Who Are the Best Mortgage Lenders for First-Time Buyers?

For first-time homebuyers, finding the perfect mortgage may present some challenges. Obviously, you want to find a lender that can offer you the best rate, an amount that meets your needs, low costs, and that can work as quickly and efficiently as possible. You may also need a lender who participates in first-time homebuyer assistance programs and can help you move into your new house as soon as possible.

Some of the best mortgage lenders for first-time buyers include the following:

Quicken Loans. The largest FHA lender, Quicken Loans is known to respond quickly to its customers. Additionally, Quicken Loans provides online services.
New American Funding. This is an excellent lender for borrowers whose credit histories may not be sufficient to obtain loans from traditional banks.
SoFi. If you are young, self-employed, and have non-traditional income, SoFi might be the right lender for you.
CitiMortgage. If you are a first-time buyer seeking a low down payment and have nontraditional credit, CitiMortgage may be a good lender for you.
Bank of America. If you prefer a traditional bank that can provide a variety of mortgages and online services, Bank of America may be the best choice for you. Bank of America will not require mandatory mortgage insurance and also offers first-time home buyers mortgages with low down payments.

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The following are some tips to consider when selecting a lender for the first time:

You should know your credit score and history, as well as figures like your debt-to-income ratio. These are key factors when deciding how much you can borrow.

Ask your lender about their first-time home buyer programs which may offer you rate discounts, favorable down payment requirements, and educational resources to help you purchase an affordable, new home.

Ask your lenders whether they can offer government-backed home loans since they typically offer relaxed down payment and credit score requirements. They also are typically friendlier to first-time home buyers.

Compare current interest and annual percentage rates. Think carefully about the application, appraisal, and origination fees, among other costs, when determining which lender will offer you the best deal.

Compare different lenders' pre-approval options and choose the most suitable one for you. If you have trouble getting pre-approved, remember to ask your lender for help with the process.