Mortgage Companies

What is Mortgage?

A mortgage is when you take out a loan to buy a house. When you take a mortgage, the house you purchase becomes collateral and the lender keeps the title of the property until you finish paying for the loan.


You will be expected to make monthly payments on the loan. Interest rates are also charged on the loan.

Types of Mortgage Loans

The two major types of mortgage loans: government-backed loans and conventional loans. The government-backed loans include FHA 203(k) loans, VA loans, USDA loans, and local mortgage loans.

Understanding Mortgage

When you apply for a mortgage, there are a number of terms that are bound to pop up. It is important that you know all about them before you apply. At least you will not need to deal with unexpected rates. You will also know what the lender expects of you.

Here are some things that are involved in the application of mortgages.

  1.    Credit Score:

The lender will consider your credit score when you apply. Some loan products accept low credit scores. With the government-backed loans, the credit score requirements are lower. You are eligible for an FHA loan if you have a minimum credit score of 500.

VA loans do not have minimum credit score requirements but you need a minimum credit score of 640 to get a USDA loan. Conventional loans also have credit score requirements, they depend on the lender.

  1.    Down Payments:

This is the amount you will pay upfront for the property. Government-backed loans have the minimum down payment requirement. You can pay as low as 3.5% of the house price as down payment. The larger the down payment you make, the lower the interest rate on the loan.

  1.    Loan term:

This is also important when you consider a mortgage loan. There are fixed loan terms that usually range from 15 to 30 years.

  1.    Interest Rates:

The lenders charge interest rates on the loan amount. The riskier the loan, the higher the interest rate. Usually, higher loan amounts are riskier to lenders and that means the rates on higher amounts are higher.

  1.    Property Type:

The property type is also important when you are applying for a mortgage loan. Lenders charge rates based on the type of property. Single-family homes have lower rates compared to condos, mobile properties, and multifamily properties.

  1.    Use of the Property:

The rates also depend on what you are going to use the property for. If you are using it as your primary home, the rates are lower than that of properties that will be used as investments or vacation homes. Lenders believe that people who take mortgages for primary homes are more serious about paying off their loans because that is their only shelter. This makes their loans less risky.

  1.    Homeowners insurance:

Lenders request that you get a homeowners’ insurance when you purchase a property with a mortgage. The insurance insures the property against fires and other unexpected instances that can damage the property. The lender uses the home as collateral hence they need to protect it against damages.

  1.    Fees:

Home buyers may also pay fees including appraisal fees, closing fees, association fees, survey fees, origination fees, attorney fees, credit report fees, mortgage broker fees, and government-backed loan fees.

Best Mortgage Companies

  1.    Lenda

Lenda represents a good option for someone who does not want to deal with a lot of paperwork. This firm allows you to upload all your documents online. You can also get a quote online to keep you pre-informed about the cost of closing.

Lenda is well known for its low fees. They charge a low overhead cost and there are no origination fees. Even with all these low fees, their interest rates are competitive. They also have a fast closing time; the average is 13 days.

Unfortunately, Lenda is not available in all states in the country. Lenda operates only in Arizona, California, Texas, Colorado, Florida, Michigan, Oregon, Illinois, Georgia, Pennsylvania, Virginia, Washington. They are extending their business and they will cover more states soon.

  1.    Lending Tree

Lending Tree works with a pool of lenders who are ready to fund your mortgage application. You have the option of comparing several offers from different lenders since Lending Tree deals with reputable and well-established lenders.

The good thing is that once you submit your application, these lenders will send you their offers in minutes. You can take your time to compare the lenders’ offers and choose the one that will be best for you. You can also apply for FHA, VA, or conventional loans online. Their website also provides valuable information for homebuyers.

Irrespective of where you are in the buying process, Lending Tree’s website has a lot of informational materials to keep you on track. You can get information on how to qualify for mortgages and how to avoid mistakes when buying a house.

Most of the frequently asked questions on mortgages have been answered on this firm’s website.

  1.    Loan Depot

Loans Depot works in all 50 states, so many borrowers can access their loans. With government-backed mortgage programs such as FHA or VA loans, you can apply for a loan with a minimum credit score of 580.

