Luxury Main Line PA Home Financing with Realtor Kimmy Rolph helps you if you are ready to shop for a luxury home. Determining your financing needs to be your first step!
Oh, I know shopping is more fun, but did you know that many luxury home sellers require you to be “pre-approved” or show proof of funds before even entering their home?
I’ve been involved in many luxury home transactions and have seen luxury buyers who know they are qualified get denied entry by the seller’s agent because they do not have this documentation ready. So, just like other price-points, it is important to have financing in place, even if it might take a while to find that perfect dream home.
Many luxury buyers are ready to go, with cash. So a letter from your financial representative stating that your have adequate funds to make a purchase at the desired price, or a bank statement with private information blacked out, is good to have on hand.
If financing is needed, a jumbo loan is likely going to be required. This is a loan for those that need to borrow in excess of the current conforming amount in the area, which in the Main Line area, is $548,250 for 2021. Now that is the loan amount, not the purchase price. If you have enough cash down payment to keep your loan at or below this amount, the qualification process will be a bit simpler and your interest rate is likely to be more favorable.
If you need to borrow above the conforming limit, a jumbo loan will enable you to purchase that dream home. A minimum down payment of 20% may be required as well as a higher credit score, typically above 700, a lower debt-to-income ratio, and some minimum post-closing liquid cash reserves and overall more documentation and scrutiny.
An alternative to the jumbo loan, in some cases, may be a conforming loan with a second mortgage, usually in the form of a home equity line of credit.
And a caution to retired buyers with substantial assets, but who plan to obtain a loan for their new luxury home…if you don’t have an income, the pre-approval process can take some extra time so remember to plan ahead.
For more information about Luxury Main Line PA Home Financing , or to be connected with a lender to help you get pre-approved and figure out which option is best for you, please reach out to me! Kimmy Rolph Sells Luxury on The Main Line and Local Areas.
