Massachusetts Mortgage Lender

    Massachusetts Mortgage Lender: Our Top 5 Picks

    shutterstock 1414828031 7

    Buying a house in Massachusetts might be one of the best decisions you can make for yourself and your family. The Bay State is home to some of the top universities and colleges in the world. Plus, a few of the nation's largest companies are headquartered in Boston, giving you plenty of job opportunities.

    But buying a home in Massachusetts isn’t a walk in the park. You need to research mortgage lenders, compare their mortgage rates, and learn about loan programs you can qualify for.

    Thankfully, we've done all the hard work for you. In this guide, we'll share all the information we have on the best mortgage lenders in Massachusetts – we'll also outline how to choose a lender that's right for you. By the end, you'll know exactly what to do to finance your brand new Massachusetts home.

    shutterstock 1910862946

    How To Choose A Mortgage Lender

    Before we name the top mortgage companies in Massachusetts, let's discuss the factors we consider in choosing a great lender. In general, we consider the following:

    Mortgage Options

    A mortgage lender should give you plenty of loan options. Here are some of the types you can choose from:

    • Conforming loans: These mortgage loans fall within the maximum borrowing limits set by the Federal Housing Finance Agency (FHFA). In Massachusetts, the one-unit limit is $548,250, on par with the national average.
    • Jumbo mortgage: Jumbo mortgages have loan amounts that exceed the maximum limits set by the FHFA. These types of loans can be used to finance properties with a very high purchase price.
    • Fixed-rate loans: Fixed-rate mortgages come with a set interest rate. Most lenders give you the option to choose from a 5-, 10-, 15-, 20-, or a 30-year fixed-rate loan. Most buyers like this type of mortgage because of the consistent monthly payments.
    • Adjustable-rate mortgages: Adjustable-rate mortgages come with an initial fixed interest rate period. Once that expires, the interest rate will be adjusted annually based on a market index that your lender chooses.
    • Government-backed loans: Designed for low- to moderate-income families, these home loans usually come with lower interest rates and more flexible credit requirements compared to conventional loans. Typically, you can find loans insured by the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), and the Department of Veterans Affairs (VA).
    • Interest-only mortgage: For this type of mortgage, you only pay the interest on the loan for a set period of time, typically within 5 to 10 years. This gives the owner the freedom to use their cash for other expenses, like home repairs.
    • Mortgage refinancing: Mortgage refinancing means paying off your existing home loan and replacing it with another one. Most people refinance to renegotiate their loan terms or take advantage of lower interest rates.

    Affordability

    Since interest rates change regularly, we won't be basing a mortgage lender's affordability on the rates they offer. Instead, we look at some of the factors that make it easy or affordable for borrowers to secure a home loan. These include the following:

    • Minimum FICO score: Typically, borrowers are required to have a credit score of 620 before they can get a mortgage. However, some lenders offer loans to people with a credit score of 500.
    • Minimum down payment: Lending companies typically require borrowers to make a 20% down payment. However, there are now some banks or nontraditional lenders that offer home loans with only a 3% down payment, provided that borrowers pay for private mortgage insurance (PMI).
    • Closing costs: This refers to the origination fees, attorney fees, and other charges associated with processing the home loan. Depending on the lender, closing costs can amount to 3% to 5% of the loan amount.
    • First-time homebuyer programs: Some banks or mortgage companies partner with the state government to make it affordable for people to buy their first home. Loans secured through these programs typically come with lower interest rates or lower minimum down payment amounts.

    Application

    Applying for a mortgage can be a long and tedious process, but the best lenders make it quick and easy. Here are some of the questions we ask when assessing a mortgage lender's application process:

    • Can you apply for a mortgage online? These days, it's important for mortgage lenders to have a secure and well-designed website that allows people to apply online. This makes the application process convenient and stress-free.
    • Can you check mortgage rates before you apply? In order to find the company that offers the best mortgage rates, borrowers need to shop around and check rates from multiple lenders. This can be easily done if the mortgage lender posts information about their mortgage rates without requiring people to submit personal information on their site.
    • How fast does the lender take to process and close mortgage applications? The most reliable mortgage lenders should be able to process loans within two to four weeks.

    Customer Service And Satisfaction

    It's important for us to choose mortgage lenders that can create and maintain lasting relationships with their customers. To do this, we refer to studies from two agencies: JD Power and the Better Business Bureau.

    JD Power publishes annual customer satisfaction studies for multiple industries. Meanwhile, the BBB is an organization that keeps track of how trustworthy a company is. They assign a letter grade to these companies based on how well they respond to feedback from their clients.

