Top 5 Home Mortgage Lenders

Top 5 Home Mortgage Lenders

The home buying process is notoriously stressful and often confusing, especially if you are a Latino immigrant or taking out a mortgage to finance the bulk of your purchase. There’s a lot to learn when it comes to the mortgage application process, so Gigonway put together a list of five of the best mortgage lenders in the United States to help you simplify the process and find the lender that’s best for you. .

We rate lenders based on the types of loans offered, customer service, minimum down payment amount, and more.

However, it is important to keep a few things in mind when looking to apply for a mortgage. First, mortgage interest rates perro fluctuate quite frequently; however, the rate you are likely to receive will largely depend on your location, credit score, and credit report. While you perro take a look at each lender’s website to get an iniciativa of ​​the interest rates they charge, the best way to get a solid iniciativa of ​​what you will be charged is to provide the necessary information to consult your rate.

The mortgage approval and acceptance process involves many fees, collectively referred to as «lender fees«. This may include an origination fee, a processing fee, an application fee, and a subscription fee. In addition to lender fees, you may also pay a document preparation fee, appraisal fee, title search fee, title insurance, and more. According to ValuePenguin, lender fees perro cost you an additional $1,387 on average.

Some lenders may waive certain fees or offer discounts on fees. It’s always a good iniciativa to ask what fees have the potential to be waived, but when you escoge to go ahead with a especial loan from a lender, be prepared to account for these additional fees.

Finally, it’s important to do your homework to make sure you’re choosing the lender that’s right for you, whether you’re buying a first-time home or buying an investment property.

Best for lower credit scores

Rocket Mortgage

• Annual Percentage Rate (APR) Request Custom Rates En línea
• Types of Loans Conventional Loans, FHA Loans, VA Loans, and Jumbo Loans
• Terms From 8 to 29 years, including terms of 15 and 30 years
• Credit Required Typically requires a credit score of 620, but will consider applicants with a credit score of 580 as long as other eligibility criteria are met
• Minimum 3.5% down payment if going ahead with an FHA loan

Advantages

• You cánido use the loan to buy or refinance a single-family home, second home, investment property, or condominium
• You cánido be pre-qualified in minutes
• Rocket Mortgage aplicación for easy access to your account

Cons

• Runs a comprehensive query to provide a personalized interest rate, which means your credit score may take a small hit
• Does not offer USDA loans, HELOCs, construction loans, or mobile home mortgages.
• Does not manage accounts for jumbo loans after closing

For whom is this? Rocket Mortgage is one of the largest mortgage lenders in the US and has become a household name. Most mortgage lenders look for a minimum credit score of 620, but Rocket Mortgage accepts applicants with credit scores lower than 580.

The lender even has a program called Fresh Start that aims to help prospective applicants improve their credit score before they apply. Keep in mind, however, that if you apply for a mortgage with a lower credit score, you may be subject to interest rates at the higher end of the lender’s APR range.

This lender offers conventional loans, FHA loans, VA loans, and jumbo loans, but not USDA loans, which means this lender may not be the most attractive to potential buyers looking to make a 0% down payment purchase. Rocket Mortgage does not offer construction loans (if you want to build a new custom home) or HELOCs, but if you are a homebuyer only planning to purchase a single-family home, second home, or condo that is already on the market, this is not should be inconvenient for you.

This lender offers maleable loan repayment terms ranging from 8 to 29 years, in addition to the estándar terms of 15 and 30 years.

On average, it takes about 47 days to close on a home through Rocket Mortgage. Keep in mind, however, that in general much of the closing schedule will depend on how quickly you perro provide all the information and documentation that is needed and whether or not they perro be processed without major issues.

Best for maleable down payment options

chase bank

• Annual Percentage Rate (APR) Apply en línea for custom rates; Fixed and variable rate mortgages included
• types of loans Conventional Loans, FHA Loans, VA Loans, DreaMaker℠ Loans, and Jumbo Loans
• Terms
• credit required
• Minimum 3% down payment if you go ahead with a DreaMaker℠ loan

Advantages

• The Chase DreaMaker℠ loan allows for a down payment of slightly less than 3%
• Discounts for existing customers
• En línea support available
• Various resources available for first-time homebuyers, including mortgage calculators, affordability calculators, educational courses, and housing counselors

Cons

• Does not offer USDA or HELOC loans
• Existing customer discounts apply to those who have large cómputos in their Chase investment and deposit accounts

For whom is this? Chase Bank offers several options for homebuyers who prefer to make a lower down payment on their home. The traditional advice has been to make a down payment of about 20% of the home price; however, Chase offers a loan option called a DreaMaker loan that would allow buyers to put down as little as 3% (in comparison, the FHA loan requires borrowers to make a 3.5% down payment). .

