Whether you're buying a luxury home, financing an investment property, or building your dream home from the ground up, navigating the mortgage process for a jumbo loan is extremely overwhelming. 

And when you're self-employed, it gets even more complicated. So who should you turn to for help: your lender or a mortgage broker?

While both are able to assist you, one is better equipped to handle the unique challenges entrepreneurs face.

Is It Better for Self-Employed Individuals to Work With a Mortgage Broker or Lender for Jumbo Loans?

If you are looking to secure a jumbo loan, you might be tempted to go with the local bank with which you have an established relationship. After all, your good rapport with them could, in turn, help you negotiate better terms and rates.

And while that may be true in some cases, more often than not, you're better off seeking out a mortgage broker. Here's why:

Access to Loan Products

It is common practice to compare products and services and seek out the best deal before making a purchase, so why should your loan be any different?

50 options are better than 10, right?

Well, that's precisely the difference between mortgage brokers and lenders. See, lenders are bound to their own institution's products and programs, leaving limited options for you.

And when you add self-employment into the mix, you might find your lender even more hesitant to offer you a loan, causing you to start from scratch with another lender. 

Mortgage brokers, on the other hand, can tap into a diverse range of lending institutions to find the best product for your jumbo loan. It's like hiring a personal assistant to do all the heavy lifting for you. 

They know the ins and outs of the industry and the bests programs available for self-employed individuals, meaning you're guaranteed to get a more personalized loan solution to fit your unique financial situation.

Specialized Knowledge and Experience

While your local lender might have the loan product you need, more often than not, it's not what they specialize in. This means they might not have the experience you need to get the best deal or product—especially for entrepreneurs. 

It's similar to how a grocery store stocks its products. Overall, they supply a vast range of items to choose from, giving the general population more than enough options. 

But for individuals with dietary restrictions, such as lactose intolerance, well, their selection is minimal. That's because they only represent a tiny subset of the grocery store's population—just like your local lender.

Those individuals often go to specialty stores to get the products they need. And let's face it; jumbo loans are a specialty loan product—they need someone with experience in dealing with these types of loans. 

Mortgage brokers are well-versed in the different elements that come into play with larger loan amounts, and they know how to navigate the vast network of lenders and underwriting guidelines—it's what they specialize in.

Negotiate Better Rates and Terms

Look, it's quite possible that you could acquire competitive rates and terms with your local lender if they offer jumbo loans. But entrepreneurs will always have to meet higher standards than salaried (W2) individuals. 

And if you don't have a strong credit history, working rapport with the lender, and the ability to meet their extra qualification requirements, negotiations will be tough.

On the other hand, when you work with a mortgage broker, you get to take advantage of their experience and relationships with other lenders and use that to your benefit. 

Brokers know what lenders like to see on applications and will help guide you through your paperwork, letting you put your best foot forward. 

Plus, they use their established relationships with other lenders to secure competitive rates and terms for your loan. Essentially, it's like having a friend vouch for you.

Armed with the perfect application and a lender's reassurance that you are trustworthy, getting excellent rates and terms is easily achievable, like a 5% down jumbo loan.

Experience Effortless Jumbo Loan Financing with Modern Day Lending

With over two decades of experience in the mortgage industry, we know that self-employed individuals often encounter unnecessary red tape when it comes to securing financing—no matter what type of mortgage they want.

That's why we gained access to as many programs and outlets as possible, giving us everything we need to streamline the loan process and get you the best deal possible.

You just need to tell us what you want to accomplish with your jumbo loan.

• Do you want to get into the home with as little money out of pocket as possible? 
• Do you want to put down 20% or 30%? 
• Are you looking to buy an investment property? 
• Are you looking to buy a primary or secondary home?

From there, our team of experts will provide you with tailored solutions and recommendations to get the most out of your investment, like potentially opting for cost segregation with the property. 

The best part? We're licensed in all 50 states, allowing us to facilitate financing solutions for the self-employed, no matter where you're located.

Reach out to one of our mortgage professionals and get the ball rolling on your jumbo loan.

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