With so many information from different sources made available online, it is not surprising that a number of them are, shall we say, not so accurate. This includes some information about jumbo loan San Diego. Thus, be wise enough to separate facts from myths by digging further into the available information – i.e. make your research more comprehensive before you get into any deals.
What is a jumbo loan? A type of mortgage loan that is designed to finance more expensive homes. It is bigger than “conforming” loans that lenders sell to Fannie Mae and Freedie Mack. Jumbo loan is provided by private lenders – instead of using the maximums imposed by the government-sponsored entities. In simplest words, a jumbo loan makes buying a more expensive home possible.
How to qualify for jumbo loan San Diego? Just like any other home loans, you need to pass certain qualifications or criteria for jumbo loans. Lenders will look into your credit history, the amount of money you are able to put as down payment (they typically require 20%), your income and assets, your debt-to-income ratio, among other pertinent financial information (you may choose to sit down with a highly qualified mortgage broker for your guidance).
What are the items to pay? Of course, you are going to pay for the interest charges. Aside from that, you are also paying for the closing costs or the fees associated with your home purchase such as the appraisal fee. In addition, mortgage insurance is also included in the list (this protects lenders in case a borrower defaults on a loan).
What are some alternatives to jumbo loans? If your jumbo loan application is denied, no worries as there are still a number of alternatives you can try to finance a more expensive home. They are called piggyback loans. In simplest terms, these are a combination of smaller loans such as the 80/20 loan or the 80/10/10 loan.
Interested about jumbo loan San Diego? Be guided by an expert at HomePlus Mortgage.
Call us today at (800) 958-7587.