    Availability

    Some people like to speak with a loan officer face-to-face or through the phone because that makes it easier for them to clarify details about their mortgage. With that said, it’s a good idea to choose a company that has a Massachusetts division.

    shutterstock 338700176

    5 Best Massachusetts Mortgage Lenders

    1. Guaranteed Rate: Best For Online Borrowers

    Min. credit rating: 620

    Min. down payment: 3%

    Loan types offered:

    • Conventional
    • FHA
    • Jumbo
    • USDA
    • VA
    • Interest-only

    BBB Rating: A-

    JD Power rating: 832 (2020 US Primary Mortgage Origination Satisfaction Study)

    Overview: Guaranteed Rate is a reliable mortgage lender that promises the most convenient application process. Just log into the lender's website, apply for a mortgage, and get approved within minutes. You can also sign and upload documents on the lender's web page.

    If you'd rather speak with a loan officer face-to-face, you can visit one of the company's physical locations. You'll find the main office in Chicago, but Guaranteed Rate also has 300 branches across multiple states.

    Compared to other mortgage companies, Guaranteed Rate keeps its interest rates on the lower side. Mortgage rates are also posted and updated daily, making it easy for you to compare your options.

    Availability: Guaranteed Rate is licensed to originate loans in all 50 states and DC, with 28 physical branches in Massachusetts

    2. Bank of America: Best For First-Time Buyers

    Min. credit rating: 620

    Min. down payment: 3% (Affordable Loan Solution mortgage program)

    Loan types offered:

    • Conventional
    • VA
    • FHA
    • Jumbo

    BBB Rating: A+

    JD Power rating: 860 (2020 Primary Mortgage Origination Satisfaction Study)

    Overview: Bank of America is our preferred mortgage lender for people planning to buy their first home. The bank offers various programs for first-time homebuyers as well as those with moderate income.

    The best part about working with Bank of America is the level of customer service you can expect. A loan officer will give you a step-by-step walkthrough of the qualification and underwriting process. You also won't have trouble asking for details about your mortgage.

    Still, if you prefer to apply for a mortgage online, you won't have trouble doing that either. Bank of America has an online portal where you can upload documents, track the progress of your mortgage, and sign paperwork.

    Availability: Bank of America is licensed to operate in all 50 states and DC

    3. Veterans United: Best For VA Loans

    Min. credit rating: 640

    Min. down payment: 0%

    Loan types offered:

    • Conventional
    • Jumbo
    • VA
    • USDA
    • FHA

    BBB Rating: A+

    JD Power rating: 873 (2020 Primary Mortgage Origination Satisfaction Study)

    Overview: If you're interested in getting a VA loan, Veterans United should be one of your top choices. Veterans United employs loan officers from each division of the armed forces to serve as your advisor. Additionally, the lender is available by phone 24/7 and also allows people to apply through their web page.

    The downside is, Veterans United charges higher fees compared to some other lenders. The mortgage lender also has a higher minimum credit score requirement.

    Availability: Veterans United is licensed to operate nationwide but only has physical locations in 18 states

    4. New American Funding: Best For Borrowers With Low Credit Scores

    Min. credit rating: 600

    Min. down payment: 3%

    Loan types offered:

    • Conventional
    • USDA
    • VA
    • FHA

    BBB Rating: A+

    JD Power rating: N/A

    Overview: New American Funding is a  nonbank lender specializing in assisting people with low- to-moderate income. The lender has a lower credit rating requirement compared to its competitors and also uses manual underwriting. The lender also offers several programs that allow buyers to gain DP assistance.

    Working with New American Funding is also fairly convenient. You can apply online and complete the mortgage process within two weeks.

    Compared to other lenders, New American Funding offers a wide range of mortgage options. The payment terms are also highly customizable.

    Availability: New American Funding is licensed to operate nationwide, except in Hawaii and New York. It also has branches in 31 states.

    5. Fairway Independent: Best For Refinancing Or Renovations

    Min. credit rating: 580

    Min. down payment: 3%

    Loan types offered:

    • Conventional
    • Jumbo
    • Refinance
    • Renovation
    • Reverse
    • USDA
    • FHA
    • Home Equity

    BBB Rating: A+

    JD Power rating: N/A

    Overview: If you are looking for a lender that offers a wide range of mortgage options, Fairway Independent should be at the top of your list. The lender offers virtually every mortgage product available, from conventional loans to renovation loans.

    Like most of its competitors, Fairway Independent has a digital application process that can be completed within minutes. It also has a free mobile app where you can access information about your mortgage.

    Aside from that, Fairway Independent works with several state financing agencies. This allows them to offer mortgages with DP and closing cost assistance.

    Availability: Fairway Independent is licensed to operate in all 50 states. It also has multiple branches in Massachusetts, including Boston and Danvers.

    shutterstock 1014982615 1

    Closing Thoughts

    Choosing a mortgage lender in Massachusetts can be overwhelming. But if you narrow your options to the lenders on our list, you can easily find a reliable, trustworthy business to finance your new home.

    If you need more information about getting a mortgage in the state, get in touch with Wesley Mortgage, LLC. 

    Our mortgage brokers can assist you with the following:

    • Looking for a trusted mortgage lender
    • Getting the best rates in Massachusetts
    • Contacting a professional loan officer
    • Understanding the details of your mortgage
    • Processing your mortgage application
    Written By Ed Wallace
    Follow the author on:
    arrow-up