A Little Mortgage Q&A

Is it still possible to get a Jumbo mortgage? Are the rates much higher than conventional mortgages?

Yes, Jumbo mortgages are still available. The rates on real jumbo loans are a fair amount higher than conventional mortgages but you need to check on the specific details depending on the loan amount. However, there is some good news on this front! There is a fairly new category for loans of a certain size once over the conforming loan limit of $417,000. It is called Agency Jumbo or expanded conforming and the loan sizes that fit into this category differ based on the county you reside in. If your loan amount fits into the Agency Jumbo category your rates will be significantly better than Jumbo rates. Check with our mortgage professionals for more information.

Should I contact a mortgage professional before I start my house hunting or after I’ve found something I want to buy?

The first thing a new home buyer should do is contact a mortgage professional. The mortgage professional can go over the borrowers information and give them a pre-qualification or at a minimum have a frank discussion about what they can afford to purchase and what to expect in the home buying transaction. The mortgage professional can also run the borrower’s credit report which is an absolute necessity when you apply for a mortgage once a house is found.

I’m interested in buying some income producing property. Is a mortgage professional where I should start the process?

Regardless of whether you are going to purchase a primary home, a second home, or in this case an investment property, for the same reasons stated above, a mortgage professional should be consulted early in the stages of your plan to buy. They will help set realistic expectations on what you can afford and what can be included as income from this new home.