Участник:GeniaLowrey332
Jumbo Refinance Mortgage Loans Could be Approved If you are Prepared
You're considering a jumbo loan for a home refinance while rates are low but you've been told, "Do not to waste your time applying. Not now, because the banks aren't lending!" Most banks aren't too keen on approving jumbo loans. The jumbo loans are considered a higher risk loan, especially in a stagnant economy. Some banks may offer jumbo loans but their underwriting process is so strict that getting the jumbo loan to the closing table doesn't seem possible. There are a few banks that handle jumbo loan efficiently and can hold these financing options within their portfolio. Finding this kind of bank could be the initial step inside your quest to have your jumbo loan refinanced. The best bank may have the widest variety of terms and also have the most flexible underwriting guidelines. There are more points that needs to be considered in choosing the right bank.
Regardless of the inherent risks posed by higher loans, the basics of home loan underwriting still apply. Like home loans with amounts below $417,000, the 5 Cs of lending remain intact, (capacity, credit, capital, collateral, character.) So what's different with jumbo loan underwriting?
A residential jumbo loan is any mortgage loan where the loan size exceeds GSE's (Government Sponsored Enterprise such as Fannie Mae and Freddie Mac) limits. Currently, the GSE's loan limits are capped at $417,000.00 or $625,500 in Alaska or Hawaii. Any home loan exceeding these limits is recognized as a jumbo loan. This really is obviously the first obvious difference between a standard mortgage and the jumbo loan. With higher loans comes a lesser LTV (loan to value) Expect to have at least a 20% equity position on a rate/term refinance.
The loan terms will be different between various lenders and it is always prudent to consider a lender that has a variety of options that can be tailored for your specific needs, whether you need a 30 year fixed interest rate, a 15 year fixed rate or perhaps a 5/1, 7/1 or 10/1 hybrid ARM or interest only. The eye rates on these higher loan amounts are not as high as some borrowers think they would be. They often really are a little bit greater than conventional mortgage rates and perhaps they might be lower than some conventional loans after their rate adjustments.
Many borrowers have unique situations and the bank that you should use is a that has a clear understanding of the uniqueness of the higher loan borrower. For example, although a lot of borrowers possess a standard salary and W2 income, there are a disproportionate number when compared to lower amount borrowed applicants which have a W2 income which include bonuses or commissions. Using the higher loan values, there's also a bigger number of self-employed borrowers and professionals. Different calculations ought to be used for this kind of borrower to allow for depreciation, depletion, bonuses and commissions. For any borrower's best shot at loan approval and efficiency, the larger loan amounts require a bank that has a staff of underwriters and originators who have a greater skill set and proper training for this type of loan origination and underwriting.
To become approved for any jumbo loan, you have to bring along support documentation. Income documentation, documentation of reserves, letters of explanation, tax documents, etc. In short, you'll need 2 yrs tax returns with all schedules, one month's most recent pay stubs, 8 weeks most recent bank statements, schedule of real estate owned, newest statements of stocks, bonds 401k and IRA accounts. A professional loan originator who is familiar with this kind of loan will give you insight on what documents you'll need for the application.
