Rhode Island has over 400 miles of coastline — that’s why its nickname is the Ocean State.
If seaside views are on your horizon, take a look at some of the best mortgage lenders in Rhode Island to help you land your dream home.
Best Mortgage Companies in Rhode Island:
The 5 Best Mortgage Companies in Rhode Island
Banks and online lenders can both provide you with a mortgage. There are so many choices, which makes it hard to know which is best. Lenders tailor products to fit a variety of consumers — consider your personal needs to find the lender that suits you.
Here are our top picks for mortgage lenders in Rhode Island.
1. Best for First-Time Home Buyers: Wells Fargo
First-time home buyers should take some time to explore special offers and home buyer programs. Wells Fargo is a great option if you’re a first-time buyer because it offers a First Mortgage loan program.
The program provides low down payment options for low-to-moderate-income families. It can also give you assistance with closing costs.
Wells Fargo offers branch locations so you can get help with your mortgage in person. Customer service support is available both online and by phone.
2. Best for Self-Employed Professionals: Better.com
If you’re self-employed, you can expect your mortgage application process to be a little bit different. Better is an online lender that customizes its process to your situation.
As a self-employed professional, you’ll be asked to submit 2 years of business tax returns to prove your income history. You can apply and manage the mortgage process completely online. The online resources will also help you learn about the mortgage process and how it will differ for your situation.
Better promises full transparency on process and pricing every step of the way.
3. Best Online Lender: Quicken Loans®
Quicken Loans® is at the top of the pack with a quick and easy online mortgage application process.
This starts with its interactive website options to help you select your mortgage type. You can also use Quicken Loans’ online resources to calculate your estimated monthly mortgage payments and determine what you can afford.
You’ll have access to a highly-rated customer service team available by phone or online if you need help at any point in the process.
4. Best for FHA Loans: Citi
FHA loans are mortgages issued by the Federal Housing Administration. These loans are designed for low-to-moderate income borrowers and have lower credit score and down payment requirements.
Citi’s mortgage representatives are there to match you with programs and offers to help you save on your mortgage.
Current Citibank customers can take advantage of Citibank’s relationship pricing to receive a lower interest rate. If you’re not a customer yet, you can speak with a representative to find out if joining Citibank to receive this benefit is right for you.
You can also take advantage of other Citi programs like its HomeRun Mortgage program. Down payments could be as low as 3% and there is no mortgage insurance requirement. The HomeRun Mortgage also has flexible credit guidelines.
Citi’s website can walk you through each option and its requirements. You can also connect with a mortgage representative to discuss product options.
5. Best for VA Loans: Veterans United
Veterans and service members may qualify for a VA loan. VA loans are issued by private lenders, but the program is backed by the U.S. Department of Veteran Affairs (VA).
Veterans United is dedicated to giving qualified veterans and service members an easy and affordable path to homeownership. You can start by using the Veterans United website to review the requirements for VA loans to see if you qualify.
The website also offers resources such as a monthly payment calculator to help you explore which options best fit your budget. When you’re ready, apply online to get prequalified for your mortgage.
Veterans United offers 24/7 access to its customer support team so you can rest easy knowing that you can get help with your mortgage at any time.
Your best mortgage options will be determined by the combination of the mortgage type and term. Your choice will depend on your situation and your goals. Take a look at the most common mortgage options to get started.
Choosing your mortgage type is a big decision. Each mortgage type has its own set of requirements and benefits.
- Conventional mortgages are not backed by the government, but you do still have to meet certain requirements. The credit score requirement is usually 620 for most lenders and will also have a minimum income requirement. Conventional mortgages are offered in a variety of mortgage terms.
- FHA loans are managed by the Federal Housing Administration but offered through FHA-approved lenders. These loans have lower minimum credit score and down payment requirements than conventional loans. To qualify for an FHA loan, you’ll have to meet the requirements set by the Federal Housing Administration and your lender.
- VA loans are available to individuals who meet the service requirements set by the U.S. Department of Veterans Affairs. The VA backs these loans, which come with low-interest rates. You can finance 100% of your mortgage — no down payment required.
Your mortgage term is the amount of time you will spend repaying your mortgage. It also determines the type of interest rate your mortgage has.
- 30-year fixed-rate mortgages require you to make the same payment at the same interest rate for 30 years. The interest rate of your mortgage will be locked in when you accept and finalize your mortgage term.
- 15-year fixed mortgage rates are similar to 30-year fixed-rate mortgages, but you’ll be paying your mortgage over 15 years instead of 30. You’ll pay less interest over time with this option because you’re making fewer interest payments overall. However, this also means that you’ll make higher monthly payments since you pay your mortgage off in half the time.
- 5/1 adjustable-rate mortgages (ARMs) have an interest rate that changes over time. You’ll pay the same interest rate for the first 5 years of your mortgage. After that, your mortgage rate will be subject to change once per year until your mortgage is paid off. An ARM can be a good option if you plan to pay off your loan within a few years.
Which Mortgage Lender is Best for You?
Still wondering how to choose the right mortgage lender for you? Here are a couple of things to consider:
- Mortgage programs: Be sure to take the time to review mortgage program options to see what you qualify for. Once you’ve found programs or mortgage types you’re interested in, be sure the lender you’re considering offers that mortgage product.
- Customer service: You’ll deal with your mortgage lender for a long time. It’s a good idea to read customer service reviews and ask friends and family to share their experiences. You can also reach out to a lender’s customer service team to ask questions and make your own judgment about the service you receive.
Lender Credit Score Minimums in Rhode Island
When you apply for a mortgage, expect your lender to look at your credit score. Lenders have minimum credit score requirements because they want to be sure you will be a reliable borrower. Your credit score can also impact the mortgage rate a lender will offer you.
Current Mortgage Rates in Rhode Island
Mortgage rates are constantly changing, much like the prices of stocks on the stock market. Benzinga monitors these trends and we update our current mortgage rate charts regularly.
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Average Days to Close on a Loan
After the seller of your home accepts your offer, you’ll begin the closing process. During this time, you’ll have a home inspection and home appraisal performed. You can use this information to negotiate with the seller on any necessary repairs that need to be made.
You’ll also work with your lender to finalize your mortgage, sign closing documentation and make the necessary payments to your lender.
Here are the average days to close for our recommended lenders.
Take some time to browse websites and see which mortgage programs and mortgage types make the most sense to you. Compare lenders and mortgage programs to see which can give you the lowest mortgage rate in Rhode Island.
When you’ve picked your lender, get preapproved and show sellers you can afford to buy their home.
Get Ready for Take Off
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