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Economic forces, including an improving U.S labor market and faster economic growth, are conspiring to push mortgage rates higher every year. The Federal Reserve is likely to raise short term interest rates in the summer, which in turn signals for the rest of the market for rates go higher. Suggestions to help you move quickly through the mortgage process approval and get the best mortgage lender include the following:
- Mind your credit score
- Visit your lender before you hit the open houses
- Don’t make any changes to your financial picture
- If you are self- employed, expect to jump through more hoops
- Organize your financial paper work and keep it up to date
- Call your Insurance company
Minding Your Credit Score
There are no quick fixes or shortcuts to improve your credit score yet it plays a vital role while shopping for a mortgage. Your credit score will play a major role in determining the rate that you get your mortgage. Before you apply for a mortgage, make sure that your credit scores are accurate and up to date.
Visit Your Lender Before You Hit The Open Houses
Create a game plan that makes sense for your budget. It pays to talk to a lender about what you you can afford and qualify for before you fall in love with a home outside your price range.
“It is really important from a budget standpoint to be shopping in the right price range”, Meronk says.
Don’t Make any Changes to your financial picture
Once you have gone through the pre-approval meeting with a lender or multiple lenders, you should have much clearer picture of your financial health and ability to borrow money for a mortgage. Working with a qualified financial professional, you should be able to make any changes that will improve your qualifications to borrow. However, take precaution when it comes to changing your financial picture. If you make major changes to your credit, debt, or assets after pre-approval, but before securing a loan, you could jeopardize your chances of getting a mortgage.
Hoops of a self-employed searching for a mortgage
Getting a mortgage when you are self-employed is second to impossible because you do not have that job security that most lenders go for. It is a hard task but determination, it pays off because, once you prove your self worth to tue lenders by providing proof that you can repay, they will automatically give it to you. So what matters here is, the confidence and the trust that you will display during your pre-approval.
Organize Your Financial Paperwork and Keep it Up to date
Lenders require paperwork to verify every facet of your financial life: income debts, assets and more. The lenders will require the following so keep them available before starting the journey of searching for the best mortgage lender:
- W-2 forms from previous two years, if you collect a paycheck.
- Profit and loss statements or 1099 forms, if you own a business.
- Recent paycheck stubs.
- Most recent federal tax return, and possibly the last two tax returns.
- A complete list of your debts, such as credit cards, student loans, car loans and child support payments, along with minimum monthly payment and balances.
- List of assets, including bank statements, mutual fund statements, real estate and automobile titles, brokerage statements and records of other investments or assets.
- Cancelled checks for your rent or mortgage payments.
Call Your Insurance Company
Why call your insurance company before going for a mortgage? Mortgage protection is a type of a life insurance that pays out if you die before you finish paying your mortgage, ensuring your spouse and dependents don’t worry about the monthly repayments.
Best Banks And Financial Institutions in the USA That Offer Best Mortgage
Now equipped with the above information, what are the best banks and financial institutions of the USA that offer the best mortgage? This includes but is not limited to: Prosperity Bancshares, Signature Bank, State Street Bank, Community Bank System, and Bank of Hawaii.
According to the Forbes American ranking report of 2014, Prosperity is worth of $16 billion and is founded in more than 218 locations, with one of them being the Houston area, which is its headquarters. The bank has only six branches outside of Texas. Prosperity non-performing loans are at 0.1%, and assets that are non-performing stand at 0.1% too. This makes it to rank among the three lowest in the banking industry. Its NPL is an eye popping 1,144%. It skirted the housing crisis for the most parts due to its resilient Texas economy, and it has been snapping up other Texas banks. Its acquisition of FVNB, Tulsa & Okla (F&M Bank), who had combined assets of $4.9 billion, helped fuel revenue for Prosperity at a growth of 30%, fourth best among the biggest banks.
Why Prosperity Bancshares is considered as one of the Best Mortgage Lender.
Prosperity Bancshares offers many types of home loans designed to meet your specific needs. They have highly experienced lending professionals are readily available and who will always take you through the sometimes complex home loan process. Low closing costs and low interest rates combined with expeditious service makes them the outstanding best mortgage provider. At Prosperity Bancshare, you expect fast approval, low closing costs and local servicing. They also have programs to purchase, refinance or improve homes.
This is a New York based bank. It was ranked 2 by Forbes. It is one of the most profitable banks in the USA. It has a return on average equity of 12.7%. It is worth of $217 billion and has the lowest rate of both non-performing loans and assets of any bank. Tyler Hall, a SNL bank analyst, is quoted as saying, “We are on the backside of the crisis and companies are starting to look for growth”.
Pros of Going for a Mortgage at Signature Bank
The bank offers the best mortgage terms to its clients. Most people who have taken mortgages with the bank have written positive reviews about the same. Being ranked amongst America’s best banks, it offers quality services to its clientele. In its home loans department, it offers the following quality services that have been rated so highly by customers.
- Fixed rate mortgages
- Adjustable rate mortgages
- Jumbo and conforming loan amounts
- 30 year fixed progressives (10 years interest only)
- Many more fixed options.
