Did you know that your credit score can determine which mortgage lenders you’ll be able to work with? Fortunately, having an excellent credit score means that you’ll most likely qualify for a mortgage from almost any lender and better yet your great credit means lower interest rates. Because of your financial strength shown on your credit report, different lenders will be clamoring for your business (money), you get your pick. With so many options you’ll have to do your research to narrow down the right lender for you. Here are some of the best new mortgage lenders to consider.
Overview of the best mortgage lenders for excellent credit
Quick & convenient closing process
Navy Federal Credit Union
Military member benefits
Unique mortgage options
Best mortgage lenders
Better is an online lender that was created to make your path to homeownership as streamlined as possible. This mortgage lender offers fixed-rate and adjustable-rate conventional loans and jumbo loans. One of the benefits of using Better for your mortgage lender is that you won’t be asked to pay any commission or other extra fees.
Better’s streamlined process starts with getting an instant loan estimate. All you need to do is answer a few questions to get your loan estimate. According to Better, this outranks its competitors, as the competitors may take 3 or more days to provide you with a loan estimate. Once you’ve begun the mortgage process with Better, you’ll have access to total transparency from the mortgage lender. This includes a clear picture of exactly where you are in the mortgage process and a roadmap to what steps lie ahead.
The great thing about Better is that you can take things at your own pace. You can lock in your mortgage rate whenever you’re ready to do so. You can also trust that in addition to no commission, you won’t be charged any origination fees from Better. The entire mortgage process can be done online so you can take the steps whenever you’re ready without worrying about setting up appointments and fitting them into your schedule.
If you do need some assistance, Better is available to you by phone or email 24/7. You can also browse the resources available on Better’s website to learn more about your mortgage options. These online resources include current mortgage interest rates for both purchasing and refinancing a home.
Guaranteed Rate is a mortgage lender that claims to have created the World’s First Digital Mortgage. Like some of its competitors, it aims to offer low rates and an easy process for all of its customers.
There are several loan options available from Guaranteed Rate. This includes a 15-year and 30-year fixed-rate mortgage, adjustable-rate mortgages, jumbo loans, FHA loans, and VA loans. Guaranteed Rate even offers Interest Only Mortgages, which offer low monthly payments upfront to help you allocate your money elsewhere.
When you use Guaranteed Rate, you can look for a specific loan expert or get matched with one. Guaranteed Rate’s loan experts are committed to helping you get the best rate for your mortgage. However, there are also fees associated with getting your mortgage from Guaranteed Rate.
Even if you’re just browsing currently, Guaranteed Rate has something to offer almost everyone. You can use the mortgage calculator on the Guaranteed Rate website to access real-time rates and information with no commitment. If you do decide to move forward with getting a mortgage from this lender, you can expect your application process to take as few as 15 minutes. You’ll also benefit from secure document portals to share your documents easily and a fast closing process.
loanDepot is an online lender that backs up its support with a lifetime guarantee on its mortgage products. In addition to its customer-centered approach, loanDepot also makes a name for itself in its community service to help support customers in every way possible.
loanDepot’s lifetime guarantee is a unique offering in the world of mortgages. If you purchase your home using a loanDepot mortgage, you can benefit from this guarantee if you ever refinance your home. After you finance with the lender for the first time, loanDepot will waive lender fees if you refinance using loanDepot in the future. It will also reimburse your appraisal fee when you refinance.
You’ll have plenty of options if you choose loanDepot, too. It offers fixed-rate, adjustable-rate, jumbo, VA, FHA, and HARP mortgages for both initial purchases and refinancing. You can apply for these mortgages using loanDepot’s mello smartloan, a fully digital mortgage experience. Mello smartloan can help you save money and make the mortgage process more efficient in several ways. First, it allows loan officers to determine whether you might qualify for an appraisal waiver and let you know within minutes after you’ve submitted your application. If you do need an appraisal, it can also help you review your appraisal valuation sooner than average. In addition to saving you time throughout the process, the technology offered through mello smartloan may even be able to allow you to close on your home up to 17 days sooner.
