Homeownership has its own set of unique challenges, especially for first-time home buyers. Picking a suitable mortgage lender is a crucial step in this process, ensuring you secure the best rate, favorable terms, and minimal closing costs.
How to Choose a Mortgage Lender
Comparing various mortgage options can make it easier to navigate the sea of choices and save on money. When you have at least three lenders vying for your business, you can pinpoint the mortgage package that distinguishes itself with a lower rate and reduced fees.
Comparing Mortgage Lenders
Consider your preferences for service and lending experience when comparing lenders. Whether you prefer in-person interactions at a brick-and-mortar bank or a streamlined digital process, your choice of traditional banks, nonbank lenders, credit unions, or mortgage brokers depends on your personal style.
Applying for Mortgage Pre-Approval
To gauge potential offers, apply for mortgage pre-approval with multiple lenders. This step provides insights into your borrowing capacity, offered interest rates, and a preview of each lender’s service quality.
Down Payment Considerations
The required down payment varies based on the type of home loan. While conventional loans may offer down payments as low as 3%, some buyers opt for higher percentages to avoid private mortgage insurance. FHA loans and VA loans offer low down payment options based on credit scores.
Assistance with Down Payments
Down payment assistance programs are there for first-time home buyers, and are often administered by state housing authorities. These programs can provide valuable support, though eligibility criteria, income restrictions, and residency requirements may apply.
The Best Mortgage Lenders for 2024
- Guaranteed Rate: Best for customer satisfaction
- New American Funding: Best for borrowers with nontraditional credit
- NBKC: Best for rate transparency
- PNC: Best for first-time home buyers overall
- Andrews Federal Credit Union: Best for military borrowers
- Flagstar: Best for overall mortgage lending
- Network Capital: Best for self-employed borrowers
- Truist: Best for digital convenience
- Guild Mortgage: Best for customer satisfaction
- Churchill: Best for a variety of loan types
- CrossCountry Mortgage: Best for first-time home buyer programs
- Movement Mortgage: Best for government-backed loans
Embark on your home buying journey with confidence by choosing the right mortgage lender tailored to your unique needs and preferences.
