Frequently Asked Questions Regarding Jumbo
and Super Jumbo Loans
Are lenders making Jumbo Mortgages available now? Yes
Are jumbo rates competitive compared to conforming rates? Yes
Why am I quoted for a 1st and 2nd mortgage when I inquire about a Jumbo Loan?
Most lenders have limits on how much they are comfortable lending on a 1st mortgage; thus you are forced to take out an additional 2nd mortgage.
How long does it take to be approved for a Jumbo Loan? Approvals take 2-3 days depending upon the lender. Additional time is needed for the appraisal as well as verifying all of the information submitted to the lender. The more complete the package, the sooner the loan can close. From the date of initial contact to the date of closing is approximately 30 days.
I am not comfortable with releasing my financial documents to strangers. How do I know my financial information will be secure and kept private? We are also very concerned about your privacy. Once the documents are transmitted to the lender, all original documentation is sent back to you and/or destroyed in burn boxes. All information is scanned and stored on our encrypted servers that are firewall and password protected. We depend on keeping the financial affairs of our client private, our reputation is based on their privacy.
I do not want my financial affairs discussed with others. How will Homestar insure my privacy? Like your personal banker, we do not discuss you and/or your finances with anyone but the lender that makes your loan. Our loan officers realize both the legal and moral consequences of discussing financial details with unauthorized personnel. We take every precaution to make sure all files are kept in locked file cabinets and are only accessible to the loan officer and his processor.
How can I be sure I am obtaining the best deal possible? You cannot be sure unless you have it reviewed by your accountant and he is made aware of your short term and long term goals. If you discuss your personal situation with your loan officer and explain exactly what you are looking for, he should be able to devise a plan that accomplishes your short and long term goals. At the same time, your loan officer should discuss the cost of doing business with his company and what the loan will cost you.
How much latitude is available on Jumbo Rates? There are certain variables that can generate a higher or lower interest rate. Increasing or lowering the principal amount of the loan is one example of this. Discuss other variables with your loan officer.
What should I do if I’m not happy about a particular situation? Ask to speak to the owner of the company and/or ask the loan officer for a written detailed explanation. If the situation continues, move on to another company. There are plenty of companies that want your business.
How much will the loan cost me? Within three days of taking your application, all lenders and brokers are required to give you a detailed estimate (GFE - Good Faith Estimate) of all costs associated with your loan. If you do not receive it within three days, ask for it. If you still don’t receive it, move on to another company! Costs vary and no two companies will be the same. However, just because a company’s costs seem lower up front, does not mean that you are receiving the best deal. There are other factors that need to be considered. Ask questions!
How do I know you are a legitimate company? Homestar Financial, LLC is individually licensed by the following states; Ohio, Kentucky, Indiana, Virginia, and Florida. In addition, we are approved by the Department of Housing and Urban Development. We undergo a full blown financial audit each year including a review of all procedures and closed loan files performed by an Ohio auditing firm subject to standards set by the Federal Government.
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