Though it offers an efficient online experience, you can also easily reach loanDepot by phone. There are several dedicated ways to contact the right people by phone or email, based on whether you have general questions or need help with a loan that is already in process.
Navy Federal Credit Union
Navy Federal Credit Union was founded in 1933 by 7 Navy Department employees who wanted to help their coworkers reach their financial goals. Today, this small group of naval employees has grown and remained true to their original goal of helping their military community. The credit union exclusively serves the military, veterans, and their families.
Every mortgage option offered by Navy Federal Credit Union is laid out on its website. This includes the mortgage rates, down payments, and the payment terms available. You can choose from a conventional fixed-rate, homebuyer choice, military choice, and VA mortgage loans.
Like many lenders, Navy Federal Credit Union offers a tool to help match you with a mortgage option that best fits your situation. You can take advantage of its interactive video to answer questions that will allow the credit union to match you with an appropriate home loan. Or, if you prefer, you can call a mortgage specialist to discuss your options further.
Since Navy Federal Credit Union is a not-for-profit credit union, this puts it in a unique position to give back to its members. This includes having surplus funding to improve products and services, reduce loan interest, and more. As a part of its commitment to community service, Navy Federal Credit Union has representatives available to members by phone 24/7. You can also receive assistance through a live chat, secure online message, or in-person at a branch location.
Quicken Loans is one of the most recognized names in the mortgage business, and for good reason. This lender’s large standing allows it to offer robust online tools and services to help any homebuyer through the mortgage process.
You can get almost any mortgage type imaginable from Quicken Loans. This includes fixed-rate and adjustable-rate mortgages, FHA loans, VA loans, Jumbo loans, and USDA loans. Quicken Loans also offers YOURgage, a fixed-rate mortgage with a flexible term. You can choose to repay your loan over anywhere from 8 to 29 years with this mortgage, and trust that your rate is locked in for life. To qualify, all you need is a credit score of 620 or more, a debt-to-income ratio of no more than 50%, and a minimum of 3% for your down payment. As with any mortgage, you should also factor in closing costs when considering the upfront costs of buying your home.
Quicken Loans offers a simple mortgage experience, starting with the application process. You can apply for your mortgage online, or talk to a Home Loan Expert about it if you’d like. Once you enter your information, you’ll automatically be matched with the best loan options based on your goals and finances. Quicken Loans also provides tools to help you understand the costs and benefits of each loan option.
Once you’ve closed on your home, you’ll still be able to maintain a relationship with Quicken Loans. It services 99% of its loans, so the chances are that your loan will be serviced by Quicken Loans. This means that you’ll be able to keep everything in one place, including your payments and easy access to your tax and insurance information. Plus, Quicken Loans offers mortgage advice to help you throughout the lifetime of your loan.
Quicken Loans offers several ways to get in touch. Its chat feature is available every day of the week for the majority of the daytime and evening hours. You can also call Quicken Loans for assistance or to make your mortgage payments.
Rocket Mortgage is an online mortgage experience that was developed and is owned by Quicken Loans. If you use Rocket Mortgage, your mortgage will be processed by Quicken Loans.
According to its website, Rocket Mortgage can be a good option no matter what stage of the home buying process you’re in. You can use Rocket Mortgage if you’re just starting to search for a home if you’re ready to make an offer on your home, and even if you’ve already signed a purchase agreement. If you’re more than 6 months away from buying a home, you can start using Rocket Mortgage’s tools — like the affordability calculator — to start doing your research.
Although Rocket Mortgage was designed to provide an online mortgage experience, you can still use it if you prefer to take things offline. You can speak to home loan experts to discuss your options and get answers to some of your mortgage questions. In some cases, you may even need to chat with a home loan expert to provide more information that will help match you with the right loan.
You can use Rocket Mortgage to get approval for any of the mortgage types that are offered by Quicken Loans, including FHA loans and VA loans. Rocket Mortgage’s home loan experts can be reached by phone or online chat any day of the week during most daytime and evening hours.
SoFi was originally founded in 2011 as an alumni-funded lending model by Stanford business school students. After launching its student loan refinancing in 2012, in 2014 SoFi became a mortgage lender as well.