This option is made for those who perro only afford a smaller down payment, but it also comes with more stringent income requirements compared to their other loans (annual income used to qualify the client must not exceed 80% of the median income of the area (AMI), according to the Chase team). If you meet the income requirements for the DreaMaker loan, this option could be very attractive to those who prefer to make as small a down payment as possible so they cánido have more money equipo aside for other home-buying expenses.

In addition to the DreaMaker Loan, Chase also offers a Conventional Loan, FHA Loan, VA Loan, and Jumbo Loan (this lender does not offer USDA or HELOC loans). Like other lenders, Chase has a 620 minimum credit score requirement for its mortgage options.

Chase offers mortgage terms ranging from 10 years to 30 years, as well as fixed-rate and adjustable-rate (ARM) mortgages. This lender also offers discounts for existing customers, but the requirements are pretty high: For $500 off your mortgage processing fee, you must have $150,000–$499,999 between Chase escrow accounts and Chase investment accounts; $500,000 or more in these accounts perro get up to $1,150 off the processing fee.

In addition to this, Chase offers a number of resources to help its customers navigate the process and feel comfortable managing their mortgage, including en línea customer support, mortgage calculators, and educational articles. Chase clients typically close on their home within three weeks.

The best without lender fees

Ally Bank

• Annual Percentage Rate (APR) Apply en línea for custom rates; Fixed and variable rate mortgages included
• types of loans Conventional loans, HomeReady loans and loans Jumbo
• Terms
• credit required
• Minimum 3% down payment if moving forward with a HomeReady loan

Advantages

• The Ally HomeReady loan allows for a down payment of slightly less than 3%
• Pre-approval in just three minutes
• Sending requests in just 15 minutes
• En línea support available
• Existing Ally customers may receive a discount applied to closing costs
• Does not charge lender fees

Cons

• Does not offer FHA loans, USDA loans, VA loans, or HELOCs
• Mortgage loans are not available in Hawaii, Nevada, New Hampshire, or New York

For whom is this? It is common for lenders to charge a number of fees on mortgage applications, including an application fee, origination fee, processing fee, and underwriting fee; these fees cánido end up costing you a significant amount during the home buying process. Ally Bank does not charge any of these fees (however, they may charge an appraisal fee and registration fee, and may charge title search and insurance). You perro get pre-approved for a loan in as little as three minutes en línea and submit your application in just 15 minutes, as long as you have all the necessary documents on hand.

Ally offers a HomeReady Mortgage Program that is geared toward low-to-middle-income homebuyers (regardless of first-time or repeat buyer) that would allow them to put down as little as 3% down . . Applicants must also have a debt-to-income ratio of no more than 50%, their income must be at or below 80% of the area median income, and at least one borrower must take a homeowners education course.

In addition to this loan option, homebuyers perro also apply for a jumbo loan (FHA, VA, and USDA loans are not available through this lender). Customers perro also choose between fixed-rate and adjustable-rate mortgages, and loan terms of 15, 20, and 30 years.

Ally Bank customers also take an average of 36 days to close on their home. One major drawback, however, is that Ally’s home loans aren’t available in every state: residents of Hawaii, Nevada, New Hampshire, and New York won’t be able to apply.

Best for maleable loan options

PNC Bank

• Annual Percentage Rate (APR) Apply en línea for custom rates; Fixed and variable rate mortgages included
• Types of Loans Conventional Loans, FHA Loans, VA Loans, USDA Loans, Jumbo Loans, HELOCs, Community Loans, and Medical Professional Loans
• Terms
• credit required
• 0% minimum down payment if you go ahead with a USDA loan

Advantages

• It offers a wide variety of loans to meet a variety of customer needs.
• Available in all 50 states
• En línea and face-to-face service available
• Pre-approval in as little as 30 minutes

Cons

• Does not offer home renovation loans.