You can also qualify for almost all their other loans with a minimum credit score of 620. Their loan officers will offer you all the information you need concerning mortgages. You can then choose the option you prefer.

They charge an origination fee that can cost between 1% to 5% of the home purchasing fee. The application can be done online meaning you have no time constraints.

  1.    Quickens Loan

Quickens Loan was named the highest loan originator by volume and the second largest by Dollar volume in 2016. This lender is widely available and can be accessed anywhere in the country.

Their application process is also simple and easy. You do not need to worry about paperwork since there is little or no paperwork when you apply to Quickens Loan. There is also nothing tedious about their form completions; you will not need to key in account details.

All that will be done automatically when you provide your bank account details. They have a competitive interest rate which makes them a recommended choice for homebuyers. Quickens Loan demands a 1% down payment for all qualified home buyers. They are the highest FHA lender in the country.

  1.    New American Funding

New American Funding gives hope to borrowers with low credit scores. Unlike some lenders who review applications using computer algorithms, New American Funding reviews applications manually.

Computer algorithms approve or disapprove applications based on numbers such as credit scores. New American Funding’s method of reviewing applications allow them to consider other factors such as high savings and income when approving applications.

This allows them to approve some applications for borrowers with bad credit scores. In some cases, even people with credit scores as low as 580 qualify for loans. As direct lender, New American Funding offers conventional, VA, and FHA loans.

There are also reverse mortgages, home renovation loans or interest-only mortgages. They also have low down payment programs and they charge a flat rate for origination fees.

  1.    Guild Mortgage

If you are looking for government-backed mortgage products, you can apply though Guild Mortgage. These loans come with low down payments. You can apply for a USDA, FHA, and VA loans with only 3.5% as down payment.

There are also jumbo products with down payments as low as 5%. You will need a minimum credit score of 580 for FHA loans, 600 for VA and USDA loans, 620 for conventional loans, and 680 for jumbo loans.

Your maximum debt to income ratio should be 50% for non- qualifying mortgage, 43% for jumbo, and automated underwriting for all others.

       7.      Social Finance (SoFi)

Social Finance is a finance company which started off as a student loan refinancing company is now a company that deals with personal finance include mortgage loans.

SoFi offers an opportunity to people with a low credit score as well. This company does not only consider your credit score when it is granting loans. It also considers your learning potential and your college degrees.

You can check if you pre-qualify for this loan. The pre-qualification process takes about 2 minutes and it does not affect your credit score. You can receive the funds within 30 days of application. Their loan terms are fixed 15 years and 30 years.

The good thing is that SoFi does not charge origination fees on their loans.   

       8.       CitiMortgage

CitiMortgage is related to CitiBank and this bank is one of the largest banks in the country. Everyone who qualifies for a mortgage loan gets it when they apply to CitiMortgage.

CitiMortgage offers FHA and VA loans and that makes it easy for people with low income to get mortgage loans. FHA and VA require very low down payment since they are backed by the government. There are also refinancing options.

This lender works hard at getting you a loan that will meet your needs.

  1.    U.S Bank

You can check if you pre-qualify for a loan in 2 minutes. You can use that to make decisions about your home purchase. This lender offers VA loans, conventional fixed-rate loans, FHA loans, and ARMs.

They also offer investment property loans and new construction loans. One good thing about this lender is the app called “loan officer near you” that allows you to get in touch with a loan officer who has in depth knowledge about your area and can help you with a lot of information about the area.

This helps you to make informed decisions on your mortgage loan applications.

  1.    Guaranteed Rate

Guaranteed Rate is a company that specializes in mortgages. They aim that helping people to access a loan at a lower cost.

Their application is also simplified; you can complete your application and submit your documents online. You can review the contract and sign electronically. You should, however, note that when you are completing the application form, you will be asked questions concerning your financial status. These help the company to make a good loan recommendation.

You can then book a 10- minute closing appointments There are several loan products including FHA, USDA, VA, jumbo, and adjustable- rates offers. The company helps you to identify the best loan offers for you.

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