When it comes to mortgage types, SoFi has its pros and cons. It only offers fixed loans, but there are quite a few terms available to choose from. Your fixed-rate loan can carry a 10, 15, 20, or 30-year term. You can also refinance your mortgage, and SoFi offers both cash-out refinance and student loan cash-out refinance options for refinancing. SoFi also offers a home equity loan called Spring EQ, which is similar to HELOCs in that it uses your home as collateral.
SoFi allows you to get pre-qualified for your mortgage in just two minutes. This allows you to get your rate and start comparing your mortgage options. While you can complete the process online, there are mortgage loan officers available that can help guide you through the application process. You can also reach SoFi’s member specialists if you have other questions.
One of the unique benefits of using SoFi is the exclusive membership bonuses that it offers. You can save up to $500 on a mortgage loan or refinancing processing fees as a SoFi member. If you use SoFi for other loan products, you may also qualify for an interest rate deduction on your home loan. There are a lot of benefits listed on the SoFi website, however, you should be aware that not every benefit applies to home loan customers.
The difference between preapproval and pre-qualification
Pre-qualification is usually the first step that you’ll take in the mortgage process. This is when you give mortgage lenders a few financial details so they can give you an estimate of how much you can borrow and what your interest rate might be. Even if you receive a pre-qualification, it does not mean that you will be guaranteed approval of a certain loan type, amount, or terms. Most pre-qualifications should not affect your credit score.
The preapproval process is longer and does affect your credit score. This is when lenders will take a more in-depth look at your finances, employment history, and credit history. The preapproval process also includes a hard pull of your credit, meaning that it will affect your credit score.
Getting a preapproval letter can give you a leg up if you’re seriously considering making an offer on a house. Not only does it show how much you’re qualified to borrow, but it also proves to sellers that you are serious about purchasing a home very soon. Most pre-approval letters expire after 90 days, so you wouldn’t want to get one before you’re ready to seriously consider making an offer on a home.
What is the best mortgage type for first-time homebuyers?
Unfortunately, there is no one best mortgage type for a first-time homebuyer. The best mortgage type will always depend on your specific financial circumstances, as well as your financial goals and preferences. You’ll also want to consider whether you qualify for certain loan programs, such as VA loans and USDA loans.
Do I need private mortgage insurance?
Private mortgage insurance (PMI) is designed to protect your mortgage lender if you fail to make payments on your mortgage. If you’re planning to take out a conventional home loan, private mortgage insurance may be required if you make a down payment of less than 20%.
What are Fannie Mae and Freddie Mac?
Fannie Mae and Freddie Mac are home mortgage companies that were created by the United States Congress. Instead of originating loans, they buy and guarantee mortgages that are issued by other lenders in the secondary mortgage market. This is a good thing because the guarantees that it makes to banks and mortgage companies make the mortgage market more stable overall.
Why use these mortgage lenders
Like many things, every mortgage lender comes with its pros and cons. When choosing the mortgage lender that you want to use, there are a few things to keep in mind:
Which mortgage type works best for you?
Are there any specific mortgages or programs that you qualify for?
How much money do you want to spend overall?
How much can you afford to put toward a down payment?
Do you prefer an online or in-person experience?
All of these personal factors can help you narrow down the lenders you want to use, based on the mortgage type you want and the experience that you prefer. The lenders chosen here all offer unique benefits that may or may not apply to you, depending on your circumstance. However, all together, these lenders represent an array of quality lenders that could work for a wide range of circumstances.
The bottom line
If you have excellent credit, then you’ll have your pick of mortgage lenders. However, it’s still important to take your time and do your research before choosing the lender that works for you.
One of the most important things to consider when picking your lender is the mortgage type that you prefer. Fortunately, most lenders have plenty of information on its website about the mortgage types available. You may even be able to take a quiz to figure out which mortgage types a lender would recommend based on your circumstances. Once you’ve narrowed down mortgage types and terms, you’ll be able to select the lenders that offer them and work from there.
At the end of the day, you’ll want to choose a mortgage lender that you feel comfortable with. Remember, you’ll be paying off your mortgage for up to a few decades, so you’ll want to consider your long-term goals and responsibilities as well as your short-term finances before you decide.
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