How To Purchase a Home Using Jumbo Loans and Skip Tracing?

Living and continuing your work within your home is the best feeling ever. The US Government has introduced some outstanding loan packages for individuals having no homes but is interested in buying one. Multiple loans are awarded to people having an average income, and Jumbo Loan is one of them. This loan is used to purchase expensive homes because the financing amount is higher.

Jumbo Loans have higher financed amounts than FHA and Conventional Loans. This program is only designed for people who want to purchase big homes but need more financing through FHA and Conventional Loans. Jumbo Loans financing amount is higher than your expectation. The exact number depends on the lender, but the numbers are surprising.

That was a little overview of Jumbo Loans, but Skip Tracing is still a mystery that must be revealed. How can we purchase a home using Jumbo Loans and Skip Tracing when these things are different? Skip Tracing is the process of finding someone’s contact information, and Jumbo Loans are used to earn financing through lenders and return that financing in 15 or 30 years. This seems strange, but we can find a fantastic home when we combine them. This article is all about that. We’ll mention finding the best homes using Skip Tracing and purchasing it using Jumbo Loans. So let’s start this article without further ado.

How To Find a Home Using Skip Tracing?

Skip Tracing is the process of finding someone’s contact information. You don’t have to visit someone’s address to see whether the homeowner currently lives there, but you hire Skip Tracers to visit the area and manually pay some money in return. That term is helpful in Real Estate because investors are looking for homeowners having distressed properties. When investors succeed in finding the best vacant or distressed properties, they contact the homeowner to purchase that property at a lower price.

That’s how this Skip Tracing is performed, but finding and working with a firm that provides quality leads is also the mystery. Don’t worry because we’ll suggest a firm that provides quality leads. You can find qualifying properties with ease through the firm we’d recommend. Finding a qualifying property yourself is difficult because you need to know the limit of that particular area. Some areas have higher limits, and others have lower ones. So house selection while knowing the limit is only possible with a Real Estate agent.

And Real Estate agents will not come for free. You’ll have to pay some money, but we recommend paying that same money to the Skip Tracer and finding the qualifying property by sitting in your home. We hope you can work with the Best Skip Tracing Services Provider, Lert Skip Tracing. This company will help you find the qualifying property. You will never be misguided by anyone, and your time will also be saved through Skip Tracing because finding the property becomes easier. That’s the best way to find a qualifying property, but will you qualify for Jumbo Loan?

How To Qualify For Jumbo Loans?

The 2nd work you must complete is to get qualified for Jumbo Loan when you find the qualifying property. Qualifying for this loan is ultimately hard because the financing is higher, and lenders apply hard terms before approval. You can get approval for every other loan if you can complete the requirements of Jumbo Loans because this loan doesn’t come through a comfort zone.
You’ll have to work ultimately harder to achieve the requirements. We’ll mention the requirements to help you understand the standard requirements. The lenders give the exact numbers because every firm has to work under their applied terms and conditions. We can’t give an exact number, but we can prepare you for the upcoming numbers you must keep in mind. You’ll have to complete the targets in these areas to get approval from a lender:

  1. Appraisals
  2. DTI Scores
  3. Credit Scores
  4. Cash Reserves
  5. Down Payments

These are the 5 things you must complete before expecting any approval. Again, your lender will give you the exact number. The number is decided after you reveal your required financing. Suppose I have seen any home whose price is $1.5 Million, then my lender will ask for the terms accordingly, but the lender will ask you to complete different numbers when you inform him about lower financing.
Your financing will switch the lights in the lender’s brain. He will give the required numbers once he learns about your demand. We’ll mention these 5 things, but we won’t give exact numbers. You can get these numbers from lenders.


The first thing is the property appraisal. This thing only happens in Jumbo Loans. Your lender will not send a property appraiser on other loans because he believes in your numbers, but this case only happens in Jumbo Loans. Your lender will cross-verify the property’s value from a property appraiser. People who underestimate the power of single digits must never do this when applying for Jumbo Loans because this little laziness can cause rejection. You should input the exact number you received from your property appraiser because lenders will recheck this through their end.

DTI Scores

DTI Scores play a vital role in getting your loan approved because the monthly decided amount is known when a lender examines your monthly income and expenses. 45% is the red line in Jumbo Loans, but lenders applying hard terms will not let you cross the 40% mark. You should keep your DTI Score at 37-41% when applying for a Jumbo Loan. You’ll face rejections otherwise. We’ve also got a solution for this.
You might not know about the DTI Scores if you have never been into this loan borrowing system. DTI Scores are calculated by inputting your monthly income and expenses. You need a Real Estate calculator to help you improve your DTI Score if your number exceeds 45.

Credit Scores

The 3rd thing is credit scores. And this one is peered after seeing your credit history. Earning the required number will be harder because you will never see this demand. Lenders give the minimum number of 720 when you apply for Jumbo Loans. Strict lenders might also ask for 780, but 720 is the minimum number you must keep in mind.

Cash Reserves

Cash Reserves are also decided after knowing your property’s value. It depends on your demanded financing, but we can give a small idea about this figure. Soft lenders will ask you to show 10-12 months of cash reserves on normal financing, but lenders can also ask for 12-18 months of cash reserves on higher financing. Some lenders might only ask for cash reserves when you have earned enough scores in other areas.

Down Payments

The down payment is the last thing in Jumbo Loans. FHA Loans are approved on 3.5-10%, but this case doesn’t happen in Jumbo Loans. Conventional Loans are also approved at 5%, but the demand for Jumbo Loans is slightly higher than these 2 loans. Although Conventional Loans aren’t government-backed, the lenders still approve 5% down. In Jumbo Loans, you can expect approval only when you are willing to pay at least 10-15% down. Some lenders will demand 20%, but 10-15% is the number that you must keep in mind.

These are the 5 things you must complete before expecting financing from lenders through Jumbo Loans. Finding the qualifying property is the first thing, but getting approval is more challenging when you underestimate the cost of the required numbers.

Final Words

And that’s how our article comes to an end. We’ve mentioned the process of finding a qualifying property through Skip Tracing. We’ve also mentioned the requirements you must complete before applying for Jumbo Loans. Sometimes the requirements might be equal to the lender’s demand, but you must be prepared for anything before going to any lender. So that’s all for now. I’ll see you in the upcoming article.