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2020 Mortgage Lender Rankings & How To Choose A Lender

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Looking for a lender? Start here

If you’re thinking about buying a new home or refinancing, you’re probably wondering which mortgage companies offer the best options.

Thanks to the recently released J.D. Power 2020 U.S. Primary Mortgage Origination Satisfaction Study, you’ll have a strong jumping-off point for your search. 

With a mix of tech-first lenders and major banks earning the highest ratings, there are a variety of options to choose from.

But don’t limit your search. Just because a mortgage company gets good reviews, doesn’t mean it’s the best company for you.

You still need to compare rates and fees from at least 3-5 lenders to make sure you’re getting the best deal in addition to great customer service.

Get matched with a lender (Nov 22nd, 2020)

The top-rated mortgage lender for 2020 is… 

At the top of J.D. Power’s list are some of the nation’s mega lenders:

  1. Rocket Mortgage
  2. Bank of America (tied for second)
  3. Chase (tied for second)
  4. Citi
  5. U.S. Bank
  6. loanDepot

Rocket Mortgage by Quicken Loans took home J.D. Power’s top rating for the 11th year in a row.

Rocket and its parent company Quicken receive high marks from borrowers for their quick and easy online application and customizable loan features.

In addition to being a leading lender for FHA and VA loans, Rocket Mortgage says it can provide a pre-approval decision in eight minutes. 

But Rocket and Quicken’s winning track record doesn’t mean this is the best mortgage lender for everyone.

To find the right mortgage lender for you, you need to do some homework.

Start by figuring out what type of loan you need. Then, compare rates and fees from a few different lenders that seem promising.

You might be surprised at which one can offer you the best deal.


Don’t miss the top mortgage lenders for veterans and service members

J.D. Power’s list primarily includes lenders that work with a broad range of consumers.

But if you look at the fine print, you can see that military service members and veterans have additional options.

In fact, the top military lenders consistently rank even higher than Quicken Loans for customer satisfaction. Only, they don’t show up at the top of the list because they’re not available to most borrowers.

This year’s top-rated mortgage lenders for military service members and veterans are:

  1. USAA
  2. Veterans United
  3. Navy Federal Credit Union

These lenders specialize in VA loans, which allow zero down payment and often have below-market interest rates for eligible service members.

Looking for a veteran-focused lender can also be a good idea if you have a rocky credit history or higher debts, and you want to work with a lender who can offer additional counseling or assistance to help you qualify for a mortgage.

Many military lenders (though not all) have special programs to help VA-eligible borrowers become homeowners.

If you plan to apply for a VA loan, you can compare the top VA lenders and request quotes from several to see who offers the most competitive rates and terms.

Get matched with a VA loan lender (Nov 22nd, 2020)

How to choose a mortgage lender

When thinking about how to find a mortgage lender, ratings can be a great place to start. If millions of other homeowners are singing a lender’s praises, it’s probably worth checking out. 

But rankings are just that — a place to start.

The right lender for you might not be one of the national banks or even appear on a best-of list.

You might be better off looking at local banks or credit unions that are hands-on throughout the loan process or who will work with you to help you qualify for a mortgage.

That’s especially true if you think you’ll have trouble qualifying for a home loan — maybe because you have a lower credit score, high debts, or non-traditional income.

Whatever the case, it’s crucial to find a lender that knows how to work with borrowers like you and can offer low rates for your situation.

Think about your unique needs

There are a number of factors that influence whether a lender will approve you for a loan.

Sometimes a smaller company has more bandwidth to help borrowers who have low credit scores or a limited credit history. 

Lenders may also specialize in a particular type of loan or may work primarily with a certain type of borrower.

  • Some are known for doing jumbo mortgages, which exceed the loan amount guaranteed by the government
  • Others work with bad credit or self-employed borrowers who might have a hard time qualifying for a mainstream loan
  • Still others do a large number of FHA, VA, or USDA loans and can offer expertise in those areas

Get matched with a mortgage lender (Nov 22nd, 2020)

What’s your borrower profile?

Understanding what your profile as a borrower looks like may help you choose the right lender for your circumstances. 

