Best Mortgage Lenders in Virginia

The post Best Mortgage Lenders in Virginia by Sarah Horvath appeared first on Benzinga. Visit Benzinga to get more great content like this.

Rich in history and full of vibrant culture, Virginia is an excellent state to call home. Thinking about buying a home in Old Dominion? Our guide to mortgage companies and home buyer programs in Virginia will make getting your loan easier. 

The 6 Best Mortgage Companies in Virginia

Virginia has dozens of mortgage lenders offering many different loan options. Let’s take a look at a few of Virginia’s most notorious lenders and what they do best.

1. Best for Bank Statement Loans: Angel Oak Mortgage Solutions

Best For

Flexible Mortgage Options

Minimum Credit Score

600

get started securely through Angel Oak Mortgage Solutions’s website

More Details

Disclosure: Angel Oak Licensing and Disclosure Information

Avg. Days to Close Loan

30

Minimum Credit Score

600

1 Minute Review

Angel Oak Mortgage Solutions is a unique platform that allows you to get your mortgage with just a bank statement. However, the bank also allows you to take out loans using asset qualification, ITIN and more. You can also get FHA, conventional and jumbo loans along with loans for portfolio purchases.

Best For

• Bank statement home loans
• Multiple loan options
• Online information

Pros

• Asset qualifier home loans
• ITIN home loans
• Investor home loans

Cons

• Bank statement loans not available for all buyer types

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio mortgage loans. Among their many customized loan solutions is their Bank Statement product for self-employed borrowers in Virginia. This loan does not require tax returns and includes a 1099 Income option for 1099 earners. 

• Loan amounts up to $3 million
• 12 or 24 months personal or business bank statements
• Two years out of bankruptcy, short sale, foreclosure, or deed-in-lieu
• Owner occupied, non-owner occupied, second homes located in Virginia
• 1099 option available
• 40-year fixed interest only
• Delayed financing available
• Non-warrantable condos allowed

Angel Oak Mortgage Solutions offers a wide range of loan options allowing you to obtain any mortgage as long as qualification requirements are met. Virginia residents can also refinance into any of these loans. The customer service team is easy to reach via email, phone or the online contact form, and you can begin your journey by searching for a local advisor right on the website.

Angel Oak is headquartered in Atlanta, Georgia and is licensed in AL, AZ #0927070, licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, CO, CT, DE, DC, FL, GA #32379, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, NV, NH, licensed by the N.J. Department of Banking and Insurance, NM, NC, OH, OK, OR, PA, Rhode Island Licensed Lender, SC, TN, TX, UT, VT, VA, WA dba AOHL LLC, WI.

2. Best for First-Time Home Buyers: Rocket Mortgage

Best For

Online Mortgages

Minimum Credit Score

580

Get started securely through Rocket Mortgage’s website

More Details

Avg. Days to Close Loan

30

Minimum Credit Score

580

1 Minute Review

Rocket Mortgage is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Best For

• Homebuyers who are looking to complete the mortgage application process on their own
• Homebuyers who have found their dream home and are looking to move through the approval process quickly
• Homebuyers with good credit scores looking to review their mortgage options
• Current homeowners looking to refinance within the next few months

Pros

• Rocket Mortgage allows you to move at your own pace, guiding you through each step of the process. After you answer all the application questions, Rocket Mortgage lets you know if you’re approved and show your personalized mortgage recommendations
• You can submit checking and savings account information, tax returns and other financial documents online — a feature that sets Rocket Mortgage apart from online competitors
• RateShield allows you to lock in your Rocket Mortgage approved rate for up to 90 days
• The home loan application process can be completed in minutes, allowing you to find out if you qualify for a mortgage right away
• The online software allows you to navigate through the entire home buying process, from approval to home closing. Once you’re approved and you make an offer on your home, Rocket Mortgage offers online tools that will help you move through the rest of the closing process

Cons

• While Rocket Mortgage has customer specialists ready to answer your questions and provide guidance, if you prefer sitting across from a person when filling out financial forms, this lender might not be right for you
• You can’t easily view all of Rocket Mortgage’s home loan options prior to applying. It offers conventional, FHA, USDA and VA loans, but you’ll need to apply to find out more about the mortgage types within these offerings and which ones you’re eligible for

Buying a home for the first time can be confusing. Rocket Mortgage makes the process easier with its comprehensive Rocket Mortgage® platform.

Rocket Mortgage is the lender’s one-stop shop for nearly any type of mortgage loan. This mortgage company offers all types of government-backed mortgage loans, as well as conventional and jumbo lending solutions. When you apply for your loan, you’ll enjoy a simple and straightforward application that’s so user-friendly you can complete it on your phone or tablet. 

