Minnesota, aka the Land of 10,000 Lakes, is a state full of attractions, from the Mall of America to lakes, forests and great live entertainment events. Ready to buy a home there? We’ve got your guide to finding the right Minnesota mortgage lenders right here.
Best Mortgage Companies in Minnesota:
The 5 Best Mortgage Companies in Minnesota
You want the best mortgage lender that meets your needs. This applies whether you’re looking into specific home buyer programs or if you’re not even sure what you’re looking for yet. Here are a few lender options to get you started.
1. Best for Bank Statement Loans: Angel Oak Mortgage Solutions
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. This loan does not require tax returns and includes a 1099 Income option for 1099 earners in Minnesota.
- 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 Minnesota
- 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. Minnesotans 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 Online Lender: Quicken Loans®
If you’re looking for an online lender that can get you through the process quickly, Quicken Loans may be right for you.
You can start your purchase or refinance mortgage process right from its website.
You’ll also find a number of resources on the website to answer most questions you might have about the mortgage process. Still need help?
Fortunately, this lender is known for its customer service and offers dedicated customer service professionals in several departments.
3. Best for First Time Home Buyers: Bank of America
Bank of America is the perfect lender for many first-time home buyers. This lender’s website is chock full of resources to help you become comfortable with the home-buying process before you even begin. You can explore the various mortgage types, how to get preapproved, how to apply for a mortgage and more. Bank of America even offers its First-Time Home Buyer Online Edu-Series™ to make the whole process easier for you.
When you’re ready, you can use Bank of America’s Digital Mortgage Experience® to take control of your mortgage online. It provides experienced lending officers, the ability to lock in your mortgage rate and customized terms to lower your costs.
4. Best for FHA Loans in Minnesota: Guaranteed Rate
If you’re interested in an FHA loan, it’s important that you work with a lender that understands the process. Guaranteed Rate specializes in FHA loans and has helped borrowers secure FHA loans since 2000.
Its website can walk you through the basic requirements for an FHA loan as well as the advantages of an FHA loan. If you decide to apply for a Guaranteed Rate loan, its loan experts will reach out to review your options and help you make the best choice.
Guaranteed Rate promises low rates, cutting-edge technology and expert advice. While this lender offers the ability to complete your mortgage 100% online, you’ll also have access to several branch locations throughout Minnesota.
5. Best for VA Loans: Veterans United
If you’re looking into VA loans, it’s a good idea to choose a lender that thoroughly understands the process. Veterans United specializes in helping qualified veterans and service members achieve homeownership. You can start by visiting the Veterans United’s website to review the qualifications for a VA loan. Its website also offers digital calculators that can help you determine the current VA loan rates and how much you can afford.
When it comes to Veterans United’s customer service team, you can expect access to help 24/7. Veterans United’s staff members are made up of service members from all branches of the military.
The first thing you should know about mortgages is that they’re not all the same. It’s crucial to find a lender that can help you understand your options and match you with a product that makes the most sense for your needs. There are 2 things to consider when you’re looking at your mortgage options:
- Your mortgage type is the mortgage program you use, ranging from a conventional mortgage to government-backed options.
- Each mortgage type carries a mortgage term. This is the length of time you’ll repay your mortgage.
Here are 3 common mortgage types:
- Conventional loans are loans that aren’t part of any specific government program. There are several different sets of guidelines for conventional loans, so there’s no single set of requirements for borrowers. In general, conventional loans have stricter credit requirements than government-backed loans like FHA loans. In most cases, you’ll need a credit score of at least 620 and a debt-to-income ratio of 50% or less.
- FHA loans are part of a mortgage program regulated and insured by the Federal Housing Administration. These loans come with benefits, including lower credit score requirements than most conventional loans. You may qualify for an FHA loan if you have debt or a lower credit score. You might even be able to get an FHA loan with a bankruptcy or other financial issue on your record.
- VA loans are another government-backed mortgage program (by the Department of Veterans Affairs (VA). You must meet service requirements to qualify for the loan. You can take advantage of lower interest rates, more lenient borrowing requirements and no down payment requirement.
Some common mortgage terms are:
- 30-year fixed loan: Your interest rate will remain the same for the lifetime of your loan. Since your interest rate stays the same, your monthly payments will remain the same as well. Thirty-year fixed loans allow you to repay your loan with the same payment every month for 30 years.
- 15-year fixed loan: You’ll have a fixed interest rate with this mortgage term as well. If you choose this mortgage term, you’ll make the same payments for 15 years until your mortgage is paid off.
- 5/1 adjustable-rate-mortgages (ARMs) allow you to benefit from a fixed interest rate for the first 5 years of your mortgage. After the first 5 years, your interest rate can change once per year until your mortgage is paid off.
Which Mortgage Lender is Best for You?
You already know that there are a wide variety of mortgage types. There is also a wide variety of mortgage lenders. Here are some things to consider as you choose your mortgage lender:
- Costs and fees: When you’re comparing lenders, you should be sure to ask about the costs associated with getting the loan you’re considering. Your lender should be able to explain all of the fees it charges and let you know when the fees are due.
- Programs: You’ll want to choose a lender that can offer the mortgage programs that you’re interested in. If you need help choosing the right mortgage, consider whether the lender is willing to help match you with the right mortgage for your needs.
Lender Credit Score Minimums in Minnesota
Your credit score is an important piece of information for lenders. Your credit score is based on information collected about you from creditors through the 3 major credit bureaus — Equifax, TransUnion and Experian.
Your credit score comes from the information on your credit report. Credit reports, which show previous and current credit accounts and your payment history, are detailed summaries of your borrowing history. Your lender uses your credit report and score to determine whether to lend you money.
Current Mortgage Rates in Minnesota
You can expect mortgage rates to change frequently, so it’s important to keep an eye on this. Mortgage rates are based on the current market, your personal factors like your credit score, your loan type and down payment amount. We constantly update our mortgage rate tables to reflect the most recent data.
Average Days to Close on a Loan
Even after you’ve found your home and your offer has been accepted, you won’t be able to move in just yet. The last step of the process is closing on your home. Here are a few things you can expect to receive or will need to show proof of during this time:
- Paperwork: You’ll be given a lot of paperwork to read through and sign before you can get your keys.
- Payments: This is also the time you’ll make payments, including your down payment and any closing costs.
- Proof of insurance: You can’t forget to purchase an insurance policy for your new home. In fact, your lender will require proof of an adequate homeowners insurance policy before it will fund your loan.
Get the Best Minnesota Mortgage Lender
Ultimately, finding the right lender is about finding the right fit for you. Shop around for the right mortgage rate, best customer service options and type of mortgage you need available through lenders.
Finally, narrow down what you’re looking for in your new home and how much those homes cost in your desired area. Figure out how much you can afford to put toward a down payment and get ready for an exciting experience!
Get Ready for Take Off
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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.