Jumbo Loans and Financing: 6 important steps to apply for jumbo loan in Tampa
Jumbo loan rates have recently become very competitive with regular loans. Some banks are now offering lower rates and financing costs, and million-dollar homes in Tampa are becoming a relative bargain. Deals on jumbo loans will likely cause an increase in sales in Tampa’s luxury home market, which has been the slowest performing market since the real estate crash. I suspect many homeowners will take advantage of listing their homes for sale with an increase of luxury home buyers.
If you are planning on purchasing a luxury home or condo in the Tampa Bay area, then you should do a little research.
What is the Jumbo Mortgage Amount?
Make sure you know which homes qualify for a jumbo mortgage as per the loan limit of your county. The current 30 year Jumbo loan size for residential homes is currently any loan above $417,000 in Hillsborough and Pinellas Counties. This includes all of Tampa, St. Petersburg and Clearwater.
6 Steps to obtain jumbo mortgage in Tampa
1. What is the required down-payment for Jumbo Mortgages? – Before you may take out jumbo mortgage, you will have to calculate the amount you’ll require for buying house. You will have to make the necessary down payment on the purchase price of your house, but expect to put down 10% to 20% of the purchase price. For example, if you’re paying $50,000 down payment on a single-family home which costs $500,000, then you’ll have to take out a loan for $450,000, which is considered a jumbo loan per the current guidelines.
2. Evaluate the property you possess or want to buy – The rules for jumbo mortgage will be different based on the kind of property you’re planning to buy. For example, for residential properties the cut off from conventional to jumbo is $417,000, but if your property is of four-unit then jumbo loans start at $801,950, and duplexes are $533,850
3. Ask for a copy of your credit report – You should make it a point to get a copy of the credit report from each of the three bureaus – Experian, Transunion and Equifax. The credit score that is above 720 are believed to be excellent while the score below 600 are definitely poor. Your lender will ask you to provide your credit report before he or she agrees to offer you any loan.
4. Make a comparison between different jumbo loans – You need to make a comparison between different jumbo mortgages before you may take out one. Jumbo lenders and super jumbo lenders will have their own set of underwriting requirements and unique “overlays.” Overlays are the nuances of what jumbo loan lenders will accept or reject. You can be sure these differ from jumbo lender to super jumbo lender.
5. Shop around for different mortgage lenders – You will have to shop around for the different lenders to take out jumbo mortgage in Tampa. Usually, the mortgage brokers work with the lenders who can provide competitive jumbo mortgages. If you are facing some credit related issues, then you may get in touch with the financial companies.
6. Submit application for three jumbo mortgages – Once you have a contract to purchase on a home, you can submit up to three jumbo mortgage loan applications. You will have to provide your income and tax documents to the brokers and the loan officers. This will enable them to prepare the correct pre-approved loan offers.
This article has been contributed by Sam Stokdale, a financial writer specializing in mortgage. Immersing himself with the financial sector, he has covered topics including real estate investment, lending and borrowing, managing finances and credit advice.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net