2018 Conforming Loan Limit:

$453,100 is the new 2018 Conforming loan limit.  As of the day, 12/7/17, lenders now allow us to take an application with the higher loan amount as long as we don’t close before 12/20/17.  Which by the way, should not be an issue.

Old Conforming Loan Limits:

The old Conforming loan limit was $424,100.  However, as home values increase  significantly over the last several years, we saw more and more borrowers applying for a  Jumbo loan.  It was also difficult for many borrowers to obtain a Jumbo loan.  A Jumbo loan was any loan amount that exceeds the conforming loan limit.  Now with the new loan limit increase many borrowers now fall back into the conforming loan amount.  Furthermore, the interest rate is also much more favorable on a Conforming loan versus a Jumbo loan.  The reserve requirements are also less strict on a Conforming loan.

Need To Get Prequalified For A Loan?

Call our office and we will be more than happy to assist.  For a full loan prequalifiation, we have to verify your income, assets, and debt on your credit report.  For income, you will need to send us your W-2’s for the last two years along with recent paystubs for the last 30 days.  We require a current bank statement to verify that you already have your down payment money and closing costs funds.  A credit report will need to be run to show any and all outstanding debt.  We use the credit report to accurately calculate your debt to income ratio.

Not Sure Which Loan Program You Need?

No problem.  During the loan prequalication process, we will walk you through the loan process and talk about your loan options with you.  We will go over down payment requirements, reserve requirements, as well as how long you plan on living in this home.  For example, if you are a first time home buyer and you plan on moving within the next 3 years, it might not be a good ideal to obtain a 30 year fixed rate product?  Why?  Well, because why would you want to pay a higher interest rate to hold the interest rate if you only plan on being in the home a few years.  Wouldn’t it be cheaper to obtain a shorter term loan with a lower interest rate which then translates into a lower monthly mortgage payment?  Don’t worry we will go over all of this during the loan prequal process.