Connecticut Mortgage Lender

    Connecticut Mortgage Lender: A Guide To Finding Affordable Loans

    The average cost of buying a home in Connecticut is $255,555, making it the 21st most expensive state in America to buy a house. While this is still below America's national median cost of $287,148, there are other factors that will affect how affordable it is to purchase a new home in Connecticut.

    Before you buy your first home in Connecticut, you'll need to look at current mortgage rates and the different lender options on the market. If you pick a good lender, it’ll be easier for you to become a homeowner. They may offer favorable terms for monthly payment or have more lenient credit requirements that make more people qualified to apply.

    If you're looking for the best mortgage lender in Connecticut, keep reading! We'll tell you our top five Connecticut mortgage lenders, and what mortgage lenders look at before offering their loan products to first-time home buyers.

    Tips For Choosing The Right Lender

    Before listing the five best Connecticut mortgage lenders, let’s discuss our criteria for choosing the right Connecticut mortgage lender. We considered the crucial elements of the ease of the application process, the variety of loan products offered, ease of application with the Connecticut mortgage lender, and customer service.

    Ease Of Application

    When looking at a service provider, we weigh how easy the application is to complete, as well as how quickly a borrower can fill out and get an application approved. Here are the major elements we look at in a lender's application process:

    • Online accessibility: Online applications mean you don’t need to visit a physical site to apply for a loan, making it more convenient for borrowers. Find out how easily a lender in America will allow you to make an online application on their site. This includes how convenient it is to contact them for an inquiry and submit documents.
    • Required documents: These are requested by a lender to determine ability to make a monthly payment. The more documents required, the longer it will take to verify them and assess an application. Typically a Connecticut mortgage lender will request documents such as bank statements, a person's contract of employment, and other supporting income documents. 
    • Length of time to complete an application: The longer it takes to fill and finish an application, the longer you have to wait to settle into your dream home. Ask your assigned loan officer how long it will take from the day you submitted documents to have someone approve your application. The average bank or mortgage loan application on a website will take anywhere from several weeks to months to get approved.
    • Online transparency of mortgage rates: When a lender has tables for their mortgage rates, interest, and mortgage loan calculators, this lets you easily compare their products and pick the best deals. Give a lender in America extra points if they disclose closing costs and lender fees online even if you don't submit an application.
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    Affordability

    While many first-time homebuyers look at the interest and refinance rates to determine affordability, they are always changing – so they're not the most reliable indicator for consumers. Here are some criteria which provide other relevant information for affordability.

    • Minimum down payment: Lower down payments make it easier for borrowers to become homeowners. The larger the down payment you can make, the more favorable lenders' ratings will be. This is because it lessens the risk that you will default on your loan and fail to make a monthly payment on time.

    Typically, Connecticut mortgage lenders will require borrowers to pay a minimum down payment of 20%. However, some lenders will accept down payments as low as 3% if you are willing to pay for private mortgage insurance.

    • Minimum credit score: A lower required credit score makes it easier for people to qualify for a loan from a Connecticut mortgage lender. On average, a loan officer will require a credit report score of at least 620.
    • First-time homeowner programs: Every state will have a program for mortgages favoring first-time homeowners, especially if they are families. These financial assistance programs can make it easier for a first-time borrower to become a homeowner.

    These programs will typically cover a purchase's tax credits, loans for down payments, and closing cost grants. See if your lender's officers offer these programs or have special ones that will make your purchase easier.

    • Closing costs: Borrowers should prepare to pay additional fees upon the close of their purchase. Your final closing cost will typically include origination fees and application fees. Some lenders will allow you to fold this cost into the loan or will offer lower closing costs.

    Customer Service

    A mortgage loan is a contractual obligation that lasts a very long period of time, making it important to have a Connecticut lender who knows how to cater to their customers' wants and needs.

    Whether it's a branch or their principal offices, a mortgage lender should have consistently good service. Check out a Connecticut lender's BBB or JD Power ratings to see how other borrowers rate their helpfulness and customer service while advancing funds!

