If you’re thinking of buying a home in Iowa, you’re in luck – this state is one of the cheapest to live in in 2021. With mortgage rates as low as 0.13%, you won’t be hard-pressed to find a home that suits your budget and preferences.
However, your loan officer has no control over interest rates, and they’re constantly fluctuating. To get the best mortgage available on the market, you’ll have to work with the best lender. Consider factors such as credit score requirements, closing costs, mortgage types, and customer satisfaction.
If you’re having trouble finding the right mortgage lender in the Hawkeye State, this guide is here to help. In it, you’ll learn about how to select the best mortgage lender and what your options are in Iowa.
No two mortgage lenders are the same. Many will differ according to their application process, what mortgage types they offer, and what their fees are. Below are a few factors you should consider when making your decision.
There are several ways to purchase your home through a variety of loan products:
The different types of mortgage lenders include:
Interest rates aren’t the only factor that will determine how affordable your mortgage loan is. You will also have to consider the following:
When shopping for a mortgage lender, a few things you’ll want to consider about their application process include:
If consumers aren’t happy with a particular mortgage lender, it will show online. You can get a better picture of how a mortgage lender treats its client by reading online reviews or consulting the Better Business Bureau (BBB), which grades lenders from F to A+. The JD Power firm also publishes customer satisfaction studies and provides other valuable resources on its site.
If you are applying for a home loan in Iowa, here are the top 5 mortgage lenders you want to consider.
Minimum credit rating: 620 for conventional loans, 680 for jumbo loans, and 580 for FHA loans
Minimum DP: 3%
Mortgage offerings:
BBB Rating: A+
JD Power rating: 883
Overview: Quicken Loans is the most popular online lender for consumers across America. They are known for their flexible-term home loan products such as YOURGage, which allows homebuyers to choose their own terms. Clients can access information and reach customer service every day of the week. On their site, you’ll also find many buying guides, financial tools, and popular mortgage topics.
Availability: Available to consumers buying a home in any state
Minimum credit rating: 620
Minimum DP: 3%
Mortgage offerings:
BBB Rating: A+
JD Power rating: N/A
Overview: If you have less-than-stellar credit, the pro of working with this mortgage lender is its alternative methods of calculating credit. Even consumers with no credit can get help buying their first home. Alternatively, those with a more attractive credit history can benefit from its online application process and select from a long list of mortgage products.
Availability: Iowa and all 49 other states
Minimum credit rating: 620
Minimum DP: 0%
Mortgage offerings:
BBB Rating: N/A
JD Power rating: 813
Overview: If you are part of the active military or a veteran, buying a home from the Navy Federal Credit Union is the best decision. It is the largest credit union in the U.S., employs multiple lenders, and has over 300 branches. It specializes in VA loans and provides options for those who don’t have the money for a property down payment.
Availability: Iowa and all 49 other states
Minimum credit rating: 620
Minimum DP: 3%
Mortgage offerings:
BBB Rating: A+
JD Power rating: 860
Overview: The Bank of America has been operating for over 200 years and is hailed for its wide variety of banking products. Compared to other mortgage lenders, it charges lower fees and offers assistance for those in search of their first home. Those banking with a HELOC do not need to pay annual fees, either.
Availability: Iowa and all 49 other states
Minimum credit rating: 620
Minimum DP: 3%
Mortgage offerings:
BBB Rating: B
JD Power rating: N/A
Overview: If you want to find and purchase a property entirely online, the best way to do it is through Better Mortgage. This mortgage lender offers complete underwriting on its website from start to finish. You can also track your approval status with the help of a dedicated loan officer. Better yet, consumers don’t have to pay lender commissions.
Availability: Iowa and all other states except for Hawaii, Massachusetts, and Nevada
If you are in search of a new home in Iowa, you can start looking through the options listed above. Ultimately, the Iowa mortgage lender you select will depend on the property you want to buy and what you can afford.
For more information about how to buy a home, contact our experts at Wesley Mortgage LLC. We can direct you to the right lender or bank and offer helpful resources to quicken your search.