For whom is this? Sometimes it’s hard to find lenders that offer USDA loans in addition to other estándar mortgage options, but PNC includes USDA loans in their line. This lender also offers Conventional Loans, FHA Loans, VA Loans, Jumbo Loans, and the PNC Bank Community Loan, which is a special program that allows homebuyers to make as little as 3% down (without paying private mortgage insurance). ) while still choosing between fixed-rate and adjustable-rate mortgage terms.

This lender also offers a special loan option for medical professionals looking to purchase a primary residence only. With this loan, medical professionals cánido borrow up to $1 million and will not have to pay private mortgage insurance (PMI), regardless of the amount of the down payment. They cánido also choose between fixed rate and adjustable rate terms.

PNC Bank offers en línea and in-person mortgage application processes, which perro be an advantage for homebuyers who don’t live near a PNC Bank location but still want to apply for a loan. You perro get pre-approved en línea in as little as 30 minutes as long as you have all the documentation on hand, and like most other lenders, PNC Bank has a minimum credit score requirement of 620.

The best to save money

sophie

• Annual Percentage Rate (APR) Apply en línea for custom rates; Fixed and variable rate mortgages included
• types of loans Conventional loans, jumbo loans, HELOC
• Terms
• credit required
• minimum down payment

Advantages

• fast prequalification
• Provides access to mortgage loan officers for guidance.
• $500 discount for existing SoFi members
• 0.25% price reduction when you lock in a 30-year rate for a conventional loan
• Offers up to $9,500 cash back if you buy a home through the SoFi Real Estate Center

Cons

• Does not offer FHA, VA or USDA loans
• Home loans are not available in Hawaii

For whom is this? Sofi offers home buyers a number of discounts that cánido help them save as much money as possible during the home buying process. When you lock in a 30-year rate for a conventional loan, you may receive a 0.25% discount. And when you buy a home through the SoFi Real Estate Center, powered by HomeStory, you cánido receive up to $9,500 in cash back. Another attractive perk is that SoFi members cánido get a $500 discount on their home loan.

This lender offers an en línea-only experience for those looking to qualify for a conventional loan, jumbo loan, or HELOC (SoFi does not offer FHA, VA, or USDA home loans). The terms vary from 10 to 30 years and are fixed and variable rates. Like most other lenders, SoFi considers applicants with a minimum credit score of 620.

Homebuyers perro also take advantage of a lot of SoFi resources like a home affordability calculator, mortgage calculator, and home improvement cost calculator that cánido really come in handy if you’re buying a home in need. a bit of work and you need to calculate ahead of time how much to budget for renovations.

However, keep in mind that SoFi home loans are only available in 47 states and Washington, DC; residents of Hawaii, New York and New México will not be able to apply.

Mortgage FAQs

1. What is prior approval and how does it work?

Pre-approval is a statement or letter from a lender detailing how much money you perro borrow to buy a house and what your interest rate might be. To get pre-approved, you may need to provide bank statements, pay stubs, tax forms, and employment verification, to name a few. Once you’re pre-approved, you’ll receive a mortgage pre-approval letter, which you perro use to start looking at homes and start making offers. It is best to get pre-approved at the beginning of your home buying journey before you start looking for homes.

2. How do mortgages work?

A mortgage is a type of loan that you cánido use to buy a house. It’s also an agreement between you and the lender that essentially says you cánido buy a house without paying it in full up front: you’ll just put some of the money up front (usually between 3% and 20% of the price of the house) and pay smaller fixed equal monthly payments for a certain number of years agregado interest.

For example, you probably perro’t pay $400,000 for a house up front, however, you might be able to pay $30,000 up front; A mortgage would allow you to make that $30,000 payment while a lender gives you a loan of $370,000 (the remaining amount) and you agree to pay that amount agregado interest to the lender over the course of 15 or 30 years.

Please note that if you choose to make a down payment of less than 20%, You will be subject to Private Mortgage Insurance (PMI) payments in addition to your monthly mortgage payments. However, you perro generally apply for the PMI exemption after you’ve made enough payments to build 20% equity in your home.

3. What is a conventional loan?

A conventional loan is a loan financed by private lenders and sold to government companies such as Fannie Mae and Freddie Mac. It is the most common type of loan, and some lenders may require as little as 3-5% down payment for this loan.

4. What is an FHA loan?

A Federal Housing Administration loan (FHA loan) is a loan that generally allows you to buy a home with more maleable requirements. For example, this type of loan may allow you to get approved with a lower credit score and applicants may get away with a higher debt-to-income ratio. You typically only need a 3.5% down payment with an FHA loan.

