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Mortgages are meant to make the homebuying process a little more affordable if you don’t have the money to purchase a home for full price in cash. For 2022, standard mortgage loan amounts typically go as high as $647,200, meaning this is as much as you can borrow to buy a home. However, if you think you’ll need to borrow an even higher amount for a home purchase (especially if you live in a higher cost-of-living area like New York City or Hawaii), you might want to consider jumbo loans.
Jumbo loans are meant for those who need to borrow more than the conforming loan limit of $647,200 for 2022 (the limit can depend on the city you live in, though). And because you’re borrowing more money, there are often stricter qualification requirements, like having a higher credit score or a much lower debt-to-income ratio. You also typically need to be able to make a down payment of at least 10% of the home’s value for a jumbo loan.
Select rounded up a list of some of the best mortgage lenders that offer jumbo loan options. We evaluated lenders based on the types of loans offered, minimum down payment amount, customer support, among other factors (see our methodology below).
Just keep a few things in mind when you’re looking to apply for a mortgage. Firstly, mortgage interest rates can fluctuate quite often, however, the rate you are likely to receive will heavily depend on your location, credit score and credit report. While you can take a look at each lender’s website to get an idea of what interest rates they charge, the best way to get a solid idea of what you will be charged is to provide the necessary information to check your rate.
The mortgage approval and acceptance process comes with many fees, collectively called “lender fees.” These can include an origination fee, processing fee, application fee and an underwriting fee. In addition to lender fees, you may also pay a document preparation fee, an appraisal fee, title search fee, title insurance and more. According to ValuePenguin, lender fees can run you an average of an additional $1,387.
Lastly, it’s important to do your homework so you can be sure you’re choosing the lender that best suits your needs whether you’re a first-time homebuyer or purchasing an investment property. We have included an FAQ section below to help you familiarize yourself with some aspects of the process, but if you have other more …….
Source: https://www.cnbc.com/select/jumbo-loan-the-best-lenders-to-consider/