For many that are just beginning to look into a home for the first time, there is a whole new world of terminology, principles, and rules to learn in order to successfully navigate the waters of homeownership. For those new to homes, loans and mortgages, learning the basics of jumbo loans and requirements and why they might be the right choice for you.
- Down payment of 20% or greater
- Debt-to-Income ratio around 40% or less
- Property appraisal, possibly two appraisals
- Closing costs, typically well over $10,000
- Consistent income that you can document with tax records and bank statements
- Credit score of around 700 or even greater
If you meet the previous qualifications, you could be a great candidate for a jumbo loan. The higher loan amounts require higher standards for recipients than a normal loan, so it is important to see if you meet the minimum requirements before proceeding. If you do not currently meet these requirements, you can begin to work towards them to ensure your future qualification for a jumbo loan.