Best Mortgage Lenders of 2018
We have identified the best mortgage lenders of 2018 based on various specific factors. A mortgage is probably the biggest loan you will ever obtain, so we can say it is important to choose the right one. And because of the size of the loan, getting approval and the best interest rate possible is not usually easy. Mortgage loans are formerly limited to local banks and other lending institutions, but the internet and current banking regulations have made it possible to search online and nationwide for lenders.
Best Mortgage Lenders of 2018
Best Overall: Quicken Loans
The best overall among the top mortgage lenders of 2018 is Quicken Loans. Quicken Loans has a footprint nationwide and it makes online application for a mortgage very simple for the borrower. It also provides competitive rates. The online application is especially attractive because it eliminates the usual hassles required by many traditional lenders.
Best Online: SoFi
The best online lender among the top mortgage lenders of 2018 is SoFi (Social Finance). SoFi concentrates on owner-occupied homes. The mortgage application process at SoFi begins with a pre-qualification which does not affect your credit score and it can be completed in about two minutes. One significant benefit of SoFi is that they don’t require an origination fee. As a result, they are cheaper than other mortgage lenders that offer even the same interest rate.
Best for Poor Credit: New American Funding
The best lender for poor credit among the top mortgage lenders of 2018 is New American Funding. It manually reviews every loan application before granting approval or rejecting a loan request. Some online mortgage lenders grant instant approval or denial using computer algorithms, this makes it difficult to obtain a loan with poor credit. The manual review process enables them to consider other factors like high income and good savings.
Best for Customer Service: Lenda
Lenda provides concierge services to assist borrowers through the entire mortgage lending process. Lenda’s digital mortgage application system eliminates the hassle of missing documents by clearly stating what is needed and provides updates regarding what is lacking, so your approval or loan funding is not delayed by any document or form.
Best for Refinancing: Loan Depot
The best refinancing lender among the top mortgage lenders of 2018 is Loan Depot. With Loan Depot, the refinancing process is smooth and easy. Loan Depot is so renowned for mortgage refinancing that it has provided over $70 billion in funding for loan refinancing. Loan Depot also eliminates refinance fees and pays back appraisal fees for subsequent refinances after the first mortgage refinance with them. This could mean you could be saving even more money when refinancing your home with them.
Best for Low Income: Citi Mortgage
FHA and VA loans, two key government-supported lending programs are top choices for low income earners, whose down payments are probably also low. Citi Mortgage is affiliated to Citibank, one of the biggest banking institutions in the United States. Citi’s size makes it possible for them to offer mortgage loan options for almost anyone who is qualified. If you are eligible for the FHA or VA mortgage loan programs, it is very likely to get approval for loan from Citi Mortgage.
Best Interest-Only: Guaranteed Rate
The best lender for interest-only mortgages is Guaranteed Rate. It claims a top 10 position in retail lending and 95% customer satisfaction. Guaranteed Rate provides interest-only mortgage lending in all the 50 states and Washington, D.C. Most of the loans have between five and ten years tenure and enable you to preserve cash flow in the process of purchasing a home that otherwise might be beyond what you can afford.
Best Traditional Bank: Chase
Chase claims to have more than 5,300 branches and almost half of all American households as clients in one way or another. They provide industry-leading mobile and online apps for easy management of the mortgage. Chase’s customer service is better than that of many competing big, national banks. Chase provides the best choice for in-person mortgage lending experience.
Types of Mortgage Loans
A conventional mortgage is a loan that is not covered by federal government insurance. The two types of conventional loans are conforming and non-conforming loans. Conforming loans adhere to the maximum limits fixed by Fannie Mae or Freddie Mac while non-conforming loans do not.
Non-conforming mortgage loans are known as Jumbo mortgages. According to the Federal Housing Finance Agency, the maximum limit for conforming loans in most parts of the U.S. for single-family homes is $453,100 in 2018. In some high-cost areas, the maximum price limit is $679,650.
Three government agencies that provide backing for loans are the Federal Housing Administration (FHA loans), the U.S. Department of Agriculture (USDA loans) and the U.S. Department of Veterans Affairs (VA loans). Government-insured mortgage loans are ideal for borrowers with low savings, low credit and who are not eligible for conventional loans.
Fixed-rate mortgages maintain the same interest throughout the tenure of the loan. The terms of fixed loans are generally 15, 20 or 30 years.
Unlike fixed-rate loans, adjustable-rate mortgages (ARMs) have variable interest rates that can rise or fall depending on market conditions.