A mortgage is a loan provided by a bank or a financial organization to home-buyers. While you are paying back the loan, the bank keeps your house as collateral. That means, if you are unable to pay back the loan, the bank has legal rights to take possession of your house.
This process can seem stressful for a first-time home buyer. And often it is complicated as the bank does not provide counseling to the first time home buyers. But I have listed a few banks and financial organizations in America that are known for their customer service and low-interest rates.
Here are the 5 best mortgage lenders for the first time home buyers in 2019.
1) Quicken Loans
Quicken Loans is America’s one of the most reliable mortgage lenders for first time home buyers. Quicken Loans has devised an easy 9 step process that first-time home buyers have to go through to take the first step in your new home. Once Quicken Loans approves you as a legit home buyer, they will guide you from finding a home to closing the deal.
2) Bank of America
With Bank of America‘s digital mortgage experience, you can pre-qualify or apply for a loan without any hassles. You can step into your new home with Bank of America’s 3 step process. In the first step, they find your capacity to borrow and return the amount with interest. Next, you have to search for your new home by visiting their Real Estate Center. This entire process is online. Lastly, you have to fill the final application for the mortgage.
3) Navy Federal
Navy Federal Credit Union has been there in the financial sector since 1933. It is one of America’s oldest and the most trusted mortgage lenders for the first time home buyers. Let’s get to the important part. Before sanctioning mortgage loan, Navy Federal focuses on three factors. They are 1) Character of the candidate 2) Capacity to repay the loan and 3) Capital. With these 3 criteria satisfied, you can get a mortgage loan from Navy Federal.?
First-time buyers rave about their good experience with Chase. Their executives are very friendly, knowledgeable about the home buying process and have a great attitude. Initially, you will be chatting with the loan officer for about half an hour. The loan officer takes down some notes and prints some copies of your documents. But, Chase offers a low loan amount compared to other banks. So, they may be suitable for you if you are eying to buy a smaller home.
5) New American
New American Funding provides a pre-approved mortgage to first time home buyers. They are direct lenders. Along with pre-approval, they also take care of financing and helping you carry out other procedures of home buying. Their executives are excellent communicators and they make the process of documentation very easy and hassle-free for the candidate.
To pay back the loan, the bank collects a premium from you each month until the loan has completely paid off along with the interest. Keep in mind that some banks also ask for a downpayment. Which means you will have to pay a fixed amount(20-25 percent of the total mortgage amount) upfront at the time of buying the home. So, be financially prepared before deciding to apply for a mortgage loan.