Delaware Mortgage Lender

    The Best Delaware Mortgage Lenders Of 2021

    The median home value in Delaware sits at $251,100, relatively close to the national median. It may be tougher to find bargain home prices here than most cheaper states, but it’s not impossible. 

    When you do find a reasonably-priced Delaware home, you’ll need a good mortgage lender. The right lender can help you buy homes with confidence by providing great rates and excellent customer service.

    Don’t know how to search for a good lender? We’ve got you covered. Read on for more information on our top 5 Delaware mortgage lenders and learn the five criteria that make up a good mortgage lender!

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    Choosing A Delaware Mortgage Lender 

    Before you begin your search for the perfect Delaware lender, you need to know what homeowners should be looking for. To help narrow it down for you, we’ve distilled the many considerations into five key criteria:

    Mortgage Loan Products Offered

    The many loan types offered by Delaware mortgage lenders cater to different homeowners – not all loans may fit your circumstances. To help you choose, we’ll explain some of the most common loan options in the market:

    • Conforming mortgages: These include any mortgages that fall under local lending limits set by guarantor companies Fannie Mae & Freddie Mac. In Delaware, the conforming loan limits are set at $548,250. 
    • Jumbo mortgages: People often use jumbo loans to purchase expensive homes since they can exceed Delaware lending limits. However, they feature higher interest rates because they’re not guaranteed by Fannie Mae & Freddie Mac.
    • Fixed-rate mortgages: These conventional loans have unchanging mortgage rates. Their stability makes them good for first-time homebuyers in Delaware. 
    • Adjustable-rate mortgages (ARMs): Conventional ARM rates readjust annually based on a market index. However, they have an initial period of fixed interest rates that last from 3 to 10 years.
    • Government-backed mortgage: These are loans provided by the Federal Housing Authority, the Department of Veterans Affairs, and the United States Department of Agriculture. They typically offer low mortgage rates and low down payment requirements for eligible borrowers. 
    • Mortgage refinancing: Refinancing, sometimes called refis, entails taking out a new home loan to pay off your existing mortgage. People usually refinance to save money by changing their existing mortgage terms or securing better rates. 
    • Home equity lines of credit (HELOC): These loans work like a credit card, giving you a source of funds with your property as collateral. 

    Affordability 

    Delaware mortgage rates always change depending on a homeowner’s financial situation, which means it isn’t a good measure of affordability. Instead, we measure a lender’s affordability by examining how easy it is to qualify for its mortgage offerings. We use four metrics to measure affordability:

    • Minimum credit score: Credit scores measure your likelihood of paying debts on time and are usually used to determine your rates. Most mortgage lenders accept a minimum credit score of 620, but some have lower requirements – making their loan programs more affordable.
    • Minimum down payment: Lenders prefer to see their borrowers make a 20% down payment, but some lenders allow you to pay a minimum of 3%. However, most of these low-down payment loan options require you to pay private mortgage insurance. 
    • Closing costs: You may incur other costs during your mortgage process, like the appraisal fee and origination costs. Lenders typically charge 5% of your loan amount for your closing costs, but some mortgage lenders allow you to waive these fees. Keep in mind that they typically fold them into your loan payments instead, allowing you to avoid the upfront expense but increasing your monthly payments.
    • Homebuyer assistance programs: Many American states, including Delaware, offer assistance programs for both new and repeat homeowners. These programs run by the state of Delaware come in the form of tax credits and down payment assistance, among others. 

    Application Process

    Most good mortgage lenders make their application experience convenient for prospective homeowners in Delaware and other states. We measure convenience with three criteria:

    • Availability of online applications: These days, most mortgage lenders are expected to provide ways to apply online or remotely. This convenience is especially important for people who live too far away to apply in person with loan officers or mortgage brokers. 
    • Rate transparency: Easily accessible rate information helps consumers compare rates between multiple lenders. Lenders display their rates differently – some put sample rates on their website, while others may need you to input financial details or speak to mortgage brokers first.
    • Length of the application process: Sometimes, you may need a mortgage to close quickly before your dream home is bought by someone else. Generally, a mortgage can close within a few weeks, but in some cases, it may take several months to close. 

    Customer Service And Ratings

    Mortgages are a major long-term expense, so good customer service is essential for the best mortgage lenders. We measure the customer service of mortgage lenders through two main organizations: the Better Business Bureau and J.D. Power.

    The Better Business Bureau rates businesses with a letter grade ranging from F to A+ based on its reviews. The Bureau rates businesses based on its handling of customer complaints, transparency of business practices, and many other factors.

    Meanwhile, J.D. Power focuses more on customer feedback. It does surveys from mortgage customers and gives annual awards to recognize the best-scoring financial institution. 

    Access To Lender

    There are two main ways to measure a lender’s accessibility:

    • The number of states it serves
    • The number of nationwide branches it operates

    The first point is self-explanatory because if a lender doesn’t serve your state, you have no other option but to search for another lender. The second point is essential for people who prefer talking to mortgage brokers at the lender’s office.

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    The Best Delaware Mortgage Lenders 

    With the five criteria above taken into account, we present our top five Delaware mortgage lenders. These lenders usually have one signature specialization, so choose whichever one can best cater to your Delaware housing needs.

    1. Fairway Independent Mortgage – Best Variety Of Loan Types

    Credit score requirement: 620 (580 for FHA & VA)

    Down payment requirement: 0-5%

    Loan products offered: 

    • Fixed-rate loan
    • ARMs
    • Jumbo loan
    • Government-backed mortgage
    • Mortgage refinance loans
    • Home equity loans

    BBB Rating: A+

    JD Power Rating: 865 in the 2019 study 

    Overview: Fairway’s greatest strength is its large suite of mortgage loan products. In addition to conventional and government mortgage options, the Wisconsin-based lender also provides renovation loans and HELOCs – there’s something for all kinds of consumers. 

