Best Mortgage Lenders for First Time Buyers

Ready to dive right in and buy your first home? After finding the ideal home for you, you need a mortgage lender that offers the best services for you as a first-time buyer. We have reviewed the five best mortgage lenders below;

1. Bank of America

How would you like numerous mortgage products to choose from with incredibly low down payment solutions as a first-time homebuyer? Bank of America offers this and refinance options with favorable rates.

They offer their services in all 50 states and are a top-rated mortgage lender among consumers. You will need to have a credit score below 580 and pay a minimum down payment of 3.5%, depending on your product.

Loan types you can get from the Bank of America include Jumbo, Conventional, Interest Only, FHA, and VA. For any loans below $548,250, you will pay a down payment of 3%, and you won’t need any mortgage insurance to qualify.

To help first-time buyers qualify for a mortgage, they accept non-traditional credit reports, cell phone payments, rent, utility bills, or account history. In addition, you can sign up for their Preferred Rewards Program to be eligible for a customer discount.

2. New American Funding

These mortgage lenders have different mortgage options for first-time buyers with budget constraints. They offer conventional and proprietary government-backed mortgages with refinancing options. Unfortunately, their mortgage products do not extend to residents of New York or Hawaii.

It is the best mortgage lending company for self-employed individuals. They allow their borrowers to use their bank statements as proof of income rather than asking for tax returns or W-2s, which most self-employed individuals don’t have.

Their closing process depends on the client and their preferred mortgage. Therefore, you can either start with pre-approval or pre-qualification. With pre-approval, the underwriters will review your assets and income to determine your qualification. On the other hand, pre-qualification does not include the lender verifying your income details.

3. PNC Mortgage

If you are struggling to raise money for the down payment, you will appreciate PNC mortgage lenders. A PNC cash grant for low to moderate-income earners will go a long way to help them save. In addition, they offer various mortgage products and flexible terms, making them a flexible lender for first-time homebuyers.

They request a 3% down payment, but you get to pay less if you are lucky to qualify for the cash grant. Among the loan types they offer are Jumbo, USDA, Conventional, FHA, and VA.

They are a perfect lender for anyone with low or moderate income or in the medical profession looking to buy their first home with no mortgage insurance and little down payment.

Their various mortgage products are likely to meet the needs of most borrowers. Besides standard conventional loans, they also offer government-backed mortgages and other options that lenders avoid offering.

4. Citi Mortgage

They deliver all the products and services you expect from a diverse mortgage lender alongside some extras. Citi Mortgage offers different products which can be customized to meet the needs of the borrower.

You will need to have a credit score of between 580 and 620 and be ready to make a 3% minimum down payment for the total house purchase price. Some of the loan types they offer include Jumbo, Conventional, VA, and FHA.

If you are a Citibank account holder, you might enjoy a considerable discount on your mortgage. Their interest rate is reduced, and their pre-approval service is free. In addition, they have an in-house department that focuses on helping first-time borrowers who are likely struggling with financial problems.

5. Wells Fargo Mortgage

It is among the popular mortgage lenders within the state that offers refinancing products, home equity and offers different mortgage options. As a first-time buyer, you will enjoy the no income requirement as well as unlimited access to FHA loans.

They request a minimum down payment of 3% and a minimum credit score of 580. You can choose from the following loan types; Jumbo, Conventional, USDA, FHA, and VA. It is the best pick for anyone with low income and needs flexible credit requirements.

Wells Fargo offers competitive rates, especially when it comes to borrowers with low credit. Besides refinance loan options, they also offer Home Equity Lines of Credit with fixed and variable terms.

An additional advantage is the excellent education tutorials they offer through their website. They have put up videos and articles to guide first-time buyers on everything they need to know about mortgages.

Every mortgage lender offers different products, loan types, and rates. Therefore, you should consider getting quotes from the two or three best mortgage lenders and compare. Each lender we have reviewed above is suitable for a first-time homebuyer; thus, feel free to choose any that matches your needs. Congratulations on taking milestones to own your first home.