The Best Online Mortgage Lenders: 2019 Forecast
Understanding key mortgage trends going into the New Year can help you find the best options.
With the likelihood of higher interest rates in 2019, it’s essential that you make the most educated choice about the mortgage options best tailored to your needs. This means turning to the companies and lenders that empower you to make educated choices and avoid costly mistakes. Here are 3 online lenders that place the power in your hands, allowing borrowers to easily compare rates and adding transparency to the process.
Lending Tree is an online mortgage marketplace that functions like travel and other online comparisons shopping sites by empowering you to compare multiple offers from a network that you wouldn’t have access to otherwise. This means that there’s no middle man telling you what is or isn’t right for you. In a matter of minutes, you clearly see all of your personalized options before making any decisions.
An added plus is that Lending Tree allows you to check lenders’ estimated fees, which can drastically vary from one lender to the next. This clear-cut transparency isn’t found anywhere else. Lending Tree is especially suited for borrowers with poor credit or unconventional income looking for flexible lenders.
The combination of variety and transparency is precisely why Lending Tree is your overall best overall bet for 2019.
J.G. Wentworth offers an extremely diversified menu of financial services. Unlike some online lenders, J.G. Wentworth’s mortgage rates are clearly listed, which means that what you see is what you get. When you click the “Get My Rate” button and answer a few questions you immediately receive a live quote that enables you to compare loan options. If you like what you see, you can lock rates for up to 60 days at no charge.
While good for variety, J.G. Wentworth requires better credit scores than other lenders. For example, a 700 FICO score is needed to qualify for a conventional loan and 620 as a minimum for some government-backed loans. For first-time buyers with good credit, J.G. Wentworth participates in first-time home buyer assistance programs in many states. Some of these programs provide grants that cover your down payment and closing costs, in addition to other benefits!
Quicken is the largest online mortgage lender in the country and boasts the highest customer satisfaction rating possible. With their flagship “Rocket Mortgage” process, your entire mortgage purchase is streamlined, from the initial vetting to your final payment, online from your phone or computer. This means that from anywhere and at anytime, you can connect with countless lenders offering fixed or adjustable-rate mortgages of up to $3 million.
If you want unlimited variety, convenience and highly-rated customer care at your fingertips, this is your first stop. To qualify for a loan with Quicken’s Rocket Mortgage, you’ll need a minimum personal credit score of 580 if applying for a FHA loan, 620 if applying for a conventional loan and 700 if applying for a jumbo loan. You’ll also need to be ready with an application deposit of $400–$750, that will be subtracted from your final closing costs.
Final thoughts: For the past decade, interest rates have been at a historic low to encourage buyers. In the past year, this period of low rates came to an end with interest rates rising almost a full point. While this has discouraged some, we’re simply seeing a return to “normal” levels. This will continue, with the Fed reportedly set on more hikes in 2019 to reach a “neutral rate”. Even if this is done gradually, most experts agree that you’ll be borrowing and refinancing at higher rates in 2019 than you would now.
All of this means you need to be aware of your options going forward and understand exactly where you can find the best, most personalized rates.