Jumbo Mortgage Requirements for Consumers (Video)
By: Rosemary Rugnetta | October 22nd, 2012
As home prices begin to increase, many consumers may find it necessary to secure a jumbo mortgage for financing. While some guidelines may be similar to conforming mortgages, knowing the jumbo mortgage requirements for consumers will help understand what is necessary to secure the low jumbo mortgage rates.
Jumbo mortgages, which are required for financing above the conforming and FHA loan limits, tend to have stricter guidelines since they are currently held by lenders. Since lenders want to reduce their risk and exposure as much as possible, the standards set for jumbo mortgages are higher and often require substantial information in order to make certain that potential borrowers are qualified to receive the financing, as well as, pay back the loan.
Borrowers who are well qualified are usually able to meet the guidelines that are necessary for approval of a jumbo mortgage. By knowing these requirements as early as possible, these borrowers are better equipped to obtain low jumbo mortgage rates along with different terms that are available, as well as, be in a better position to negotiate the most advantageous deal.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at about a 1 point origination fee.
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