Best Mortgage Companies for First Time Home Buyers

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What mortgage is best for first-time buyers or who has the best home loan rate for first time buyers? According to the survey online, these are some of the popular questions asked by first-time buyers looking for the best mortgage company. In this article, find out the best mortgage companies for first-time home buyers.

Best Mortgage Companies for First Time Home Buyers

It is usually challenging when it comes to buying a home, especially for first-time home buyers. This is due to the equity possessed by a former home sale. Also, the down payments are sometimes small compared to people who have already purchased and sold homes.

Most first-time buyers are often young people, therefore, have little credit history. This can eventually result in a low credit score and increase your interest rate on the mortgage. There are lots of mortgage companies offering home loans to eligible applicants to purchase their dream homes. But when it comes to choosing the best mortgage companies for first-time home buyers from a wide range of lists. Some of the factors you need to look at include

  • Credit score
  • Down payment
  • Rate

You need a home loan first-time home buyer lender that offers you a good rate, a low credit score minimum, and low-down payment options.

Best Mortgage Companies for First Time Home Buyers

Here is a table that shows the best mortgage companies for first-time home buyers:

Mortgage CompanyMin. credit scoreMin down payment
NBKC6203%
Northpointe Bank6205%
Sebonic Financial6205%
Flagstar Bank6203%
Wells Fargo6203%
PNC Bank6203%
Veterans United6200%
Guild Mortgage6203%
TRUIST6203%
PrimeLending6203%

Tips for Comparing Lenders for First-time Homebuyers

Just like I mentioned earlier, it’s the best option to compare lenders as a first time buyers. Credit scores and down payment are one of the biggest problems faced by first-time homebuyers. Therefore, it’s often good to compare lenders. When comparing lenders what you need to look for is a lender that offers low credit score minimum requirements and also low-down payment options.

Aside from the various type of mortgage loans offered to first-time buyers like FHA loans, many lenders offer exclusive loans that are best for first-time buyers. Usually, if you are looking for the best lender, it’s good to start at your own financial institution. You can contact them and acquire their loan options that meet your needs.

How to Choose a Mortgage Lender as a First-time Homebuyer

The best way to choose a mortgage lender as a first-time homebuyer is to shop around and make deep inquiries about their service. In choosing a mortgage lender you need to compare the rate and loan options to choose the one that best suits your need. When you shop around, you tend to receive varieties of preapprovals and official loan estimates from lenders.

FAQs

How do I compare mortgage lenders?

First of all, get an idea of the type of mortgage such as 30-year fixed rate mortgage, FHA mortgage, VA mortgage, and others. Then, you can shop around multiple lenders and compare them using factors such as down payment, rate, and minimum credit score requirements.  

How much do I need to save for a down payment?

The calculation around making a down payment is that the larger the down payment you make the less you’ll have to finance when you successfully purchase your dream home. While comparing multiple lenders always check the minimum down payment required.

Can I get help making a down payment?

Yes, as a first-time home buyer, you might be eligible for down payment assistance as well as other various benefits that come.

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