Known for its warm weather and scenic beauty, there are a lot of reasons to call Arizona home. Choosing the right lender can take time, but Benzinga’s here to help. Here are the best mortgage lenders in Arizona.
- 1. Best for Self Employed Professionals: Union Home Mortgage
- 2. Best Online Lender: Guaranteed Rate
- 3. Best for FHA Loans in Arizona: Rocket Mortgage®
- 4. Best for VA Loans: Veterans United
The 4 Best Mortgage Companies in Arizona
Lenders have areas of expertise. Here are Benzinga’s top picks for a variety of situations.
- 1% Down Payment
1. Best for Self Employed Professionals: Union Home Mortgage
Union Home Mortgage offers a mortgage specifically for self-employed professionals. Bank statement mortgages allow self-employed borrowers to qualify based on the income shown on their statements. This is often higher than the income on their tax returns, since tax returns include deductions for business expenses.
Union Home Mortgage will work with borrowers who have credit scores of 660 or higher. It also offers conventional, FHA, VA and USDA loans, so you can evaluate all your options.
- Personalized support
2. Best Online Lender: Guaranteed Rate
Guaranteed Rate offers a digital mortgage process. It uses technology to simplify and streamline what can sometimes be a tedious process. Its experts can help you along the way via phone or email.
Nearly all of its customers say they would use Guaranteed Rate again, which says a lot about its level of service. It also has an A+ rating from the Better Business Bureau. Guaranteed Rate offers conventional, FHA, jumbo and VA home loans.
- Online Service
3. Best for FHA Loans in Arizona: Rocket Mortgage®
FHA loans can be complicated. They have specific requirements and it’s best to work with a lender that knows how they work. Rocket Mortgage® is an experienced lender that knows the ins and outs of the FHA loan process.
It also makes the process simple. You can start the process online or by phone. The experts at Rocket Mortgage® will walk you through every step. You can check the status of your loan at any time using its website. If an FHA loan isn’t the best fit, Rocket Mortgage® also offers conventional, VA and jumbo loans.
- Current Service Members
4. Best for VA Loans: Veterans United
Service members and veterans deserve the best. Veterans United has thousands of reviews from its clients, who appreciate the expertise and friendliness of its loan experts.
Veterans United specializes in VA loans. To better serve its clients, it offers around-the-clock customer service. Its military advisors ensure that it provides top-notch service to veterans. It also educational information to help you better understand the VA loan process.
Mortgages Explained
The mortgage world has a language all its own. Here’s a guide to some of the terms you’ll come across in your mortgage search.
Mortgage Type
Your mortgage type refers to who sets the rules for your mortgage. Here are the most common types.
- Conventional mortgages aren't directly overseen by a government agency. Lenders have some leeway when it comes to how these mortgages are structured. You may need a higher credit score to qualify for a conventional mortgage, but that varies by lender.
- FHA loans have low credit score requirements. If you have a credit score of 580 or higher, you can make a down payment as low as 3.5%. If you have a credit score of 500-579, you can make a down payment of 10%.
- VA loans are backed by the Veterans Administration. Qualifying service members and veterans can get these loans, which typically have no down payment requirement. VA loans also have flexible credit requirements.
FHA and VA loans are offered through approved private lenders.
Mortgage Term
Your mortgage term refers to how your payments are structured. Here are a few options you’re likely to see.
- 30-year fixed mortgages spread your payments out over 30 years. This means that your payments are lower than they would be with a shorter mortgage term, but you’ll pay more in interest over the life of the loan. A fixed rate means that the interest rate never changes. This means that your required monthly payments stay the same too.
- 15-year fixed mortgages spread your payments over 15 years. You’ll have a higher monthly payment, but you’ll pay less in interest than with a mortgage with a longer term. You also have the same interest rate and the same monthly payment over the life of your mortgage.
- 5/1 ARMs work differently than fixed-rate mortgages. An ARM is an adjustable-rate mortgage. That means the lender can change your interest rate, and that also changes your monthly payment. Most ARMs start with a fixed-rate period. A 5/1 ARM has a fixed rate for the first 5 years. After that, the lender can change your rate annually. This means your payments could increase or decrease annually until the loan is paid off.
Which Mortgage Lender is Best for You?
How do you find the best mortgage lender? Here are a few qualities to look for.
- Responsiveness: Does the lender respond to your inquiries promptly? If a lender takes its time to get back to you about a loan estimate, it may not be the best choice. The lender should also respond to you in the way you prefer. If you like to work via email and the lender insists on calling you, it may not be a good fit.
- Low fees: Lenders charge fees for originating your mortgage. They may be called origination fees or underwriting fees. Compare the fees from each prospective lender, and keep these fees in mind as you decide which lender to choose.
- Customer-focused: Does the lender have your interests in mind? Does the lender ask questions to help you decide which home loan is best for you? Or does it feel like the lender is pushing you one way or another? A good lender will get to know you and your situation and help you choose a mortgage that’s a good fit.
Lender Credit Score Minimums in Arizona
Your credit score is a computer-generated number that gives lenders an idea of how you’ve handled credit in the past. Lenders use your credit score to decide on your interest rate. They also have minimum credit scores for all the borrowers they work with. If you don’t meet the minimum, you’ll need to take some time to improve your score before you can qualify for a mortgage. Here are the minimums for several Arizona lenders.
| Lender | Minimum Credit Score Required |
|---|---|
| Better.com | 620 |
| Guaranteed Rate | 620 |
| Rocket Mortgage® | 620 |
| Veterans United | 660 |
Current Mortgage Rates in Arizona
Lenders change interest rates frequently. Sometimes they change them daily or even multiple times per day. Lenders change interest rates in response to the economy and the housing market. At Benzinga, we update our rates frequently to reflect the most relevant information. Here are the current rates in Arizona.
| Loan Type | Rate | APR |
|---|---|---|
| 30-year fixed | 6.549% | 6.667% |
| 15-year fixed | 6.19% | 6.425% |
| 7/1 ARM (adjustable rate) | N/A | N/A |
| 5/1 ARM (adjustable rate) | 6.25% | 7.269% |
Average Days to Close on a Loan
The mortgage process takes time. After you complete your application and submit your financial documents, your lender will need to verify your information. You’ll also need to get your home appraised and inspected. Once your lender has the information it needs, it will let you know whether you’ve been approved. If you’re approved, you’ll work with your lender to set a time to sign your closing documents.
You’ll receive your loan documents a few days before your closing meeting. You should review your documents carefully and ask your lender about any changes. At the meeting, you’ll sign your documents and pay the balance of your down payment. Here are the average days to close for several Arizona lenders.
| Lender | Average Days to Close |
|---|---|
| Guaranteed Rate | 30 |
| Veterans United | 35 |
| Rocket Mortgage® | 30 |
| Wells Fargo | 90 |
Which Mortgage is Right for Me?
Choosing the right mortgage can be a challenge. There may be multiple mortgage options that work for you. Get quotes from multiple lenders and review each quote carefully. Choose a mortgage that offers a monthly payment that fits your budget, keeping in mind that owning a home comes with additional expenses. Consider whether you want the security of a rate that never changes or a lower rate now.
If you’re a first-time home buyer, you may also want to consider Arizona’s home buyer programs. These programs can often help with your down payment and make your mortgage more affordable.
