Buying the best house is at the forefront of most buyers' minds when looking for a home. Before heading out on the hunt with your real estate agent, you should first get qualified for a house. If you have been saving, increasing your income, and you want a large property, there are some extra steps that you will need to take. These include securing a good downpayment amount, ensuring good credit, and applying for a loan. For properties that are over a certain dollar amount and heading into the million-dollar territory, the loan will typically be called a jumbo loan. If you are not sure a jumbo loan is right for you, here are the three boxes that you should be able to check in order to say yes to a jumbo loan.
Is your income stable and secure?
When it comes to financing an expensive property, the banks want to make sure that you will be able to pay the bill over the course of time. A good credit report with a 100% good credit history will make it easier to you to convince a lender that you are a good bet. Along with the credit report, you will need to show that you have the monthly income to cover the major loan. Bring proof of your income from overtime in order to show your mortgage lender that you have the income, savings, or investment to pay on a jumbo loan without it causing your finances to be too tight.
Are you ready to stay long-term?
Some people look to purchase a starter home and then move on to a larger space as they grow their family or career. When it comes to a jumbo mortgage loan, it is best that you are interested in securing the property long-term. Home markets can fluctuate and if you are looking to sell the property in a short number of years, the market could be on a downturn for the duration of that time. This means that you will be looking to get out of a large loan when it is difficult to do so. Be sure that the property that you are applying for a jumbo loan on is one that you are willing to keep for the long haul.
Is the place/space worth it?
There is nothing worse than buying a home and finding out that there are issues with the house or property. Issues with the structure of the house could cause your home to decrease in value, which spells trouble for both you and your lender. Have multiple inspections performed of the land and the property to have multiple experts sign off that the property is in tip-top shape. Once you can check off this last box being a yes, a jumbo loan just may be right for you.
Contact a local loan service to learn more about jumbo loans.