Jumbo Loan?
Jumbo loans are ones in which the borrower may or may not have good credit. In either case, they are allowed to take on more debt than normal limits would allow them to be exposed to. This brings in a lot more risk for the lender, in a number of ways. First of all, if the borrower defaults, the amount still owed is likely to be higher than on other loans.Secondly, since the property is likely to be a lot more expensive than average, there is going to be a smaller marketplace interested in buying it. That makes it tougher to sell the property to recoup the losses. A large down payment is usually required.
"Loans are what we do, not who we are."- CEO, Steve Jacobson
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This may vary depending upon the specific type of mortgage you are applying for, as different agencies will need to be involved in the process. Typically the process plays out in a month or less, though some will go quicker. It is not uncommon to have the mortgage application processed within 10 days. It is critical that you get the application entirely completed, so that you can avoid any delays along the way.
The main thing that can delay the approval of a loan is failing to properly and completely fill out the applications. It is also important that you be completely honest on the applications, as any discrepancies may cause delays. In addition, changing jobs, having a change in your salary, changing your marital status or taking on additional debt can delay the approval of a loan.
Closing costs include items such as taxes, title fees and hazard insurance. Sometimes what is included in closing costs varies, and it can be impacted by the negotiation process on the sale price of the home, as the homeowners may or may not cover certain closing costs. You’ll want to have some money set aside to cover your closing costs.
Prepaids are items that you as the homebuyer pay at closing. This is a payment before the actual due date. These may be necessary depending upon the details of the closing. They include taxes, hazard insurance and other various assessments.
After you close, you’ll receive a letter that includes all of the dates and information that you need. If you want further details while you are closing, you should inquire about the specific due date of the first payment.
“Loans are what we do, not who we are.”
– CEO, Steve Jacobson