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.
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
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?
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
What if a payment is missed for a mortgage?
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.