Ranked 3rd by Forbes, State Street Bank has a return average equity of 10.0%; Total assets at $217 billion; non-performing loans and assets at 0.0%.
Why get a mortgage with them?
It is a member of FDIC, they offer lower repayments rates; they have countless loan programs and one is spoilt for choice for a best fit, at the best rate – for your new home purchase or refinance. State street bank serves as a custodian for an investment company. It serves mutual funds, and other collective investment funds, corporate and public retirement plans, insurance companies, foundations, endowments and other investments pools. It was founded in 1792 and it is based in Boston, Massachusetts. It operates as a subsidiary of State Street Corporation.
Why Get A Mortgage With State Street Bank
30 years fixed rate – 3.875%, APR 3.911%; 15 years fixed rate – 3%, APR 3.063%;
If you are into real estate, this is the best mortgage lender. Receive competitive and flexible terms when you invest in new property with the help of State Street Bank’s real estate loan. They have professionals who will offer free pre-qualification and consultation services so that you have an upper hand when it is time to negotiate price. In summary, they will offer you with:
- Competitive Rates
- Flexible Terms
- Free Consultation
- Pre-qualification available
- Loan Decisions
- Easy to apply
Community Bank System
According to Forbes report, Community Bank System has a net worthy of $7 billion, return on average equity of 9.3%; non-performing loans and assets stands at 0.6%. It is among the best mortgage lender. It is a member of Federal Home Loan Bank System. It is base in DeWitt, N.Y. It is a wholly owned bank subsidiary; it has over 180 customer facilities across upstate New York and Northeastern Pennysylvania.
Pros of Getting a Mortgage Loan with Community Bank System
With Community Bank System, you are assured of getting one of best mortgage lender in the USA. With home equity loans and mortgages you can:
- Buy, build or refinance your home
- Get automatic transfer or coupon books to make payments simple
- Interest paid may be tax-deductible
- It is available for the purchase of undeveloped real estate or raw land
The advantage of doing a mortgage with Community Bank System is that, you have options of mortgages to choose from. They range from:
- Fixed rate mortgage
- Adjustable rate mortgage
- Construction mortgage loans
- Mortgages: Primary – vacation – investment option
- Portfolio Lending
- Seasonal Properties
- Manufactured homes
- Vacant land
This bank has a total asset of $14 billion, has a return on equity of 14.8%, non-performing loans and assets at 0.7%.It’s presence is felt in the USA as it absorbed Bank of America Samoa, which the Navy had established in 1914. Its base is in Honolulu, Bishop Street. They are committed to helping grow local economies and strengthen the communities they serve. They combine local support and expertise with national reach to connect customers and communities across the country to the resource they need to thrive. The company is listed on the New York Stock Exchange as “BOH”, in the community, Bank of Hawaii is also affectionately known as “Bankoh”.
Pros of Getting a Mortgage Loan With Bank of Hawaii in the USA
Whether you are looking to buy a home or refinance, Bank of Hawaii is one of the best mortgage lender. It offers a complete range of mortgages and home loans to fit your needs. You can get a free analysis by calling them on 808-643-HOME (4663). They provide outstanding services, and offer solutions of homes of all sizes. This bank will service your loan locally from start to finish and the loan comes with your very own Personal Banker. Here, you have a choice to choose from a variety of mortgage loans offered, depending on your need.
- They offer fixed rate mortgage which have low fixed rates and predictable payments that will stay the same for the entire term of the loan, no surprises.
- Adjustable rate mortgage that has a fixed rate for an initial period followed by an adjustable rate. Interest rates and monthly payments can adjust periodically over the life of the loan. It offers lower initial monthly payments.
- Jumbo loans for those who need loans greater than $625,500.
- Home equity loans and lines of credit for homeowners to for home improvement projects, debt consolidation.
- Construction/home improvement loan which you can use to buy land and build, all in one permanent financial plan.
Cons of Getting a Mortgage Loan With Bank of Hawaii in the USA
Disadvantages of a mortgage loan which are universal include the following:
You will pay back a lot more than you originally borrowed
This means that you will carry an enormous debt over a long period of time. The other major drawback is that since the mortgage is secured on your property, you have to be able to keep up with mortgage repayments or you could lose your home. If homeowners can’t make the repayments, their homes will be repossessed. The bank or building society will then sell it to recover their money. Although the monthly amount you are paying may seem reasonable, the total amount you pay back over the years is huge.
Watch out for fees
It is not only the cost of interest that mounts up when you have a mortgage, fees can also be hefty. There will be set there will be set up costs each time you take out a new mortgage and these varies significantly but some are as high as $2,000. Conveyance costs are also a headache to incur when getting mortgage loan; penalty fee is also not left out in case you want to get out of your mortgage deal as early as possible
General advantages of a mortgage loan, irrespective of which financial institution you go to include:
- It makes home ownership affordable.
- Buying a home is the largest investment one makes individually and it is the greatest debt that one can do without going for a mortgage.
- It is a cost effective way of borrowing because interest rates on mortgages tend to be lower than any other form of borrowing because the loan is secured on your property.