Here are some of the biggest factors mortgage lenders look at:

  • Credit score: The higher your score, the more home loan options you’ll have. However, some loan programs accept credit scores in the 500s and low 600s, and your score is only one part of the evaluation process
  • Debts: Lenders calculate all of your other debts plus your potential mortgage payment against your monthly income (this is known as your debt-to-income ratio) to determine how much you can afford
  • Income: Your income can also affect the types of loan programs you qualify for. USDA loans, for example, cap income at 15% above the local median. Income might also determine whether you qualify for down payment assistance programs, and not all lenders allow borrowers to use those toward their loans
  • Down payment: If you can put down 20% or more, you can avoid paying private mortgage insurance (PMI). But many lenders offer loans with as little as 3% down. FHA loans require just 3.5%, and VA and USDA loans allow 0% down

Before requesting quotes from any lenders, compile a short list of mortgage companies that seem like they’d be a good fit. Then research whether they offer the type of loan you’re looking for.

Many lenders will list the loan products they provide on their websites, and some will highlight special programs for first-time home borrowers or low credit applicants.

If you’re still not sure which lenders are best, you can ask your real estate agent for recommendations.

You might also consider hiring a mortgage broker. A broker identifies loans that work with your circumstances, as well as lenders that offer those products.

Verify your mortgage eligibility (Nov 22nd, 2020)

How to compare mortgage rates and fees

It’s a good idea to request mortgage quotes from several lenders so you can compare them side by side.

While interest rates will factor into your decision, there are a number of other aspects to consider, including: 

  • Closing costs: How much can you expect to pay in fees, appraisals, origination costs, and other expenses? 
  • Loan products: Do they offer mortgage options that suit what you’re looking for and what you can afford in terms of a down payment? 
  • Servicing: Does the lender service your loan after it closes — meaning they handle account management and payments — or do they sell it to another company? 
  • Special programs: Does the lender allow down payment assistance or do they offer loans designed to help first-time home buyers? 
  • Application process: Is the application process 100% online or do you work with a loan officer from approval to closing? 

As you get a sense of how different mortgage companies interact with borrowers, and the terms and products they offer, it will become easier to identify the lender that best suits your needs. 

A look back at the 2020 mortgage market 

Historically low interest rates sent home sales soaring to a 14-year high this year, and refinances are up 200%.

Many homeowners and buyers rushed to lock in rates at 3% or less while they lasted, which proved to be a smart move, as rates increased following President-elect Joe Biden’s win.

The Federal Reserve has said rates will remain low until 2023, though. So, you get can still get a great interest rate if you haven’t bought or refinanced yet.

Low rates caused snags in the mortgage process

Despite skyrocketing sales, the mortgage industry has had its fair share of issues in 2020.

J.D. Power reported that the spike in mortgage demand led to increased loan processing times, as well as problems with self-service application options.

The organization also noted that lenders struggled to cope with the influx in applications and increased current borrower inquiries, particularly with so many employees forced to work from home. 

What to expect from mortgage lenders in 2021

Lenders will likely try to course-correct moving into 2021 in order to remain competitive, according to J.D. Power.

If you’re concerned about hitting snags with online application programs, or you’re hoping to move quickly on your loan application, contact the lenders you’re considering and ask about their turnaround times for loan decisions.

You can also ask about their average time to close on a loan, as well as their customer support options for their online tools.

Getting a sense of how they handle potential issues can help you feel more confident when selecting a lender. 

Verify your new rate (Nov 22nd, 2020)

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Subprime Auto Loans: The Basics You Should Know

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Before you dive head-first into the world of subprime auto financing, it’s a good idea to know what you’re getting into and what to expect. We’re covering the common requirements of subprime lenders and the items you need to prove that you’re ready for a car loan.

What is a Subprime Lender?

Subprime lenders are also called bad credit auto lenders. They specialize in assisting borrowers with poor credit, those who’ve gone through bankruptcy, and those in other challenging credit circumstances. Subprime can also refer to the credit rating as well, typically defined as a credit score around 501 to 600, or those with a credit score below 660. Borrowers with credit in this credit score range are typically referred to as bad credit borrowers and may need the help of subprime lenders to get an auto loan approval.

