Jumbo loans are unlike the conventional home loans where automated terms are presented to borrowers. Under a jumbo loan, lenders give more concessions to favored clients while still ensuring compliance with fair lending standards.
Jumbo lenders may likely offer interest rate discounts for borrowers or even adjust closing costs or escrows to favor the borrower. According to a real estate expert, a jumbo loan carefully takes into consideration the individual applying for the home loan, unlike the typical lender that offers the same mortgage terms to all clients.
Some tips for borrowers who want to avail of a jumbo loan:
- Borrowers get more negotiating power if they have a good credit history and the right resources. Lenders check a potential client’s overall debt and income before coming out with a good offer. It would be wise for a borrower to ensure that his debt is manageable with a good credit report.
- Mortgage terms and conditions also get more favorable to a borrower who has a lengthy and valuable relationship with a bank or is considering moving his account to the bank of choice. This also gives the borrower more leverage to get a good bargain off his mortgage if a bank sees that it may land more business with the new client in the future.
- Borrowers should also shop around and compare offers from various jumbo lenders. A buyer should also always negotiate the terms of a mortgage to ensure that they are getting the most deal out of the loan.
Collections: Mortgage News