Connecticut boasts top universities, media companies and several Fortune 500 companies. Its quality of life ranks at the top in the country with highly-ranked schools and low crime rates.
Looking to call Connecticut home? Start with our guide to the best mortgage lenders in Connecticut to buy or refinance your property.
The 5 Best Mortgage Companies in Connecticut
Comparison shopping is essential when you get a mortgage. Here are 5 of our top picks for the best mortgage companies in Connecticut.
1. Best for First-Time Home Buyers: People’s United Bank
People’s United Bank is a regional bank with branches throughout Connecticut. Its personal approach to the mortgage process makes it a great fit for first-time home buyers.
A dedicated mortgage expert can help you refine your short- and long-term goals for homeownership and pinpoint the right mortgage product.
People’s United Bank also has educational resources on its website, including a downloadable first-time home buyer guide. People’s United Bank also offers conventional and FHA mortgages.
2. Best for Self-Employed Professionals: Luxury Mortgage
It can be tough for self-employed professionals to qualify for a mortgage. Tax returns don’t show your full income due to tax deductions and income may be erratic. Luxury Mortgage can help.
It offers a bank statement qualifier mortgage to review your bank statements and total income to determine your take-home pay.
You can qualify with a credit score of 580, but a down payment of at least 20% is required. You can use personal or business bank statements to qualify. Luxury Mortgage also offers other mortgage options like FHA and asset qualifier loans.
3. Best Online Lender: Quicken Loans®
Quicken Loans offers a seamless digital mortgage experience through Rocket Mortgage® by Quicken Loans®. The platform allows you to complete your application online, review customized loan options and follow every step of the process online.
If you need extra help, you can talk to a loan expert by chat or phone.
Quicken Loans provides award-winning service both during the application process and after your mortgage is in place.
It has a variety of mortgage products, including conventional, FHA and VA loans.
4. Best for FHA Loans in Connecticut: First World Mortgage
First World Mortgage is 1 of the top lenders in the state. It has extensive experience with FHA loans, which offer low down payment requirements. First World has offices throughout Connecticut. You can also contact a loan officer by phone.
First World Mortgage has an online preapproval process and application. Its loan officers walk you through the loan process to choose the right mortgage, whether it’s an FHA loan or something else. First World Mortgage also offers conventional, USDA, VA and CHFA loans. CHFA loans are loans affiliated with Connecticut’s first-time home buyer programs.
5. Best for VA Loans: Veterans United
Service members face unique challenges when it comes to homeownership. You may move frequently, and it can be challenging to save up enough for a down payment. Veterans United is the top VA lender in the country and it can help you secure a VA loan.
Veterans United offers outstanding customer service. Representatives are available around the clock to answer your questions.
It has advisors from every military branch to ensure excellent service to veterans. Customers have left thousands of reviews that praise Veterans United’s stress-free, supportive mortgage process.
Curious about how mortgages work? Here’s a quick guide to mortgage types and terms.
Your mortgage type refers to whether your mortgage is associated with a government program. Here are common mortgage types:
- Conventional mortgages aren’t part of a government program. This means that lenders have a lot of latitude when it comes to how the mortgages are structured and who can qualify.
- The Federal Housing Administration is a government agency that regulates FHA loans. These loans are offered by approved private lenders. FHA loans allow down payments as low as 3.5% if you have a credit score of 580 or higher. Borrowers with credit scores of 500 to 579 may qualify with a 10% down payment.
- The Department of Veterans Affairs regulates VA loans. These loans are available to veterans and current service members who meet service requirements. You typically don’t have to make a down payment with these loans, and there’s also some flexibility with credit history.
Your mortgage term is how long your payments will last if you only make the required payments. Here are a few common mortgage terms.
- 30-year fixed mortgages have a 30-year payment schedule. At the end of 30 years, your home is paid in full. A fixed rate means that your interest rate never changes. That means that your required monthly payments won’t change either.
- 15-year fixed-rate mortgages have a 15-year payment schedule. Your monthly payments are higher than they would be with a 30-year mortgage but you pay less in interest over the life of your loan.
- 5/1 adjustable-rate mortgages (ARMs) can last for a variety of years. What sets them apart is that the lender can change your interest rate, which also changes your monthly payment. Most ARMs start with a fixed rate. A 5/1 ARM has a 5-year fixed rate period. The lender can change your rate once per year.
Which Mortgage Lender is Best for You?
How do you find the best mortgage lender? Contact at least 2 or 3 lenders and compare the qualities that are important to you. Here are a few qualities to consider.
- Local expertise: A national lender can provide excellent service, but a local lender understands the housing market in your area. Is having a local lender important to you?
- Up-to-date technology: Some lenders offer a digital mortgage process and mobile apps. How important is technology to you? Do you prefer a lender with chat capabilities or are you fine with picking up the phone?
- Excellent reputation: Your mortgage is a big deal. Trust it to a lender with a stellar reputation. Look for awards from 3rd-party sources, rave customer reviews and a great rating from the Better Business Bureau.
Lender Credit Score Minimums in Connecticut
Lenders look at your credit history to predict how risky it is to lend you money. Your credit score is a computer-generated 3-digit number that sums up how you’ve handled credit.
You’ll need to meet your lender’s minimum credit score to qualify for a mortgage. Lenders also use your credit score to decide on your interest rate.
|Lender||Minimum credit score required|
|Caliber Home Loans||620|
Current Mortgage Rates in Connecticut
Lenders change interest rates frequently — sometimes as often as multiple times per day to reflect what’s happening with the economy. When the economy slows down, lenders often lower rates to encourage people to borrow. When the economy is doing well, lenders may raise rates since there’s more competition for funds.
We update our rates frequently to reflect the most relevant data. Here are the current mortgage rates in Connecticut.
|7/1 ARM (adjustable rate)||0%||0%|
|5/1 ARM (adjustable rate)||3.075%||3.157%|
Average Days to Close on a Loan
After you submit your formal mortgage application, your lender needs to verify everything. It might come back with questions. It will often order an appraisal, which is when a trained professional assesses the value of your home. You’ll also want to get a home inspection so you know exactly what you’re buying.
Once your lender verifies everything, it will let you know whether you’ve been approved. The next step is a closing meeting where you sign all your loan documents and pay any funds due. Here are the average days to close for several Connecticut lenders.
Find the Right Mortgage Today
Finding the right mortgage takes time. Contact multiple lenders and consider which qualities are most important to you.
The right lender will guide you through the process to secure a mortgage that’s perfect for you.