The average cost of buying a home in New Hampshire is $290,163, making it the 15th most expensive state in America to buy a house. This puts it slightly above America's national median cost of $287,148! Because of the higher price tag, future homeowners must look at all factors that will give them the best mortgage loan for a new home in New Hampshire.
Before purchasing a home in New Hampshire, you should look at the different lender options available and the current mortgage rates. Choosing the right lender will make it easier for you to become a homeowner. They may have more lenient credit requirements that allow more people to qualify for their loans, or they could offer more favorable monthly payment terms.
If you're looking for the best New Hampshire mortgage lender, read on! We'll tell you what criteria lenders look at before offering loan products to customers, and list our top five picks for New Hampshire lenders.
Choosing A New Hampshire Mortgage Lender
Before we examine which New Hampshire mortgage lending companies are the best, let's talk about what makes a good lender. Here, we look at the following key factors: a wide variety of offered loan products, ease of application, affordability, availability of physical branches, and quality of customer services.
Loan Types Offered
Even if a mortgage lender offers excellent rates, you may have to choose other lenders if they don't offer the right mortgage products for your needs. To help you understand the difference between these loan types, here are some of the most common loan products offered in recent years:
Conforming loans: These are common home loans that follow the maximum FHFA annual loan limit of $548,250.
Jumbo mortgage: These are mortgage options for purchasing homes priced above New Hampshire's lending limits. These home loans typically come with a higher interest rate to compensate for the higher amount of money.
Fixed-rate conventional loans: These loans set fixed payment rates for the entire term, making them ideal for borrowers who want a predictable monthly payment. A lender will typically offer these home loans with terms of 10, 20, or 30 years.
Adjustable-rate conventional loans: Also known as ARMs, adjustable-rate mortgages set a fixed rate for a specified period. When the period ends, the loan's guaranteed interest rate will have a changing annual rate based on the market's current rates.
Government-backed loans: Qualified applicants should look into VA, FHA, and USDA loans. These are a top choice for many first-time borrowers because they offer lower interest rates or better payment terms, such as a lower or zero down payment requirement.
Home equity loans: Also known as home equity lines of credit (HELOCs), this type of mortgage loan lets you put up your property as collateral for your mortgage.
Mortgage refinance: Refinance deals let borrowers trade existing mortgages for new ones, typically with a new balance to repay. Some homebuyers choose this option because it allows them to pay a new lender that offers better terms and lower rates compared to their former lender. A refinance also lets you consolidate debt through a rate-and-term refinance or cash-in/cash-out refinancing.
When looking at a mortgage bank or business, we check how easily an application can be completed and submitted. We also look at how long it takes for an application to be approved by the mortgage lender.
Here are the criteria we look at in a home loan lender's application process:
Transparency of mortgage rates: The more information that a lender shares about their rates and added costs, the easier it will be to compare their financial products and choose the best deal. Check if a lender readily discloses their mortgage rates, closing costs, and lenders' fees even if you don't submit an application. Some lenders require you to talk to a loan officer before you find out this information.
Accessibility: Not everyone has the time to apply in person with a loan officer, so online accessibility is a must. See if your potential bank or lender allows you to make your loan application online.
Length of time to complete an application: While most lenders can close applications for mortgages in several weeks, the process can stretch on for a few months. Get a mortgage broker to ask how long it takes for an application to be finalized so you know when to start your house search.
Number of required documents: A bank or lender may request documents to help them gauge your ability to meet monthly payments. The more documents you need to submit and get verified, the longer it will take for your application to be approved.
To assess affordability, many mortgage brokers advise borrowers to see how low a lender's rates can go. However, interest and refinance rates are constantly changing, so they're not the most reliable indicator for consumers.
Here are some criteria which provide other relevant information about a mortgage banker or company's affordability:
Minimum down payment: The lower the down payment required by a bank or mortgage lending business, the easier it is to become a homeowner. However, lenders offer lower interest rates if you can put down a larger amount of money.
Most New Hampshire mortgage lenders will require a minimum down payment of 20%. However, some lenders will set minimum down payments as low as 3%, provided that you're willing to get private mortgage insurance.
