How To Find The Best New Mexico Mortgage Lender

Average residential real estate costs in New Mexico are around $253,438 – slightly below the national median of $269,039 and well within the middle price tier of homes in the United States. However, housing costs aren’t everything you need to look at when looking to purchase a home.

Your choice of mortgage lender can significantly impact how affordable and convenient it is to get your mortgage. But since each lender offers different mortgage products, New Mexico mortgage rates, and terms, it can be tricky trying to find a lender that will both suit your needs and your budget.

Fortunately, this guide covers everything you need to know when looking for a new home in the Land of Enchantment. We’re going to break down the best New Mexico mortgage lenders in 2021 and offer advice on how to choose the right one for you.

How To Choose A New Mexico Mortgage Lender

First, let’s talk about how we came up with our list of the best New Mexico Mortgage lenders. There are 5 main factors we looked at while evaluating our options. These are:

Home loan products offered
Affordability
Ease of application
Customer service and satisfaction
Availability

Loan Types

There are lots of different types of mortgages being offered nowadays. Let’s quickly break down each one.

Conforming loans: Arguably the most common loan type, these are loans that fall within the state’s loan limits of $548,250.
Jumbo mortgages: These are loan types that exceed the maximum mortgage loan limit – typically used when buying bigger properties.
Fixed-rate loans: These are loan types that have fixed or unchanging loan rates and are typically offered in 10-, 20-, or 30-year terms. Since your monthly payments don’t change with fixed-rate loans, they are perfect for beginners who want consistency in their expenses.
Adjustable-rate mortgages: These loans have an introductory period wherein your mortgage rates are fixed. After that period is over, the interest will fluctuate annually depending on the market index chosen by your lender. Adjustable-rate mortgages come in terms of 3/1, 5/1, 7/1, and 10/1. The first number refers to the length of the loan, while the second number refers to the number of times the rate can change in a year.
Government-backed loans: Backed by the federal government, these mortgage loans are designed for first-time buyers who may have poorer credit or fewer savings. They are offered by the Federal Housing Authority (FHA loans), the Department of Veterans Affairs (VA loans), or the United States Department of Agriculture (USDA loans).
Home equity lines of credit: Colloquially referred to as HELOC, this refers to a financial product that acts like a credit card backed by the value of your home. Since your property acts as the collateral, defaulting on payments could result in your property being foreclosed.

Affordability

The actual rates offered by mortgage agencies are always changing depending on the current state of the housing market. So instead of looking at unpredictable rates, we instead evaluate lenders’ affordability based on how easy it is to secure a loan.

Minimum credit score: Your credit score gives lenders an idea about how good of a borrower you are. Different lenders have different standards, and some will require higher credit scores than others. The lower the minimum required credit score, the easier it is to take out a loan.
Minimum down payment: Most mortgage lenders prefer a 20% down payment, however, some only require as low as 3%. Take note that lower down payment mortgages usually require you to pay private mortgage insurance.
Origination fee and closing costs: There are lots of miscellaneous costs during the mortgage process. Most of them are rolled into your closing costs. These usually need to be paid upfront and can cost you around 5% of your mortgage. Some lenders will boast of “free” closing costs, but more often than not, these costs are simply rolled into your monthly payments.
Homebuyer assistance program: Most U.S. states – including New Mexico with its New Mexico Homeowners Assistance Fund – offer assistance programs for both repeat and first-time homebuyers. These programs are designed to help those struggling to land a mortgage by offering low mortgage rates, closing costs assistance, and down payment loans.

Application Process

Convenience is an important, yet often overlooked, aspect of the mortgage experience. We measure this through the following metrics:

Availability of online applications: With the shift to online mediums, most lenders are already expected to offer online applications. Not everyone can make it to branch locations, and being able to apply online is essential for convenience.
Rate transparency: It’s easier to shop around for lenders if you have access to their rates. Some lenders display their rates online, while others require you to enter your financial information or speak to a mortgage broker first.
Length of the application process: Most mortgages close within a few weeks. However, this isn’t always the case – some lenders can take months to close on your mortgage. Always ask your assigned loan officer about the average closing times so you can prepare your paperwork accordingly.

Customer Service and Ratings

You’re putting a lot of your money into a mortgage, which is why you want to make sure your chosen lender has good customer service. You need to be sure that you will be able to talk to someone if you ever encounter a problem. We used data from the Better Business Bureau and J.D. Power to evaluate New Mexico mortgage lenders in this regard.

The Better Business Bureau is a nonprofit organization that rates businesses by their level of trustworthiness. It assigns letter grades, ranging from F to A+, that were generated by examining how well the company handled customer complaints and the transparency of its business practices.

J.D. Power is a market research firm that focuses on compiling reports of customer feedback. It compiles surveys from consumers and publishes an annual study that recognizes the best-performing companies in each industry.

Access To Lender

We use two metrics to measure a lender’s accessibility:

The number of states it serves
The number of branches

The first point is important to keep in mind. If the lender doesn’t serve New Mexico, then you’ll need to find a new lender. The second point is primarily for those who prefer having face-to-face consultations with New Mexico mortgage brokers.