3. Best for Self-Employed Professionals: Wells Fargo

Best For

Minimum Credit Score

620

Compare Lenders

More Details

Avg. Days to Close Loan

90

Minimum Credit Score

620

1 Minute Review

Wells Fargo is one of the top national mortgage lenders. It offers a large selection of conventional purchase, refinance, jumbo, FHA, USDA and VA loans and also provides low down payment options for low-income buyers.

You can apply for a mortgage with Wells Fargo entirely online, in person at a Wells Fargo branch or by phone. Wells Fargo offers an electronic verification process for income and supplemental documents and a fully online loan tracker to update you on your progress every step of the way.

Here’s what you need to know about Wells Fargo at a glance.

Best For

• Those seeking a traditional lender with convenient locations
• Home buyers who need extra guidance during the mortgage application process
• Buyers without a large down payment
• Those on the hunt for the right mortgage product

Pros

• Can apply at your convenience (online or in person)
• Wells Fargo’s mortgage rates are published online
• You can submit all of your loan documents entirely online
• Wells Fargo’s Loan Tracker allows you to access your account at any time
• Many loan education resources and programs are available on the Wells Fargo website

Cons

• Doesn’t have the highest customer service rating
• Closing process runs longer than most other lenders
• Loan options aren’t immediately available without going through the application process

Self-employed individuals often have trouble documenting their income for their mortgage lender. Because your income can change from 1 month to the next, it can be very difficult to prove to your mortgage lender that you can afford your monthly mortgage payments for the next 15 years or more.

Wells Fargo offers 1 of the most lenient document application processes for small business owners and independent contractors. To qualify for a loan, all you need is your most recent profit and loss statement, as well as your last 2 months of bank account statements. Wells Fargo is also one of the largest physical lenders in Virginia, which means that you can pop into one of the bank’s 248 locations if you need help finishing your home loan application.

4. Best Online Lender: Close Your Own Loan

Best For

N/A

Minimum Credit Score

620

Get started securely through CloseYourOwnLoan.com’s website

Close Your Own Loan is an online mortgage lender offering a simple and streamlined mortgage process. When you get your loan through Close Your Own Loan, you can have an approval in as little as a few minutes. Close Your Own Loan is also 1 of the only online lenders to offer loan coordinators who you can speak with if you need help choosing a home loan type and term.

Close Your Own Loan is a great choice if you’re looking for the most affordable rate possible thanks to the lender’s Best Rate Guarantee. If you receive a lower-priced loan preapproval from a competing lender, Close Your Own Loan will pay you $1,000 in cash. 

5. Best for FHA Loans: Bank of America

Best For

Minimum Credit Score

620

Compare Lenders

Bank of America offers easy online FHA loan applications as well as in-person assistance. You can complete your Bank of America loan application online or in-person with the assistance of a loan officer at one of the lender’s 119 offices in Virginia.

FHA borrowers often need assistance with closing costs or covering their down payment. Bank of America offers a selection of loan estimators and cost analysis tools that you can use to more accurately estimate the amount of money you’ll need to close on your loan. From an average down payment calculator to a closing cost estimation tool, you’ll get a better idea of what you’ll owe with Bank of America’s FHA loans. 

6. Best for VA Loans: Veterans United

Best For

N/A

Minimum Credit Score

620

Get started securely through Veterans United Mortgage’s website

More Details

Avg. Days to Close Loan

30

Minimum Credit Score

620

1 Minute Review

Veterans United focuses on helping veterans and current service members find the right mortgage for their needs. It’s licensed in all 50 states and the District of Columbia and is the top VA lender in the country. If you’re currently serving or if you’re a veteran, Veterans United is worth considering due to its outstanding customer service and range of mortgage options.

Best For

• Current service members
• Veterans
• First-time home buyers

Pros

• 24/7 customer service
• Offers VA purchase and refinance loans
• Offers credit consulting through its Lighthouse Program

Cons

• Branches in only 18 states

If you’ve served in the military, you might qualify for a 0% down VA loan. Veterans United is one of the country’s best VA loan providers and offers a wide range of tools and calculators you can use to find the right loan for you. From easy online quotes to VA loan rate locks, Veterans United is a great place to start your mortgage loan research, especially as a first-time home buyer.

Veterans United specializes in custom VA loans. Its team is made up of former service members from every branch of the military. They can help you get your service documentation. If you don’t qualify for a VA loan, Veterans United can even help you get a conventional loan.

Mortgages Explained

There are multiple types of mortgage loans and the mortgage term and type you choose will influence how much you pay per month. You can break a mortgage down into 2 parts:

Mortgage Types

The type of mortgage loan you choose will influence which homes you can buy and what you need to qualify to take out a loan. Most mortgages are “conforming loans,” which means that your lender can sell them to Fannie Mae or Freddie Mac after you close.

If your loan isn’t a conforming loan, it’s probably a government-backed mortgage loan. Government-backed loans have insurance from a branch of the federal government. Government-backed mortgage loans are easier to qualify for in terms of credit and debt because this insurance makes them less risky for lenders. However, these loans also have stipulations that conforming loans don’t have. For example, you can only use an FHA loan to buy a home that you’re planning to live in for most of the year.

