Rhode Island Mortgage Lender

    Finding The Best Rhode Island Mortgage Lender

    The median home price in Rhode Island is $261,900, only about $7,000 lower compared to the national value. This means looking for a bargain-priced home might be tougher here compared to cheaper states. To save money, you need to search for a good Rhode Island mortgage lender that can give you the best rates. 

    Find out the top four Rhode Island mortgage lenders on this list! In addition to our picks, we also provide the five key factors that make up a good mortgage lender.

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    Choosing A Mortgage Lender 

    We compiled this list of the best mortgage lenders in Rhode Island with five key criteria in mind. Here, we provide them in case you want to do your own mortgage lender research.

    Mortgage Products Offered

    There are many mortgage loan types offered by lenders. These loan products all cater to different needs of different consumers, so a loan that’s good for someone else may not be the right solution for you. 

    To help you choose the right loan product that fulfills your specific needs, here are some common loan types explained:

    • Conforming mortgage: Conforming mortgages are the most common type of mortgage you’ll find. These loans are called “conforming” because they are all valued under Rhode Island’s lending limit of $548,250.
    • Jumbo mortgage: On the opposite end of the scale, jumbo loans offer you the ability to exceed local lending limits. These loans are typically used to buy more expensive homes, but they come with higher rates.
    • Fixed-rate mortgage: Interest rates on this conventional loan will remain unchanged regardless of market fluctuations. The stability of fixed-rate mortgages makes them good for first-time homeowners. 
    • Adjustable-rate mortgages (ARMs): An ARM’s mortgage rates readjust annually based on market fluctuations. However, they usually have relatively low fixed rates in the first 3 to 10 years. 
    • Government mortgage: Government loans are provided by the Department of Veterans Affairs, the Federal Housing Authority, and the U.S. Department of Agriculture. These loans usually feature low interest rates and reduced down payment requirements to eligible borrowers.
    • Mortgage refinance (refi): Getting a refi means taking out a new home loan to pay off your current one. Refis help you save by changing your loan terms or securing lower refinance rates.
    • Home equity lines of credit (HELOC): This loan gives you a credit card-like source of funds with your home as collateral. 

    Affordability 

    Rhode Island mortgage rates constantly change based on market conditions, so it’s not a reliable way to measure affordability. For a better measure, we examine the ease of qualifying for mortgage loans with four factors:

    • Minimum credit score: Your FICO credit score measures your likelihood of paying debts on time. Lenders usually require a minimum credit score of 620 to qualify for a home loan, but they may give you a lower requirement for easier qualification. 
    • Minimum down payment: Most lenders require a 20% down payment for qualification, but some allow you to pay as little as 3%. However, low--down-payment loans usually require you to take private mortgage insurance. 
    • Closing costs: Most of the fees you incur during the mortgage process are rolled into your closing costs. You usually need to pay up to 5% of your total loan amount upon closing, but your mortgage lender may offer to fold these costs into your interest payments. 
    • Homebuyer assistance programs: A majority of U.S. states offer various programs to help their residents purchase homes. These programs usually come in the form of closing cost grants and down payment assistance aimed at repeat and first-time homebuyers.

    Application Process

    The best mortgage lenders help their consumers by providing a convenient application process. We rate the quality of a mortgage lender’s application process with three factors:

    • Online capabilities: Most lenders nowadays are expected to have a way for consumers to apply online. Online application capabilities are especially beneficial to consumers who can’t apply directly with a loan officer. 
    • Online rate transparency: Easily accessible rate estimates are essential for consumers who want to compare rates between lenders. Depending on the lender or bank, some may display rates on its website while some others require borrowers to speak with a loan officer or a mortgage broker. 
    • Length of the application process: Most mortgages typically close within weeks. However, there may be cases where your loan can take several months to finally clear. Ask your loan officer or broker about the lender’s average closing time so you have a better picture of your lending timeline.

    Customer Service And Ratings

    Excellent customer service makes sure that any problems with your loan can be cleared up as soon as possible. We measure customer service with data from two organizations: J.D. Power and the Better Business Bureau (BBB). 

    He BBB rates a company’s trustworthiness with a letter grade ranging from A+ to F. Factors examined in its review include the existence of regulatory actions, response to consumer complaints, and business transparency.