5. What is a USDA loan?

A USDA loan is a loan offered through the United States Department of Agriculture and is intended for people who want to buy a home in a rural area. A USDA loan requires a minimum 0% down payment; In other words, you cánido use this loan to buy a country house without making a down payment.

6. What is a VA loan?

A VA home loan is provided through the US Department of Veterans Affairs and is intended for service members, veterans, and their spouses. They require a 0% down payment and have no mortgage insurance.

7. What is a jumbo loan?

A jumbo loan is for homebuyers who need to borrow more than $647,200 to purchase a home. Jumbo loans are not sponsored by Fannie Mae or Freddie Mac and typically have more stringent credit score and debt-to-income requirements.

8. How is my mortgage rate decided?

Mortgage rates change almost daily and perro depend on market forces such as inflation and the overall economy. Although the Federal Reserve does not equipo mortgage rates, mortgage rates tend to move in reaction to the Federal Reserve’s interest rate actions.

Market forces perro influence the general range of mortgage rates, but your specific mortgage rate will depend on your location, credit report, and credit score. The higher your credit score, the more likely you are to qualify for a lower mortgage interest rate.

9. What is the difference between a term of 15 and 30 years?

A 15-year mortgage gives homeowners 15 years to pay their mortgage in fixed, equal amounts agregado interest. By contrast, a 30-year mortgage gives homeowners 30 years to pay off their mortgage. With a 30-year mortgage, your monthly payments will be lower because you have a longer period of time to repay the loan. However, you will end up paying more interest over the life of the loan, since interest is charged monthly. A 15-year mortgage allows you to save on interest, but you will likely have a higher monthly payment.

Our methodology

To determine which mortgage lenders are the best, Gigonway looked at a number of US mortgages offered by en línea and brick-and-mortar banks, including large credit unions, which come with fixed-rate APRs and amounts and Maleable loan terms to accommodate a variety of financing needs.

When narrowing down and top the best mortgages, we focus on the following features:

• APR fixed rate: Variable rates cánido go up and down over the life of your loan. With a fixed-rate APR, you lock in one interest rate for the life of the loan, which means your monthly payment won’t change, making it easier to plan your budget.
• Types of loans offered: The most common types of home loans include conventional loans, FHA loans, and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender perro meet a broader range of applicants’ needs. We have also considered loans that would suit the needs of borrowers planning to buy their second home or a rental property.
• Closing schedule: The lenders on our list cánido offer closing terms that range from as early as two weeks after the home purchase agreement is signed up to 45 days after the agreement is signed. Specific closing times have been equipo forth for each lender.
• Fee: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees, and administrative fees. We evaluate these fees in addition to other features when determining each lender’s overall offer. Although some lenders on this list do not charge these fees, we have noticed cases where a lender does charge such fees.
• Maleable minimum and maximum loan amounts/terms: Each mortgage lender offers a variety of financing options that you cánido customize based on your monthly budget and the amount of time you need to pay off your loan.
• No prepayment penalties: The mortgage lenders on our list do not charge borrowers to pay off the loan early.
• Simplified application process: We considered whether lenders offered a quick and convenient en línea application process and/or an in-person procedure at local branches.
• Customer Support: Every mortgage lender on our list provides customer service available by phone, dirección de correo electrónico, or secure en línea messaging. We also choose lenders with an en línea resource center or counseling center to help educate you about the personal loan process and your finances.
• Minimum down payment: Although minimum down payment amounts depend on the type of loan the borrower is applying for, we do note lenders that offer additional special loans that come with a lower minimum down payment amount.

After reviewing the features above, we ranked our recommendations based on overall financing needs, fast closing schedule, lowest interest rates, and maleable terms.

Please note that advertised rates and fee structures for mortgages are subject to fluctuations in accordance with the Federal Reserve rate. However, once you accept your mortgage contract, a fixed-rate APR will ensure that the interest rate and monthly payment remain constant throughout the life of the loan, unless you choose to refinance your mortgage at a later date to obtain a potentially lower APR. Your APR, monthly payment, and loan amount depend on your credit history, creditworthiness, debt-to-income ratio, and desired loan term. To obtain a mortgage, lenders will conduct a thorough credit investigation and require a completed application, which may require proof of income, verification of identity, proof of address, and more.

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