Getting into a subprime car loan means finding a dealership that’s signed up with these lenders. Many dealerships are signed up with third-party lenders that can finance borrowers with lower credit scores. The finance manager at these dealerships acts as the middleman between you and the lender. Locations that are signed up with subprime lenders are called special finance dealerships.

Subprime lenders differ from traditional auto lenders (think banks, credit unions, online lenders, and some automaker’s captive lenders) in that a poor credit score isn’t enough to get turned down for financing. They know that your credit isn’t going to be perfect when you’re seeking a subprime car loan. So, they look at your credit history as a whole, your income, living situation, and many other factors to determine your creditworthiness and eligibility for vehicle financing.

Requirements of Subprime Auto Loans

Since every lender varies in their specific requirements, we can’t provide an all-encompassing list of requirements – but we can provide some of the more common ones you’re likely to encounter. At Auto Credit Express, we’ve created a network of dealerships that are signed up with subprime lenders. Thanks to our dealer network, we know the commonly requested documents you need to prepare for a trip to the dealership.

Subprime Car Loans: The Basics You Should KnowCommon requirements of subprime financing typically include:

  • Income – To qualify for any car loan, you need income. Subprime lenders usually require around you to have $1,500 to $2,500 of minimum monthly income (before taxes). Prove your income with 30 days of computer-generated check stubs that show year-to-date income. This requirement typically needs to be met by a single source, but some subprime lenders may allow multiple sources of income to meet this requirement in certain circumstances.
  • Residency – Subprime lenders require proof of permanent residence. This can be proven with a recent utility bill in your name, or a recent bank statement.
  • Down payment – Having bad credit almost always means needing a down payment to qualify, and subprime lenders typically require at least $1,000 or 10% of the vehicle’s selling price.
  • Working phone – Subprime lenders may need to contact you, so they require a working contract cell phone or landline phone. Proven with a recent phone bill in your name.
  • Valid driver’s license – To drive the car off the lot, you need a valid driver’s license. This also proves your identity. Your license can’t be revoked, expired, or suspended.
  • Personal references – This isn’t a requirement to qualify for financing, but it’s likely the lender will ask you for a list of references. Typically, they ask for five to eight references with complete contact information. The only requirement with references is that they don’t share your address.

Remember that these are only general guidelines for what to expect from a subprime lender, but it’s definitely a good place to start!

Your personal situation may require the need for more or different documents to qualify you for auto financing. For example, if you had a bankruptcy that was recently discharged, then you may need your discharge papers to prove you’re in the clear. Another common situation is if your income isn’t W-2 and you don’t receive check stubs. If you’re a 1099 worker, then you’re likely to need two to three years of tax returns to prove you have the income for an auto loan.

Letting the special finance manager know what your situation is can make the process easier, and help move it forward without too many snags.

Finding a Special Finance Dealership

Subprime lenders are third-party, so locating one without finding a special finance dealership isn’t likely to be easy, but we want to help. Let us get you connected with a dealership that’s signed up with subprime lenders in your area.

Here at Auto Credit Express, we’ve created a nationwide network of dealers that are ready to assist borrowers in all sorts of tough credit situations. Get started right now by filling out our free auto loan request form. There’s never an obligation to buy once you get matched to a dealer, it’s completely free, and we do all the hard work of looking for the bad credit resources for you.

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How can I refinance my mortgage with bad credit?

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If you have poor credit but want to take advantage of the current low interest rates and refinance your mortgage, make sure first it makes good financial sense, and don’t forget to factor in closing costs and other fees. (iStock)

Bad credit happens. This may be especially true for the thousands of people out of work due to the coronavirus pandemic. Even so, you can refinance your mortgage with bad credit. It may be more challenging, but it’s possible.

The coronavirus pushed interest rates to record lows. Such low rates are the driving force behind the surge in mortgage refinances — up 89.54% from last quarter and up 297.3% from just one year ago, according to US Mortgage Originations.

Take a look at your options and your limitations, and visit Credible to compare rates from multiple lenders all in one place.

How to refinance your mortgage with bad credit

If you have bad credit, you may qualify for private-sector programs, options backed by the federal government, or you can try co-signing with a stronger borrower. If you’re considering using a cosigner or want to see if you’re eligible for a refinance on your own, Credible can help. Click here to learn more about refinancing your mortgage and whether you’d be approved today.