5 Best New Mexico Mortgage Lenders

There isn’t really an overall “best” mortgage lender because each prospective homebuyer has different needs. As such, we’ve come up with 5 specific lenders around New Mexico that each specializes and offers different loan products.

	Carrington Mortgage Services	Fairway Independent	Veteran’s United Home Loans	Bank of America	Better.com
Best for	Bad credit	Product availability	VA loans	Large loan amounts	Online convenience
Loans
Conventional loan	✓	✓	✓	✓	✓
FHA loan	✓	✓	✓	✓	✓
VA loan	✓	✓	✓	✓
USDA loan	✓	✓	✓
Conforming mortgage loan	✓				✓
Jumbo loan	✓	✓		✓	✓
Fixed-rate loan	✓	✓	✓	✓	✓
Adjustable-rate mortgage	✓	✓	✓	✓
Other criteria
Min. credit score (FICO)	FHA	500	580	640	600	620
VA	500	580	640	660	620
USDA	500	-	660	-	-
Conventional	620	620	660	620	620
Jumbo	-	-	-	720	720
Min. down payment	3%	3%	0%	3%	3%
BBB rating (A+ to F)	A+	A+	A+	A+	A+
JD Power rating (out of 1000)	741	825	-	806	806

1. Carrington Mortgage Services - Best For Bad Credit

Carrington Mortgage Services offers a wide range of financial products to borrowers who are seeking government-backed and conventional loans. It sets itself apart from its competitors by offering the lowest required FICO score for any of its government-backed loans. Negative credit events, which are usually frowned upon by lenders, are even acceptable as long as you meet the minimum FICO score of 500.

You can use its website or call the landline to get into contact with a mortgage broker. You can also use the website to enter your desired purchase price, down payment, and contact information. After securing a loan, you can also set up an online account on the website to manage your payments.

Availability: This mortgage lender offers home loans in 48 states, excluding Massachusetts and North Dakota.

2. Fairway Independent - Best For Product Availability

Fairway Independent, one of the leading mortgage servicers in the nation, is mainly known for offering a wide selection of mortgage options. It even offers renovation mortgages and home improvement loans that roll the home repair and upgrade costs into the home loan itself.

The only notable absentees in its impressive lineup of loan products are home equity loans. It’s also worth mentioning that Fairway Independent does not post its mortgage rates or fees online. Fortunately, it has a good balance between digital tools and personal customer service to help anyone looking to start a mortgage.

Availability: This mortgage lender operates in all 50 states and Washington, D.C. It doesn’t have any physical branches in Alaska or West Virginia.

3. Veterans United Home Loans - Best For VA Loans

Veterans United Home Loans might be the best option for borrowers looking specifically for VA loans with very competitive rates. Since 2018, it has been the biggest provider of VA mortgages in the United States. These loans do not require a down payment nor do they have a minimum loan amount.

While military affiliation is not required to avail of its loan products, VA loans are still its specialty. The staff of Veterans United Home Loans “has a strong understanding of the VA home loan process and the unique circumstances facing veterans, military members, and their families.”

To make up for only having 25 branches nationwide, Veterans United Home Loans has 24/7 telephone support alongside its online application portal. You can be sure that an expert will be available to consult with if you ever run into trouble completing the online loan application.

Availability: This mortgage lender only has physical branches in the following states: AL, AZ, CA, FL, GA, HI, ID, IL, KS, KY, MO, NC, NE, NV, OK, SC, TN, TX, VA, and WA. However, the entire process can be completed online.

4. Bank Of America - Best For Large Loan Amounts

Being one of the biggest mortgage lenders in the US, the Bank of America offers a variety of mortgages at different price points. There are even options for low-income and first-time buyers, including lower down payments and payment assistance/grant programs.

If you are an existing account holder enrolled in the Preferred Rewards Program, then you may even qualify for discounted origination fees and home equity interest rates. However, this program requires a minimum of $20,000 across all your BoA accounts.

Bank of America also offers jumbo loan options for those who are looking to purchase big properties. Take note that you will need a good FICO score and low debt to income ratio to qualify.

Availability: Bank of America has hundreds of branches all over the US, with 20 of them located in New Mexico.

5. Better.com - Best For Online Convenience

Better.com is a digital mortgage platform that aims to make the entire mortgage process as simple and accessible as possible. Applying for a mortgage with Better.com is as simple as heading over to its website and going through the simple step-by-step process. Every step, from pre-qualification to closing, can be completed through the website.

Do take note that Better.com does not offer VA or USDA loans. However, there is one major advantage: the promise of no lender fees. This means you won’t need to pay any extra fees for origination, application, processing, or underwriting – saving you money in the long run.

Availability: This lender operates in 46 states, including New Mexico. It has no physical branches and relies completely on an online process.

Closing Thoughts

Finding the right New Mexico mortgage lender goes beyond just choosing the lowest rates. You’ll need to look into the interest rates, availability, lender costs, and down payment requirements of each potential lender.

Buying a new home is a huge investment and responsibility. If you’re looking for more information and advice about buying homes in New Mexico, Wesley Mortgage, LLC is here for you! Email or phone us today to see what we can do for you.