Mortgage Update: You can now get pre-approved for a jumbo loan
The housing market is still very competitive, and one of the most powerful tools for buyers to stand out is a pre-approval. But up until recently, pre-approvals were often not available for jumbo loans, mortgages that are needed to purchase properties over a certain amount of money, above $548,000 in most of the United States.
That’s all changed. Guaranteed Rate is now offering jumbo loan pre-approvals through Red Arrow Approval Express. This is much more than a pre-qualification, and offers a full underwrite of the borrower’s credit, income and asset and gives a loan commitment to you. This is as close to a cash offer you could make on a jumbo purchase.
Stand out in a competitive market
Because of how complicated and time-intensive jumbo loans can be, most homebuyers who need a jumbo loan will have to secure financing once they’ve put an offer on the home. In a multi-bid situation, if you have a pre-approval in hand, a seller may be more inclined to accept your offer because they know that you’re already approved for financing. That’s a big competitive advantage.
Jumbo mortgages are considered non-conforming loans, due to the high price associated with the home being purchased. These types of loans are ineligible for purchase by the government sponsored agencies, Freddie Mac and Fannie Mae, so they must be sold to other investors. Because of this, lenders have higher standards to approve these loans.
Guaranteed Rate is now making it easier to buy a larger property with a larger mortgage. To find out more about getting pre-approved for a jumbo loan, contact a Loan Officer today. Or get started by applying online right now.
Red Arrow Express Approval (the “Approval”) is contingent upon receipt of executed sales contract, an acceptable appraisal supporting value, valid hazard insurance policy, and a re-review of your financial condition. Guaranteed Rate, Inc. reserves the right to revoke this Approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation and/or if any information contained your application is untrue, incomplete or inaccurate. Receipt of an application does not represent an approval for financing or interest rate guarantee. Not all applicants will be approved for financing. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.
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