Here are four mortgage refinance options for potential borrowers with bad credit.

  1. FHA Streamline Refinance program
  2. FHA rate-and-term refinance
  3. VA refinance 
  4. Portfolio loan

1. FHA Streamline Refinance program

If you have an existing FHA loan, you may qualify for the FHA Streamline Refinance program, which can permanently lower your monthly payments. Most lenders won’t check your credit or demand an appraisal because you already have an FHA loan. You may qualify for current refinance rates, but you’ll likely have to show you’ve made six consecutive monthly payments on-time, in-full.

2. FHA rate-and-term refinance

A rate-and-term refinance is for anyone who already has an FHA loan. It’s meant to help you refinance your current mortgage and reduce monthly payments. A new home appraisal and credit check are part of the application process, and like the Streamline Refinance program, you must show six months of consecutive on-time payments, paid in full.

3. VA refinance

If you currently have a VA loan, you can refinance with the Interest Rate Reduction Refinance Loan (IRRRL). Generally, lenders won’t require a credit check or home appraisal to qualify. The VA allows you to refinance up to 100% of the property’s value, but there is an upfront funding fee that may be added to the loan amount.

4. Portfolio loan

A portfolio loan is originated and retained by your mortgage lender. Because your mortgage lender is 100% responsible if you default on your loan, your credit history and finances will be reviewed. There are likely closing costs and other fees due at the time of closing or added into your loan payment.

HOW TO DECIDE IF YOU SHOULD REFINANCE YOUR MORTGAGE 

What are today’s mortgage rates?

The COVID-19 pandemic pushed interest rates lower than they have been in many years. That’s why it’s such a good time to refinance your mortgage — even if you have bad credit.

These are current mortgage rates, according to Freddie Mac:

  • 30-Year Fixed-Rate Mortgage (FRM): 2.79%
  • 15-Year FRM: 2.23%
  • 5/1-Year Adjustable Rate Mortgage (ARM): 3.12%

Mortgage interest rates fluctuate with supply and demand in the secondary market. If the supply of money goes up and the demand for money goes down, interest rates will go down as well — exactly what has happened due to COVID. If you want to take advantage of today’s low mortgage rates, make sure you use Credible’s free online tools to refinance and start saving today.

The Federal Reserve doesn’t set mortgage rates, but it can influence rates. This past August, Federal Reserve Chair Jerome H. Powell stated that interest rates would likely stay low for some time to recover from the recession the COVID-19 pandemic caused.

Compared to the current rate of 2.65% for a 30-year FRM, on January 2, 2020, the 30-year mortgage rate was 3.72%, and on December 26, 2019, the rate was 3.74%. On the same date in 2018, the rate was 4.55%. Even one percentage point can make a big difference in your monthly payments.

If you have bad credit, but you want to take advantage of the current low-interest rates, use an ​online mortgage refinance calculator to determine new monthly costs. Credible can also help you crunch the numbers and determine what your monthly payments and total costs would be.

REFINANCING YOUR MORTGAGE? 5 QUESTIONS YOU SHOULD ASK FIRST

Should I boost my credit score first?

Banks, credit unions, and many online lenders offer better interest rates to people with good credit. Although the required credit score to qualify for a refinance varies from lender to lender, most mortgage loans require a minimum credit score of 620, according to Experian.

To get the best rates (and pay less interest over the term of your loan), it makes sense to boost your credit score before applying for a mortgage refinance. Accordingly, interested borrowers should visit Credible​ to get prequalified without impacting their credit score.

THE MORTGAGE REFINANCE WINDOW COULD END SOON: WHY YOU SHOULD ACT NOW

How to increase your credit score

  1. Make all your payments on time. Payment history accounts for a large chunk of your credit score—35%. 
  2. Pay down debt. Paying down all credit card balances to less than 30% can improve your credit utilization ratio (the percentage of credit you’re using compared to your available credit) and boost your credit.
  3. Don’t close old credit accounts. Even if you’re not using an old credit card, keep it open to improve your credit history.
  4. Don’t open too many accounts. Lender’s inquiries into your credit can hurt your score, and carrying too much debt is never a good idea. 
  5. Keep a close eye on your credit score. Checking your score doesn’t hurt your credit. It can also give you an idea of where you stand when applying for a mortgage refinance
  6. Make sure your credit report is error-free. When you look at your credit report and find the information you’re not sure about, contact the three major credit bureaus and report your findings. 