    Variety Of Loan Products Offered

    Even if a Connecticut lender offers good rates, they won't be able to help you if they don't offer the loan product you need. Here are the types of loans by various mortgage lenders. Check if your preferred lender offers these mortgage types:

    • Conforming loans: These mortgage loan types that follow the FHFA annual loan limit, which is set to a maximum of $548,250 as of 2021. However, in high-cost real estate markets like New York, a higher limit of $822,375 is allowed.
    • Government-backed loans: USDA, FHA, and VA loans offer more favorable terms for qualified borrowers, often with the advantage of a very low or zero down payment. This makes it especially attractive for first-time consumers or those with a low credit score who qualify within the criteria of a government department.
    • Adjustable-rate mortgages: Also known as ARMs, these loans have a fixed rate for a specified period. When that period is up, the loan's guaranteed rate for interest will change annually based on a chosen market index.
    • Fixed-rate loans: This type is recommended for those looking for predictable expenses in their monthly budgets. This is because loans will have fixed rates for the entire mortgage loan term. Depending on the lender, your loan may close within 10, 20, or 30 years with a fixed rate.
    • Mortgage refinancing: These home loans allow consumers to pay off their outstanding loans. This is best for those who can get more favorable rate quotes and mortgage terms from lenders than their current ones in Connecticut. It can help consumers consolidate debt through rate-and-term refinancing services or cash-in/cash-out refinancing.
    • Home equity loans: Also known as HELOCS or home equity lines of credit or HELOCs, these mortgage loan types allow your home to stand as collateral for your mortgage loan.
    • Jumbo mortgage: This is a type of bank or lender mortgage loan that exceeds the maximum limit.

    The 5 Best Connecticut Mortgage Lenders

    1. Chase - Top Choice For A Variety Of Mortgage Types

    Min. credit rating: 620

    Min. down payment: 20%, but goes as low as 3.5% for an FHA loan and 3% for qualified applicants of their Chase DreaMaker mortgage loan program

    Loan types offered:

    • Conventional
    • FHA and VA loans
    • Refinance loans
    • Renovation loans
    • Adjustable-rate loans
    • Jumbo
    • Fixed-rate loans

    Overview: As the largest bank in America, Chase is uniquely positioned to offer a variety of mortgage loans, banking, and credit services. Chase will offer the typical house loan options given by other Connecticut lenders by law. However, it has its own special programs which allow first-time consumers to shell out less for their down payments on their mortgage process, like DreaMaker for Chase, 

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    2. Bank of America - Top Choice For Traditional Lending

    Min. credit rating: 620 for conventional; 660 for VA and 640 for FHA loans

    Min. down payment: 3% through its Affordable Loan Solution mortgage program

    Loan types offered:

    • Conventional
    • Jumbo
    • Fixed-rate
    • ARMs
    • Federal Housing mortgages
    • VA loans
    • HELOCs
    • Refinance services
    • Affordable Loan Solutions

    Overview: Known as the second-largest bank in America’s second-largest bank existing for over two centuries, BoA consistently provides excellent services in all 50 states. Renowned for its low-interest rates, BoA is the lender of choice for those looking for discounted rates and a variety of loan products.

    3. Quicken Loans - Top Choice For Online Home Buyers

    Min. credit rating: 620 for a conventional loan and 580 for an FHA loan

    Min. down payment: 3% for a conventional loan but goes as low as 0% for a VA loan

    Loan types offered:

    • Conventional
    • FHA
    • VA
    • Adjustable-rate
    • Jumbo loans
    • Fixed-rate
    • Refinancing

    Overview: It's easy to complete your loan application with Quicken Loans online. They also provide a loan officer to advise those who need more consumer finance information, offering handy advice to consumers. They are one of the most versatile lenders offering a huge variety of loan products, but those looking for HELOCs should look to other Connecticut lenders.

    4. SunTrust Mortgage - A Top Choice For Low Down Payment

    Min. credit rating: 620

    Min. down payment: 3%

    Loan types offered:

    • Purchase
    • Refinance
    • Home equity
    • Jumbo
    • Fixed-rate
    • Adjustable-rate
    • Government-issued loans such as VA, FHA, and USDA loans

    Overview: Known for its variety of loan options, Suntrust's sample rates and fees are easy to track on its site. However, you won't be able to see customized rates without starting to fill an application.

    5. Carrington Mortgage Services - Top Choices For Borrowers With A Low Credit Rating

    Min. credit rating: 500

    Min. down payment: 3%

    Loan types offered:

    • Conventional
    • Mortgage refinance
    • Adjustable-rate loans
    • Mortgage products for first-time homebuyers
    • Government-issued loans such as VA, FHA, and USDA loans

    Overview: Carrington's loan solutions and interest rates are popular with low-income and first-time buyers. This is because they require a lower minimum credit score and down payment for most of their loan options.

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    Secure Your Dream Home With The Help Of Financial Experts

    More than just the stomping grounds of the affluent, Connecticut is rapidly becoming the home of choice for a person looking for a quieter neighborhood that isn't far off from urban comforts. With the right bank or lender mortgages, it's an affordable choice that will allow you to settle in your dream house.

    Want to start applying for a home mortgage? Consult Wesley Mortgage, LLC to get a free consultation. We'll help you learn everything you need to know to decide on the right lender for your future home!

    Written By Wesley Mortgage
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