Your experience getting a jumbo loan approved will be different from getting a different loan type approved — and you might like the jumbo approval experience even more!
Jumbo loans are “jumbo” because they’re too big for government backing; their size exceeds the federal mortgage loan limit established for the region.
In most parts of the country, the loan limit that separates jumbo from non-jumbo loans is $484,350; and, it scales to $679,650 in “more expensive places”, such as Los Angeles, San Francisco, and New York.
Because they’re not government-backed, jumbo loans are also not standardized nationally. They’re priced differently from lender-to-lender, and they’re approved differently, too.
Sometimes, you’ll be asked for a lot of paperwork to get a jumbo loan approved. Most times, though, you won’t.
Fun fact: lenders like paperwork even less than you do!
Mortgage lenders will verify your basics as part of a jumbo loan approval, and they’ll request supporting documentation, but that’s about it.
You might be asked to show the following:
- Proof of identification, such as a driver’s license
- Evidence of your ability to repay the loan, through either federal tax returns or a statement of assets
- If you’re making a down payment, evidence that the down payment cash belongs to you and that it’s not a loan
And, if your jumbo loan is a special program (e.g., a 100% Doctor Loan), you’ll be asked to show evidence that you’re a part of the program’s target group.
Overall, jumbo loans are often faster and simpler to get approved than government-backed ones. Interest rates are often lower, too.
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Home buyers returned to new construction in April and found that builders were willing to negotiate.