Coastal beauty, low taxes and affordable housing make Delaware a wonderful place to call home.
Ready to buy a home in Delaware? Start with Benzinga’s guide to the best Delaware mortgage lenders.
The 2 Best Mortgage Companies in Delaware
Check out Benzinga’s picks for the best mortgage lenders in the First State before you buy a home.
1. Best Online Lender: Rocket Mortgage®
It’s hard to beat Rocket Mortgage®when it comes to online lenders. Rocket Mortgage® is the lender’s online platform.
It offers a streamlined application, shows you custom recommendations and makes it simple to get a preapproval letter.
You can reach Rocket Mortgage® experts by phone or via chat to get your questions answered.
Rocket Mortgage® offers conventional, FHA and VA mortgage products.
2. Best for VA Loans: Veterans United
Veterans United makes it easy to get a VA loan. You can start a quote easily from its website. The site also offers educational materials to help you learn more about the VA loan process.
Veterans United is the top VA lender in the country due to its outstanding service. If you have questions, you can get in touch with customer service representatives at any time. Veterans United offers a range of VA loans, including VA jumbo loans, VA cash-out refinance loans and loans to help you refinance for better mortgage terms.
Learning about mortgages can help you make an informed decision. Here are a few important mortgage concepts.
Lenders don’t make all the rules when it comes to mortgages. Federal agencies make the rules for a few specific types of loans. Here are a few mortgage types you’ll see when you start loan shopping.
- Conventional loans aren’t overseen by a government agency. Lenders have a lot of leeway when it comes to how these mortgages are structured. This means that conventional loans can require a higher credit score or down payment than other types of mortgages. This will vary by lender.
- The Federal Housing Administration oversees FHA loans. These loans were created to make home loans accessible to a wider range of borrowers. To achieve that goal, these loans have low credit score and down payment requirements.
- The Department of Veterans Affairs regulates VA loans. These loans are a benefit for veterans and those currently serving. There’s typically no down payment requirement and there’s some flexibility in required credit score.
Your mortgage term refers to how your home loan is structured. Here are a few options you might see:
- A 30-year fixed-rate mortgage offers low monthly payments that never change. The payment is always the same because the interest rate never changes. Your loan payments are scheduled over 30 years. After 30 years of payments, you’ll own your home outright.
- A 15-year fixed-rate mortgage has higher monthly payments than a 30-year mortgage. The upside to this type of mortgage is that you pay less in interest on your loan. The interest rate and your monthly payments never change.
- A 5/1 ARM is an adjustable-rate mortgage. That means that the lender can change your interest rate, which changes your monthly payment. These loans often start with a fixed-rate period. A 5/1 ARM starts with a 5-year fixed-rate period. After that, the lender can adjust your rate annually.
Which Mortgage Lender is Best for You?
What should you look for in a great lender? Here are a few qualities to consider.
- Expertise: Lenders sometimes have areas of specialization. For example, Veterans United focuses on VA loans. If you know the type of loan you want, look for a lender with expertise in that area. If you’re interested in Delaware’s home buyer programs, look for a lender that regularly works with those programs.
- Service: Does the lender respond to you promptly? Do its service representatives make recommendations based on your needs? What hours are its representatives available? Look for a lender that offers outstanding service.
- Technology: Lenders can use technology to speed up the mortgage process and to stay in touch. Does the lender you’re considering have a digital mortgage option? Does it have a mobile app? Ask prospective lenders about technology options that are important to you.
Lender Credit Score Minimums in Delaware
Your credit score is a snapshot of your credit history. The higher your 3-digit credit score, the better. Lenders use your credit score to determine your loan eligibility and interest rate. Here are the minimum credit scores required by several Delaware lenders.
Current Mortgage Rates in Delaware
Mortgage rates change frequently — sometimes once per day or more. Lenders change rates in response to what’s happening economically. When the economy is doing well, interest rates tend to be higher because there’s more competition for limited funds. When the economy slows down, interest rates drop to entice people to borrow money.
At Benzinga, we update our rates frequently to reflect the most relevant information.
|7/1 ARM (adjustable rate)||N/A||N/A|
|5/1 ARM (adjustable rate)||N/A||N/A|
Average Days to Close on a Loan
The closing process is the time from when you submit your application to when you get the keys to your new home. The process can take a few weeks or more because lenders have to verify all of your information and confirm the value of the home with an appraisal. Once that is complete, the lender will let you know whether you’re approved.
If you’re approved, you and your real estate agent will schedule a meeting for you to sign your documents. You’ll also pay the balance of your down payment.
Here’s how long that process typically takes for several Delaware lenders.
Find the Right Mortgage
Many mortgage types could work for you, so consider what is most important. Do you need a low monthly payment? Do you want to avoid more interest than you have to? Do you plan to move in a few years?
Start with your budget and decide what you can afford. Choose a mortgage that fits comfortably into your budget. Keep in mind that you’ll also need to pay property taxes and homeowners insurance, and homes require upkeep and repairs.
Start with our recommended mortgage providers, compare your options and find the right mortgage for your home.
Get Ready for Take Off
Rocket Mortgage® is an online mortgage experience developed by the firm formerly known as Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.
You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.