After years of economic pain, the U.S. housing market has rebounded better than most analysts expected. Interest rates have stayed low and are not expected to rise in the near future.
That's great news for home buyers. An investment in a home not only makes economic sense, it's also relatively affordable right now. Despite the optimistic outlook, there's a lot of stress when it comes to financing your home.
Low interest rates are not the only factor you need to consider when looking for a reliable lender for your mortgage. Home buyers should try to find an established company with experts in financial services and mortgages.
Finding the right mortgage company can make all the difference. The first thing you need to understand is that there are many types of lenders. You can borrow money for your home from a national or local bank, credit unions, or correspondent lenders.
Once you decide on the lender, it's time to get pre-approved for the home loan. After you are pre-approved for a mortgage you can sit down with your experienced realtorand set parameters for your home purchase.
Here are the best mortgage companies in Richmond, Virginia.
Liberty Mortgage was established in 1997 and primarily serves the Richmond area and promises local expertise. It is one of the last independent mortgage brokers in the city.
It can offer its customers loan options at great prices because it has relationships with over a dozen different lending sources. It does not list its interest rates on its website. But there is a form you can fill out to find out about its various loan options and rates.
MAK Financial Group
MAK Financial Group describes itself as a boutique mortgage company serving Virginia. It is headquartered in Richmond and the company notes that its growth can be attributed to referrals from local clients.
The company works with state and national government programs providing USDA loans, VA loans, and FHA loans. It also provides conventional loans for as little as a 3% down payment. However, they require private mortgage insurance until the loan value reaches at least 78%.
Its pre-approval requirements are quite stringent. You need to provide a full credit report. It must be a tri-merge report giving all three scores from all three reporting bureaus. You must also provide recent pay stubs and W2s for the past two years.
Lastly, you need to provide bank statements as a verification of cash to close. That means you must show that you have sufficient funds to cover your down payment, closing costs, taxes, and homeowners insurance escrows.
Dominion Capital Mortgage
This is a locally owned and operated business. The company works with many investors, which allows it to get its customers the best terms on all types of loan programs.
Dominion Capital Mortgage provides fixed-term loans from eight to 30 years. It also has conventional, jumbo, FHA, VA, and USDA loans.
If you live in Richmond, you've probably seen an event with Chesapeake Bank employees. It takes pride in being part of the community. The bank is well-established, to put it mildly. It started off as Lancaster National Bank in 1900.
In 2018, American Banker Magazine ranked Chesapeake Bank on its list of the top 200 community banks. It offers a variety of land loans, home construction loans, jumbo loans, and affordable home loans with products like the FHA, USDA, and VA loans.
Richmond Mortgage is an asset-based lender which has funded about $100 million in investment properties, including single-family homes and commercial properties in Virginia and the region.
The company provides fast funding for loans secured only by your real property. It provides loans for fix-and-flips, renovations, and new constructions.
Richmond Mortgage's maximum loan-to-value ratio (LTV) is 70% of the after repair value of a single-family home. This may vary for other types of properties. The APR is between 8% and 12.5% and borrowers have 9 to 12 months to pay off the loan.
Save Money with Clever!
Home buyers have a variety of choices when it comes to financing their home purchases. Working with the right lender is important. But finding one can be difficult. That's why you should speak to a Clever Partner Agentwhen you start the home buying process.
They are well-connected in Richmond's financial and real estate communities and know the reputations of lenders. Plus, they can help you save money with a Home Buyer Rebate.
Clever partners with top real estate agents from major companies like Keller Williams, Century 21, and RE/MAX. Clever Partner Agents are all full-service and can help you find additional cost-saving opportunities. They can also help you evaluate your financing options and are knowledgeable about state and federal grants and programs for home buyers.