Any home carrying a price tag of $1 million or more generally falls into the ‘luxury property’ category. To finance it, a luxury loan is called for. Since financing luxury homes in New York can be more challenging than financing run-of-the-mill properties, many prospective home owners at the luxury level seek the services of a specialist lender. MarketWatch has found that the average price of luxury properties in some major US cities is well over the million dollar threshold – making care in preparing jumbo loan applications more important than ever.
Whether or not you choose to ask your REALTOR® to help you find a mortgage broker well-versed at your price point, the same guiding principles need to be followed:
As with any credit application, you need to ensure that yours is squeaky clean. Don’t short-change any detail (even those that seem unimportant or redundant). Prepare in advance by checking your credit record with all three major bureaus to ensure there are no damaging inaccuracies. Curing them can take time, so starting early pays off.
The larger your deposit, the greater the odds of approval when financing luxury homes in New York. It stands to reason. The more you can contribute above the standard deposit rate, the clearer your message: this loan will constitute less risk.
Shop Around for Good Rates
The constrained market for jumbo loan resale is one of the reasons rates are somewhat higher than those more commonly available, so keeping a shopper’s mentality is a good idea. When financing luxury Brooklyn homes, keeping the rate as low as possible is only prudent. Aim to obtain good faith estimates from a few lenders to find see who is currently offering the best deal.
With luxury home prices on the rise in many areas, if you’re considering buying or selling one this season, it’s worth remembering that financing luxury homes can be the most challenging part of the process. I furnish top-notch referrals when needed. I’m here not only to help you find the home of your dreams - but also to help make it yours.