    Moreover, there are multiple ways to apply for a Fairway Independent mortgage. Prospective homeowners can apply online as well as in person at one of Fairway’s 700 branch offices in multiple states. Fairway’s site also provides you with the ability to monitor your process and upload necessary documents online. 

    However, Fairway has a slight disadvantage in terms of mortgage transparency. It doesn’t post any kind of sample rates on its site, so consumers need to make an account and talk to loan officers to get a rate estimate. 

    Lender availability: Fairway operates 700 branches with mortgage services available nationwide.

    2. Veterans United – Best VA Lender 

    Credit score requirement: 640

    Down payment requirement: 0%

    Loan products offered: 

    • Fixed-rate loan
    • ARMs
    • Jumbo loan
    • Government-backed mortgage 
    • Mortgage refinance loans

    BBB Rating: A+

    JD Power Rating: 873 in 2020 study 

    Overview: Having originated $175 million in VA loans throughout 2019, Veterans United’s experience in VA loans is second to none. However, it provides military consumers with more than just VA loans. The lender’s suite of mortgage loans also includes conventional loans and USDA & FHA mortgage options, as well as jumbo mortgages with limits up to $1.5 million.

    You can apply for a Veterans United mortgage online or by phone. You don’t have to worry if you have a limited credit history – it can use your phone bills, rent payments, and other similar records to underwrite your loans. Moreover, Veterans United offers 24/7 customer service, making it easy to reach if you have a problem with your mortgage. 

    Lender availability: Veterans United services loans nationwide and operates branch offices in 18 states.

    3. Rocket Mortgage – Best Online Service 

    Credit score requirement: 620 (580 for FHA)

    Down payment requirement: 3%

    Loan products offered: 

    • Fixed-rate purchase loan
    • ARMs
    • Jumbo loan
    • FHA & VA mortgage
    • Mortgage refinance loans

    BBB Rating: A+

    JD Power Rating: 883 (first place in 2020 study)

    Overview: Rocket Mortgage offers a fast and easy way to apply for mortgages online. With tutorial videos and guidance throughout the entire process, Rocket boasts that its application can be completed within half an hour. 

    Since Rocket is backed by Quicken Loans, the nation’s largest direct lender, it also has a wide variety of loan programs for its consumers. You can choose from the suite of conventional and government loans it offers, although it doesn’t offer USDA and home equity loans.

    Lender availability: Rocket offers exclusively online mortgage lending all across the United States.

    4. Chase – Numerous Low-Down Payment Options And Closing Cost Grants

    Credit score requirement: 620

    Down payment requirement: 3%

    Loan products offered: 

    • Fixed-rate purchase loan
    • ARMs
    • Jumbo loan
    • FHA & VA mortgage
    • Mortgage refinance loans

    BBB Rating: A+

    JD Power Rating: 860 (third place in 2020 study)

    Overview: Like Bank of America, Chase is a major bank that also offers mortgage services to complement other financial products. Its broad lineup of loan options boasts lower rates compared to its peers. For homeowners looking to buy more expensive homes, Chase writes jumbo loans with limits up to $3 million.

    Chase pairs this excellent selection with robust online capabilities that allow you to shop rates and track the loan process. However, you need to start your application by phone or in person with loan officers.

    Chase offers loans that allow you to pay less than 20% down. In addition to its FHA and VA offerings, Chase offers the DreaMaker Program. It allows you to qualify with as little as a 3% down payment and get a $500 closing cost grant simply by completing an education course for first-time homeowners.

    Moreover, DreaMaker, FHA, and VA borrowers can qualify for up to $5,000 in closing cost grants if they buy homes in certain areas. In some cases, getting a refi can also qualify you for a closing cost grant worth up to $2,500.

    Lender availability: The lender offers mortgage services nationwide. However, not all states have Chase mortgage brokers. 

    5. Carrington Mortgage Services – Best For Low Credit Scores 

    Credit score requirement: 620 (500 for FHA & VA, 550 for USDA)

    Down payment requirement: 3%

    Loan products offered: 

    • Fixed-rate loan
    • ARMs
    • Government-backed mortgage
    • Mortgage refinance loans

    BBB Rating: A+

    JD Power Rating: 703 in the 2020 study 

    Overview: If you’re not confident about qualifying for a loan because of your credit report, Carrington is worth a try. Carrington can originate loans to people with lower credit scores because it looks at your credit profile closer. It uses things like bank statements and rent payments to give you a second chance at qualifying for a mortgage.

    You can apply for a Carrington loan online. Its online application feature provides electronic document uploading and signing to make it easier for you. However, it doesn’t have automatic loan tracking – meaning you need to contact loan officers regularly for updates on your loan.

    Lender availability: Carrington is licensed to originate loans in 48 states and the District of Columbia. The two exceptions are Massachusetts & North Dakota. The company also operates 6 branch offices in Arizona, California, Connecticut, Florida, Indiana, and Maryland.

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    Closing Thoughts 

    Even if the median home price in Delaware is close to national values, it’s not impossible to find a bargain-priced home. When you do, you’ll need a good mortgage lender at your side to get the best deals. 

    For the most up-to-date resources and advice about home buying in Delaware, contact Wesley Mortgage, LLC today! Our professionals are ready to guide you through the mortgage process and help make your dream Delaware home come true.

    Written By Ed Wallace
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