South Dakota offers a slew of mortgage lenders to help you buy a new home or refinance your current home. Don’t miss out — take a look at Benzinga’s guide to the best South Dakota mortgage lenders. It’ll help you get started and launch your mortgage search.
Best Mortgage Lenders in South Dakota:
The 5 Best Mortgage Companies in South Dakota
You want to work with the best mortgage company possible. Here are our top 5 picks for your best choices in South Dakota.
1. Best for First-Time Home Buyers: Bank of America
Bank of America is a great option for many borrowers, but especially first-time home buyers. It offers the comfort of a familiar traditional bank setting and plenty of online resources.
You can use the Bank of America website to explore mortgage types, learn how to get preapproved or apply for a mortgage and more. It even offers an online First-Time Homebuyer Online Edu-Series™ to give you a structured way to learn everything you need to know about buying your first home.
Bank of America also provides a patented Digital Mortgage Experience®. You’ll have access to experienced lending officers ready to help you and additional perks like the ability to lock in your mortgage rate.
2. Best for Self-Employed Professionals: Better.com
Better, an online lender, can help you no matter your circumstances.
Its mission is to make homeownership simpler, faster and more accessible across the U.S.
Better can give you the resources you need to navigate the mortgage process as a self-employed professional.
Get a quick loan estimate and you’ll experience complete transparency.
Better’s loan officers don’t work on commission, so you can trust that this lender will find the best loan for you.
3. Best Online Lender: Quicken Loans®
Quicken Loans provides a quick, easy online mortgage experience. You can use its website to navigate and compare your mortgage options. It even allows you to narrow down the right mortgages for purchase or refinancing.
Its site also serves as a resource for answers to common questions and its mortgage calculator can help you estimate your monthly payments.
Call or chat online with a Quicken Loans customer service agent for additional support.
4. Best for FHA Loans in South Dakota: Guaranteed Rate
Home buyer programs can be confusing, but Guaranteed Rate has helped borrowers secure FHA loans since 2000. Use the Guaranteed Rate website to learn more about the basic requirements and advantages of FHA loans and other home buyer programs.
This lender promises low rates and cutting-edge technology. You’ll also benefit from loan experts who can help you navigate the mortgage process.
Speak with a loan expert to discuss your mortgage options and learn more about FHA loans.
5. Best for VA Loans: Veterans United
Veterans United specializes in helping qualified service members and veterans purchase a home. This lender even has military advisors on staff to help raise awareness and educate veterans about VA loans and homeownership.
The Veterans United website includes the service requirements and benefits of a VA loan. You’ll also find resources to help you better understand current interest rates, what you can afford and more.
Start with an online quote, then contact the customer service team 24/7 to answer any questions you have about the mortgage process.
It’s important to understand all mortgages are not the same. Finding the right mortgages takes time, consideration and sometimes assistance from a knowledgeable loan advisor.
Familiarize yourself with the basics before you move forward in the mortgage process. Let’s start with mortgage types and terms:
- You’ll need to choose a mortgage type, which can range from conventional mortgages to government-backed options.
- Your mortgage type will carry a mortgage term. This is the length of time that you’ll repay your mortgage. Your mortgage term will also include the type of interest that you’re paying on your mortgage.
There are several mortgage types out there. Here are 3 common mortgage types:
- Conventional loans are simply mortgage loans that aren’t part of any specific government program. There’s no specific set of guidelines or requirements for a conventional loan. Check with your lender to see what its requirements are. You can expect a required 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. The funding for FHA loans comes from private lenders. Some of the benefits are down payments as low as 3.5% and lower credit score minimums. FHA loans also come with maximum loan amounts that vary by county.
- VA loans are part of a mortgage program backed and guaranteed by the Department of Veterans Affairs. The VA sets service requirements to qualify for a VA loan. The benefits of VA loans include lower interest rates, more lenient borrowing requirements and no down payment requirement.
You should also familiarize yourself with common mortgage terms, including:
- 30-year fixed loan: This mortgage term means you’ll pay back your mortgage over 30 years. A fixed-rate loan means that your interest rate will remain the same throughout the lifetime of your loan. This allows your monthly payments to remain the same.
- 15-year fixed loan: A 15-year fixed loan is similar to a 30-year fixed loan. You’ll benefit from the same interest rate for the lifetime of your mortgage with consistent mortgage payments that you can work into your budget.
The difference between a 15-year fixed loan and a 30-year fixed-rate loan is that you’ll repay your mortgage over a period of 15 years instead of 30. This may allow you to pay less interest over time since you’re making fewer total mortgage payments. Your monthly payments will be higher than a 30-year fixed loan.
- 5/1 adjustable-rate-mortgages (ARMs): This hybrid mortgage term allows you to benefit from a fixed interest rate for the first 5 years of your mortgage. Your interest rate may change once per year after 5 years. It can continue to change each year until your mortgage is completely paid off. You’ll encounter similar mortgage terms, like the 3/1 ARM, 7/1 ARM and 10/1 ARM.
Which Mortgage Lender is Best for You?
Finding the right mortgage lender is just as important as finding the right mortgage type. Here are some qualities to look for in your lender:
- Honesty: A good lender will be upfront with you about the costs and fees that come with its mortgages.
- Helpful advice: Your lender should be able to help you understand your options and how to make the right decision for your needs.
Lender Credit Score Minimums in South Dakota
Your credit score will be looked at by your lender when you apply for a mortgage. Your credit report is based on information collected about you from creditors through the 3 major credit bureaus — Equifax, TransUnion and Experian. The information collected includes information on your credit report.
Your credit report is a detailed report of your financial history, including your payment and borrowing history. Lenders use this information to determine if you are a reliable borrower.
Current Mortgage Rates in South Dakota
Mortgage rates change frequently with the current market. Personal factors also play a part in mortgage rates a lender can offer you. Benzinga constantly monitors mortgage rate fluctuations and we update our mortgage rate tables to reflect the most recent data.
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Average Days to Close on a Loan
The closing process is the last step before you can move into your new home. During this time you can expect:
- Paperwork: You’ll have plenty of paperwork to read through and sign during this time.
- Payments: You’ll need to make your down payment and pay for any closing costs.
- Proof of insurance: Your lender won’t be able to release the funds for your loan until you show proof of your homeowners insurance policy.
Choose the Best Lender in South Dakota
Compare lenders and mortgage types before you make a final decision. Be sure the lenders you consider offer the mortgage types you’re interested in.
Apply for preapproval after you choose a program and you’ll be on your way to buy or refinance a home. Start with our online tool to compare your options now.
Related content: Best Homeowners Insurance in South Dakota
Get Ready for Take Off
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