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.
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:
There are lots of different types of mortgages being offered nowadays. Let’s quickly break down each one.
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.
Convenience is an important, yet often overlooked, aspect of the mortgage experience. We measure this through the following metrics:
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.
We use two metrics to measure a lender’s accessibility:
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.
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 |
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.
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.
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.
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.
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.
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.