Are you in the early stages of buying a higher end home? Perhaps you’re thinking of getting a jumbo home loan to finance a property in Los Angeles, San Diego or San Jose? Or, maybe you already have a jumbo loan and you’re thinking about a refinance. Jumbo loans are more common in such areas as in other major metropolitan cities due to the overall higher median home values.
Jumbo loans have progressed over recent years and today are no more or less difficult to qualify for compared to any other type of mortgage. And even though you did obtain a jumbo loan not too long ago it’s possible you’ve forgotten what type of documentation is required for jumbo mortgages today.
The first thing needed is a completed application. If you don’t have a property picked out and you’re applying to obtain a preapproval you don’t have to list a property address. But do make sure you complete all relevant sections about yourself like address, date of birth, social, employment, assets and income details. There will be some items that may not make much sense at first, such as a legal description of the property for example, but if you do have questions just pick up the phone and ask your loan officer. An incomplete loan application requires the lender to call you back and ask for more information, which adds to the processing time.
If you’re self-employed, you can expect to provide your most recent two years of federal income tax returns, both for you and your business. Lenders like to see consistent, year-to-year income and two years of tax returns will satisfy this requirement. You’ll be asked to provide a year-to-date profit and loss statement as well. You can have your accountant provide one but typically one drawn up by you works just fine. For your down payment and closing costs, you’ll need copies of your most recent bank and investment statements covering 60 days. If you’re not self-employed, you’ll need your most recent paycheck stubs covering a 60 day period and your W2 forms from the previous two years. Finally, provide your lender with the name and contact information for your homeowner’s insurance.
It's important for buyers to remember that nearly all jumbo loan programs today require complete documentation as it relates to income and assets. There are plenty of options available in 2020 up to 95% financing. Applicants can read about all the latest requirements and restrictions on the Jumbo Purchase page.
Veterans should take the time and read the complete VA Jumbo Loan Overview here.
Questions? please call us at Ph: (800) 840-6449
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