Here are 3 popular types of mortgages you may encounter:

Conventional Loans

Conventional loans are conforming loans that you can use to buy any type of home. To qualify for a conventional mortgage loan, you’ll usually need a credit score of at least 620 points and a down payment equal to at least 3% of your loan value.

FHA Loans

FHA loans are a type of government-backed mortgage loan that has insurance from the Federal Housing Agency. You can buy a home with a credit score as low as 580 points and a down payment of just 3.5%. Some lenders may even allow you to purchase a home with a score as low as 500 points if you have a down payment of at least 10%.

VA Loans

VA loans are government-backed mortgages with insurance from the Department of Veterans Affairs. These loans have no down payment requirement, which can be attractive if you don’t have at least 3% to put down. You must meet military service requirements before you can get a VA loan and these service requirements can vary by branch and year of service. 

Mortgage Terms

Your mortgage term is the length of time that you’ll make monthly payments on your loan. Most terms also give you a little information about your interest rate and whether your rate will ever change.

You can mix and match mortgage types and terms to fit your repayment needs. 

Here are some popular mortgage term options:

• 30-year fixed loan rates have an interest rate that stays the same throughout its 30-year term.  
• 15-year fixed-rate loans require you to make payments for 15 years before you own your home. Like its 30-year counterpart, 15-year fixed-rate loans have consistent interest rates.
• 5/1 adjustable-rate mortgages (ARMs) have an interest rate that goes up or down throughout the term. Your ARM’s rate will change as market rates change.

ARMs include an initial period of fixed interest. You’ll know how long this period lasts by checking the first number of your ARM — in this example, you’d get 5 years of fixed interest when you first make payments on your home loan. From there, your lender will readjust your interest rate on a set schedule, indicated by the second number. In this example, your lender will reassess your interest rate on a yearly basis. 

Which Mortgage Lender is Best for You?

With so many mortgage lenders, how can you choose the best mortgage loan for you? Should you go with the first company you find?

Remember that a mortgage loan can mean a 30-year commitment. Taking time to find the right lender for you can mean thousands of dollars (and a massive headache!) saved. Here are a few characteristics you should look for in a lender.

• Responsive customer service: A responsive customer service team is essential when it comes to getting a mortgage loan. Don’t be afraid to test a few lenders by firing off emails or phone calls to their customer service teams to judge their response times.
• Your chosen loan type: Not every lender offers every type of loan. Research all of your loan options before you start comparing lenders.
• An application process that suits you: Are you comfortable getting a loan entirely online if it means saving a few thousand dollars? Or would you prefer the personal assistance that comes with getting a loan through a bank or credit union with a location? Not every lender has physical branches — so if you don’t want to get your loan entirely online, make sure you’re choosing a lender near you. 

Lender Credit Score Minimums in Virginia

Whenever you use credit or take out a loan, you influence your credit score. If you have a higher credit score, you can qualify for more types of loans because you’re less likely to default on your home loan. You can improve your credit score by making credit card payments on time, avoiding using too much of your available credit each month and limiting the number of loans you’re applying for.

Mortgage lenders have minimum credit standards to limit their risk when they consider you for a mortgage. Know your credit score and make sure you meet your lender’s minimum before you apply for a loan. 

Current Mortgage Rates in Virginia

Average mortgage interest rates in your area will change over time. The rates you’ll see today might be much different than the rates you’d pay if you bought a home a year or even a week from now. Your local housing supply, bond interest rates and even the state of the economy as a whole can all influence what you’ll pay for your loan.

Most lenders allow you to lock in your interest rate when you get your loan preapproval. Let’s take a look at what you might expect to pay for your home in Virginia if you got your loan today. 

Average Days to Close on a Loan

After you have your loan preapproval paperwork and you reach an agreement with a home seller, it’s time to begin the closing process.

First, your lender will schedule an appraisal for your property, which will give you an estimate of what your home is worth. Next, you’ll have the option to schedule an additional inspection to make sure that your home is in the condition that your seller says it is. Finally, your lender will complete your loan paperwork and set up a closing meeting, where you’ll officially receive the keys to your new home.

The entire closing process can take anywhere from a few weeks to several months depending on your lender. Here are some of Virginia’s largest lenders’ average closing times. 

Find the Right Loan For You

So, what’s the best mortgage loan and the best lender? The specific answer will depend on your unique financial situation. If you’re still working on building credit, you’ll probably want to choose an FHA loan. If your main goal is to pay as little in interest as possible, a 15-year conventional loan might be right for you. 

Finding the right mortgage loan for you begins by educating yourself.

Frequently Asked Questions

The post Best Mortgage Lenders in Virginia by Sarah Horvath appeared first on Benzinga. Visit Benzinga to get more great content like this.