If you’re thinking of refinancing, consider using Credible. You can ​use Credible’s free online tool​ to easily compare multiple lenders and see prequalified rates in as little as three minutes.

REFINANCING YOUR MORTGAGE? DON’T MAKE THIS MISTAKE

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Keco Capital Offers Easy Lending Plans To Revive Your Real Estate Business

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Real Estate Lending Program

Real Estate Lending Program

As a trustworthy financial service, Keco Capital is committed to support real estate industry with different lending products

Keco Capital logo

Keco Capital logo

As a trustworthy financial service, Keco Capital is committed to support real estate industry with different lending products

Honolulu, HI, Jan. 15, 2021 (GLOBE NEWSWIRE) — No one can understand the dilemmas of a real estate investor unless they have gone through similar experiences. Perhaps, that is why, a private lending service designed by investors for the investors is all set to rule the roost. Keco Capital, a name synonymous to trustworthy and convenient financial service, offers a comprehensive range of lending plans for start-ups and those trying to rise from the ashes again in the real estate sector.

No matter what business phase you are in, Keco Capital has a lending plan best-suited for your needs.  

Lending service designed for withstanding uncertainties 

Uncertainties are the most crucial realities of any real estate business. A realtor requires a lot of financial support to keep up with the challenges of construction projects and those dedicated to renting. As mentioned by their spokesperson, some of the noteworthy features of Keco Capital lending products are explained as under:

  • A lending service working state-wide: This private lending service is designed to reach all the real estate agencies functional across the State. With the branch offices spread throughout the State, it ensures that the realtors are never away from the financial help they need.
  • No prepayment charges: It is offering loans on very easy terms. The company encourages the people to be free from liability as soon as they are capable. Thus, the company has no prepayment penalty clause. While taking a loan from the private lender like Keco Capital,  the borrower has to worry only about paying the interest amount. Unnecessary charges will not be there to boggle them.
  • No construction holdback interest payment: A project holdback is a financial liability anyway. Worsening this situation with the additional interest levying can be very taxing for a realtor. This situation finds a better solution with Keco Capital lending plans. 

Anyone can receive financial help at Keco Capital, including those who have declared bankruptcy or have a bad credit history.

Types of lending products

The company, with the help of its able advisories, has brought forth a bouquet of lending products for the borrowers. These lending products are the direct outcome of the experts’ understanding of various kinds of financial glitches, usually faced by any realtor. Types of lending products available with this private lending company are:

  • Rehab Loan (No interest in holdback)

It is an 85/85 LTV/LTC Program. It covers almost 100% of the rehab cost, up to 70% of the ARV. Other common features are no prepayment penalty and loan extensions. The loan available for one year offers pleasant convenience and is a loan purely for business purposes.

  • Ground-Up construction Program

You can get financial assistance amounting to 85% of the total cost of the project. Up to 100% of the construction cost can be financed under this plan, provided it does not exceed 70% of ARV. 

Those wanting to develop ready-to-rent properties can get financial help under this loan plan. It is a 75% LTC/LTV lending program that offers 24 months of the loan term. It does attract a 6-month prepayment penalty, but it is made up by providing loan extension of 12 months.

Reach to Keco Capital representatives right away through these channels to find more about the private lending products:

Ph No: (425) 526-3007

Email: info@kecocapital.com

Address: 900 N. Nimitz Hwy #305

Honolulu, HI 96817

This news has been published for the above source. Keco Capital [ID=16271]

Disclaimer: The information does not constitute advice or an offer to buy. Any purchase made from this story is made at your own risk. Consult an expert advisor/health professional before any such purchase. Any purchase made from this link is subject to the final terms and conditions of the website’s selling. The content publisher and its distribution partners do not take any responsibility directly or indirectly.  If you have any complaints or copyright issues related to this article, kindly contact the company this news is about.

 

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