Minimum credit score: Your credit score indicates your ability to repay debts on time, which is why lenders require them for a home loan application. Generally, mortgage lenders require a minimum score of 620, but some may set a lower requirement to make their loans more affordable.
First-time homeowner programs: Each state will typically have a program that helps people buy their first home. These payment assistance programs typically favor families and make it easier for a first-time borrower to afford their future home.
These state programs offer closing cost assistance, tax credit coverage, and loans for down payments. Ask your lender's loan officer if they offer these programs or have special ones of their own.
Closing costs: Borrowers should prepare for additional expenses upon the close of their purchase. Your final closing cost will typically include expenses such as application and origination fees. Some lenders may waive or lower these costs, or allow you to fold them into your loan.
If you prefer meeting with a loan officer face-to-face, availability is an essential criterion. We assess whether a lender operates in a state and how many branches it has. The more branches there are, the easier it will be to have your concerns addressed in person.
Mortgages are a long-term financial commitment, so you need a bank or lender that knows how to address your needs and concerns. Search a New Hampshire lender's BBB or JD Power ratings to find out how other consumers rate their helpfulness and customer services.
The 5 Best New Hampshire Mortgage Lenders
We’ve chosen five New Hampshire mortgage lenders that fulfill all of our criteria. Each of these New Hampshire mortgage lenders is strongest in a particular step of the process, so make sure you choose the one that best suits your needs.
Before we give a complete breakdown of each company, here's a quick comparison of our top five choices:
Minimum FICO Score
Minimum Down Payment
JD Power Rating
Variety of loan products
Bank of America
Existing bank customers
1. Rocket Mortgage By Quicken Loans - Best Online Lender
Serviced by Quicken Loans, Rocket Mortgage offers a hassle-free online application experience. It posts instructional videos online to guide you through the process, simplifying each step for consumers.
It offers a wide variety of mortgage loan types, such as conventional and refinancing loans. It also offers FHA and VA loans, but you'll need to look elsewhere for a USDA loan.
Lender availability: Rocket Mortgage's online services are available nationwide.
2. Wells Fargo - Best For Jumbo Loans
Wells Fargo is a popular option for jumbo loans, as it provides assistance through a special private mortgage banking team. It also has good online access, allowing you to submit employment verification and upload documents on their site. Consumers should note, however, that Wells Fargo has fended off scandals about fake deposit and credit card accounts, as well as improper fee collection.
Lender availability: Based in California, Wells Fargo has over 5,000 branches in 37 states.
3. Fairway - Best Variety of Loan Products
Fairway's biggest advantage over other mortgage lenders is its wide selection of loan types. Apart from conventional home loans and government-backed loans like a VA loan, it also offers HELOCs and renovation loans.
It's also very easy to apply with them as it’s also an online lender. You can complete your application through their app or website, or through a loan officer in person at one of their branches.
Lender availability: Fairway has 700 branches in multiple states nationwide.
4. Veterans United - Best For Military Members
Veterans United is America's largest VA loan provider, originating over $175 million in VA loans. It also offers VA refinances and employs advisors from different branches of the armed forces, making them a top choice for military borrowers. However, it's hard to find information about USDA, FHA, and conventional loans on their site.
Lender availability: Veterans United allows online applications but has physical branches in only 18 states.
5. Bank of America - Best For Their Existing Consumers
This bank is a highly convenient option for those who already have an account with them. If you're an existing customer, Bank of America will automatically fill in your financial information and contact details. The bank will also offer you a discount of up to $600 on your origination fee.
Another bonus is that you can complete your application from start to finish online. No need to talk face-to-face with a loan officer or visit a bank branch!
Lender availability: Bank of America has over 4,000 bank branches in 37 states.
Get Financial Advice For Buying Your Dream Home
Buying a house in New Hampshire is slightly pricier than in other states, so it's important to find a lender that will lower your purchase costs. With the right lender or bank, you'll get the right mortgage loan that will allow you to settle in your dream house at a good price!
To find out more about home mortgages in New Hampshire, consult Wesley Mortgage, LLC. We'll help you learn about the application process and find the best lender for you!