Top 3 Mortgage Lenders

The landscape of mortgage lending has changed over the last several years. Lenders have had to become increasingly competitive to stay in touch with the modern home buyer. The top three companies to obtain a mortgage from currently are Lending Tree, Quicken Loans, and Rocket Mortgage. These three companies have combined competitive interest rates with excellent customer service and modern technology. These lenders also provide helpful services and advice for both potential and current clients. People looking to do business with a reputable lender that works one on one with their clients to help them achieve their dream of owning a home should check them out to see what types of rates and benefits they have to offer.

What is a good interest rate currently?

The average interest rate for today's market falls between 3% and 5%. This depends on whether or not it is a 15-year or a 30-year mortgage. Having a good credit score is also a determining factor in whether or a favorable rate is offered to the borrower.

What type of credit score is needed to obtain a favorable loan?

Lenders look for a score above 650 for a favorable offer. Anything below 600 is likely to be rejected. Some organizations such as FHA can work with credit scores in the upper 500s. Check credit scores before approaching a lender to determine if work is needed to increase the score to avoid a rejection or higher interest rate.

How much house is appropriate for a first-time homeowner?

First-time homeowners are advised to remain conservative with their purchase. The typical first time home buyer should purchase a home under 2000 square feet and, on average 3 bedrooms. Consult a realtor or your lender for advice on making decisions for first-time buyers.

Is shopping around for a good rate advisable?

Always shop around for a good rate. Explore all options and compare offers to obtain the most favorable rates and benefits. Many lenders today can go above and beyond to point homebuyers in the right direction. Lenders like Rocket Mortgage and Lending Tree offer online information, credit monitoring and more to help prospective borrowers

What is the difference between a 15 year and a 30-year mortgage?

A 15-year mortgage will allow a borrower to have a lower interest rate and pay off their loan faster. Some circumstances may require a 30-year loan but it is advised to apply for a 15-year loan if possible because the borrower can build equity faster. Ask a lending company about the benefits of both types of loans to help with decisions.

What factors affect a lender's decision?

One of the key factors in lending is credit history and scores. Other points of interest for lenders include employment history, assets, age, and personal information. Asking a lender what factors they consider before applying help potential borrowers organize their history and credit information to avoid delays or rejections

Is refinancing a home a good idea?

Refinancing your home allows you access the equity in your home, but it may not be a wise decision for some homeowners. This should only be considered for emergencies or hardships. Paying off the initial mortgage is usually the best strategy.

What if a payment is missed for a mortgage?

Although missing payments is ill-advised, it can happen in some instances where unexpected expenses crop up, or there is a family emergency. As soon as the payment is missed, the borrower should contact the lender to make arrangments and keep them informed. This may also help prevent negative marks on a credit report.

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