    Meanwhile, J.D. Power rounds up consumer survey results to rate a company’s customer satisfaction. It then publishes all findings in an annual study that ranks and awards the best-scoring companies. 

    Access To Lender

    Lender accessibility is a pivotal criterion. If a lender or bank doesn’t serve your area, then you can’t take advantage of its services – meaning you need to look for other lenders. 

    The second point of accessibility is the number of branches a lender operates. If a lender or bank has many branches over multiple states, borrowers who prefer in-person lending will have an easier time meeting with a loan officer or broker. 

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    The Best Rhode Island Mortgage Lenders

    With the aforementioned criteria in mind, we’ve chosen four of the best Rhode Island mortgage lenders. Each of these lenders concentrates on one aspect of mortgage lending, so identify your needs and choose the lender that can best cater to them.

    Here is a quick overview of their key details:

    Fairway IndependentRocket Mortgage by Quicken LoansNavy Federal Credit UnionLoanDepot
    Best forMortgage product selectionOnline convenienceMilitary membersRefinances
    Loans
    Conventional loan
    FHA loans
    VA loan
    USDA loan
    Jumbo loan
    Fixed-rate loan
    Adjustable-rate mortgage
    Mortgage refinance loans
    Home equity loans
    Other criteria
    Minimum FICO credit scoreFHA/VA/USDA640580-620580
    VA640620-620
    USDA620---
    Conventional620620620620
    Minimum down payment3%3%0%5%
    BBB rating (A+ to F)A+A+N/AA+
    JD Power rating (out of 1000)865883867844

    1. Fairway Independent – Best Loan Selection

    Fairway holds an advantage over most of its peers due to its wide variety of loans and financial products. This full-service mortgage lender offers a complete suite of government and conventional mortgages as well as renovation loans and home equity loan products. Whatever your home buying needs are, it’s likely Fairway can help you with it.

    However, rate shopping at this company might be a little tougher because it doesn’t publish rates online. You need to speak with a loan officer or start an application to get rate estimates. 

    Lender availability: Fairway offers mortgage loans and operates over 700 branches nationwide. 

    2. Rocket Mortgage By Quicken Loans – Best Online Lender 

    Rocket Mortgage by Quicken Loans is the best option if you’re a self-service user. Through Rocket’s website, you can finish an application and within thirty minutes. Moreover, you don’t have to search for physical documents since it can look up your financial information to auto-fill your forms. 

    Despite being on a fully online platform, you can still get assistance from a loan officer through online chat or a phone call. However, this company doesn’t operate physical branches, so you can’t get a face-to-face consultation with a mortgage broker.

    Lender availability: Rocket Mortgage by Quicken Loans services home loans all across America through its online platforms. 

    3. Navy Federal Credit Union – Best For Military Members

    Navy Federal has almost 9 decades of experience in serving the financial needs of the military community. While it primarily offers VA loans, it also provides conventional and jumbo mortgages to its members.

    One more thing that sets Navy Federal apart from other VA lenders is its two proprietary programs: The HomeBuyers Choice and Military Choice mortgages. Both of them are zero-down loans without mortgage insurance aimed at first-time homebuyers and veterans, respectively. In addition to the zero down payment requirement, any closing costs and funding fees can be rolled into interest payments – minimizing the amount of cash you need at closing. 

    Lender availability: Navy Federal is licensed to service mortgages nationwide and operates 322 branches in 30 states.

    4. LoanDepot – Best For Refinancing

    With refinances making up over 60% of its total mortgage volume, LoanDepot places itself as one of the market’s best refinance specialists. 

    This distinction is well-earned, especially with its “lifetime guarantee”. The company guarantees free lender costs if you refinance a LoanDepot mortgage. Moreover, any appraisal expenses will later be reimbursed – meaning you can refinance at a minimum cost. 

    Lender availability: Nationwide LoanDepot consumers can apply for loans online or through its mortgage brokers located at one of its 200 branch offices.

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    Closing Thoughts 

    You need a good mortgage lender if you’re planning to find the best deal on a new home in Rhode Island. Good mortgage lenders help you by providing competitive rates so you can capitalize on good housing deals. 

    If you need more information and advice on mortgage lending in Rhode Island, contact Wesley Mortgage, LLC today! We’re ready to help you navigate the home buying process to make your dream home in Rhode Island come true!

    Written By Ed Wallace
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