officer has a couple of options for as little as 5% or 10% down on Jumbo Loans in Ohio.

Tougher Qualification Standards

While they are flexible in some ways, jubmo lenders have high standards. You’ll need a good credit score, low debts and good income to meet their standards.

More Paperwork

Jumbo loans usually require more documents – tax returns, bank statements, and more.

Tips for Finding an Ohio Mortgage for Jumbo Loans

Check the Rates and Terms

Interest rates and terms can be all over the place. Make sure your loan officer is able to get quotes from multiple lenders. Working for an Ohio Mortgage Broker, T.C. Strait | Mortgage Loan Officer has a variety of lenders that I can get quotes from.

Experience Matters

Pick an Ohio Mortgage Lender, like Lynx Financial Group, LLC that has experience dealing with jumbo loans. We know what we are doinog, making the process smoother for you.

Know the Costs

Jumbo loans can come with extra costs. Understand all the fees and closing sosts so there are no surprises. Your mortgage loan officer should be happy to go over each and every cost.

Get Pre-Approved

Before you start hunting for a house, get pre-approved. It shows sellers you mean business and it helps you know your budget.

Is a Jumbo Loan Right for You?

Check Your Finances

Make sure your finances are in order. Good credit, stable income, and low debts are a recipe for success.

Talk to the Pros

If you aren’t sure, ask the experts. Talk to mortgage processionals who can give you personalized advise.

Conclusion

Jumbo loans are for those larger than average home purchases. They do have their challenges though. Remember, work with a lender or better yet a Mortgage Broker who has access to a lot of lenders. Lastly, make sure you understand the costs. Happy house hunting!