Whether you're looking for a jumbo house mortgage or a jumbo mortgage for your business location, these large mortgages offer you the financing you need for more expensive properties.
States have a cap on how much money a mortgage company can loan through a conventional mortgage. Many properties exceed this limit, particularly when it is a large commercial property, such as an apartment building, or when you are looking to buy property in major cities such as San Francisco and New York City. A real estate jumbo loan comes with a higher interest rate, but allows you to take out significantly more money.
If you want to qualify for a real estate jumbo mortgage:
1. Prepare your down payment. Some markets will allow a 5% down payment on a jumbo mortgage, but many states require a 20% down payment. When you're looking at expensive properties, this down payment can be hefty.
2. Get ready to show your credit score and business plan. This will help a jumbo mortgage provider determine whether you are credit-worthy.
3. Prove you can pay. If you can show that you have the cash flow necessary to make your monthly payments, it's easier to get a jumbo loan.
Compare rates on a jumbo mortgage to get the best dealWith a jumbo house loan or commercial mortgage, the interest rate can have a large effect on the total amount that you pay. You should try to get the best rate that you qualify for in order to reduce your costs.
Use a commercial mortgage provider for your jumbo mortgageSome companies specialize in working with companies to help them get a mortgage. They will not give a jumbo home loan, but are the perfect solution for commercial mortgages.
Apply for a jumbo mortgage from your regular bankYou can also go straight to your bank to apply for a jumbo mortgage loan. This is ideal for business owners that have a good relationship with their bank. The bank may be more likely to loan money to someone that they have a history with.
- When applying for a jumbo mortgage, list any questions you may have to ask your loan advisor. It's important for you to understand all fees, requirements and expectations before you make a commitment.