Living in the Great Lakes State is full of natural beauty, plenty of great things to do, and a reasonable cost of living. It’s obvious why someone would want to buy a home here. But buying a home is a complex process, and it’s important to have everything in order.
Finding a lender is one of the more challenging aspects of buying a home. You should review the various programs you might qualify for if you’re a first-time buyer. You also want to review various mortgage lenders and compare them to make sure you get the best deal.
Do you know what to look for? Here are the things you need to know about what makes a mortgage lender stand out, and the five best mortgage companies in Michigan to get you started.
Choosing a Great Lender
While you want to compare interest rates and fees, those aren’t the only parts of choosing a great lender. Be sure to pay attention to their customer service — both in terms of reviews and your own experience. It’s vital to have open and quick communication if you want to buy a home.
Second, check out the various home buyer programs you might qualify for. If you know you want a USDA mortgage with a low down payment, for instance, be sure the lender will offer it and understands the various details the deal requires.
Pay attention to whether the lender offers an online service, in-person help, or both. Depending on your comfort level, you may find that one or the other is best for you. If you prefer in-person help, you should choose a lender with a local office in your area.
Your buyer’s agent can help you pinpoint lenders that fit your needs.
5 Best Mortgage Companies in Michigan
If you’re curious what lenders stand out above the rest, you’re not alone. Finding great lenders in Michigan takes some research and digging. To get you started, here are five of the top-rated companies in the state.
If you’re a first-time home buyer, Prime Lending may be a great choice for your mortgage. They offer up to $2,000 in closing cost credits if you qualify, and you only need a 600 credit score for their FHA loans. Otherwise, you’ll need a credit rating of at least 620 and a down payment of at least 3%.
Keep in mind that this lender charges expensive lender fees that near $1,000, although the credits can help offset this. The lender doesn’t list average interest rates online, so you must start an application to see what you qualify for.
If you want a great online lending experience, try LoanDepot. They offer online rate comparisons so you can see how they stack up head-to-head against other lenders. They have 180 locations around the country for face-to-face lending.
This lender charges a lot of fees, however, so the rates may not be as competitive as other options. You’ll need a minimum credit score of 620 and a 3.5% minimum down payment for a mortgage here. They offer digital income, asset, and employment verification to streamline the mortgage process. In 2019, LoanDepot is advertising a 4.324% APR.
The largest lender in Michigan based on loan volume is Quicken Loans, and there are a lot of benefits to working with them. They’ll tell you the loan amount you qualify for in just a few minutes, and they handle the most FHA loans in the country.
You’ll need a minimum 620 credit score and at least 3% for a down payment. They have an online process available, along with mortgage advisors if you want an actual human to talk to. They can verify employment and income for most customers, and offer loan terms between eight and 30 years.
If you love the online experience, you can also use Rocket Mortgage by Quicken Loans, which gives you a lot of digital benefits with the same Quicken customer service.
New American Funding
For maximum underwriting flexibility, look at New American Funding. They review all applications manually, giving you a chance to explain specific circumstances. If you have nontraditional credit, this is a great choice. You can count income from multiple sources as well, and you can access all of your information online.
You will need a down payment of at least 3%, although that may change if you choose a specialized mortgage. They offer fixed, adjustable, FHA, VA, and USDA loans. The average 2019 APR for a 30-year fixed mortgage is 3.839%.
For those with a military service background, you want to look at Veterans United. They focus primarily on VA loans, although they also offer fixed, adjustable, FHA, and USDA mortgages. The credit scores can be less stringent than other lenders.
You can find loan options with as little as 0% down, and they have an online application and 24/7 customer service. The only thing to watch out for is that the fees can vary significantly from borrower to borrower, so compare the offer you receive.
Have the Right People in Your Corner
As you move through buying a home, you want to have the right professionals on your side. This means choosing a great lender, but it also means having a buyer’s agent that can help you find the right home at the right price.
With a Clever Partner Agent, you get a full-service buying experience from a top-rated agent in your area. That’s not all — you may get a $1,000 rebate toward closing costs on purchases over $150,000.
If you’re ready to get started, we’re here to help. Let us set you up with a high-quality agent in your area today.