Making your home in Montana can be incredible, particularly if the Rocky Mountains or Glacier National Park are in your backyard.
The state is home to just over 1 million people. Ready for wide-open spaces and low property taxes? It’s time to search for the right mortgage lender!
Read on for Benzinga’s top mortgage lenders in Montana.
Best Mortgage Companies in Montana:
- Best for First Time Home Buyers: Keller Mortgage
- Best for Self-Employed Professionals: Better.com
- Best Online Lender: Quicken Loans®
- Best for VA Loans: Veterans United
The 5 Best Mortgage Companies in Montana
Here are some of the best Montana mortgage lenders for every situation you can imagine.
- Mortgage Information
1. Best for First Time Home Buyers: Keller Mortgage
You’ll want to find a mortgage lender that can help you throughout the process if you’re a first-time home buyer. Keller Mortgage is a great option for first-timers, especially if you haven’t had a lot of time to build up your credit score. Unlike most lenders, Keller Mortgage has a minimum credit score requirement of 600 for its conventional mortgage products.
As a first-time buyer, you’ll probably be looking for ways to minimize your costs. If you work with a Keller Mortgage agent, you’ll have access to Keller Mortgage’s ZeroPlus program. The program offers low mortgage rates, no origination or lender fees and $1,000 to help cover your closing costs.
- The Online Experience
2. Best for Self-Employed Professionals: Better.com
Better.com is committed to removing the hurdles to homeownership for self-employed professionals. It offers a 100% digital application and full transparency in its pricing and process.
You’ll find that your mortgage application with Better.com is customized to your situation, which means you’ll only be asked questions relevant to your unique circumstances.
For self-employed applicants, Better.com requests 2 years of business tax returns to show your income history. Better.com's website is full of useful information to help self-employed applicants understand the mortgage process. Its website can also walk you through useful tips for a self-employed mortgage applicant.
- Online Service
3. Best Online Lender: Quicken Loans®
Online mortgage lenders have become popular in recent years for good reason. Working with an online lender like Quicken Loans® can give you quick and easy access to a mortgage application. Instead of waiting for an appointment with someone in person, you can use the tools on the Quicken Loans website to get you started.
The website offers an interactive way to find the right mortgage type, based on your basic information and home type. You’ll also be able to benefit from online tools such as a monthly mortgage payment calculator. If you do need help, Quicken Loans offers access to its customer service team both online and by phone.
- Current Service Members
4. Best for VA Loans: Veterans United
Veterans United offers a number of resources for borrowers who qualify for a VA loan. Not sure whether you qualify? The Veterans United website can help you review the requirements to see if you do.
It also offers resources such as an affordability calculator and a monthly payment calculator to help you determine which homes fit in your budget. You can use the Veterans United website to get prequalified for your loan, which allows you to actively begin searching for your home as quickly as possible.
If you ever need assistance, Veterans United offers 24/7 customer service support.
Mortgages Explained
Mortgages aren’t a one-size-fits-all solution. In fact, there are several mortgage options for you to choose from! First, you’ll need to select a mortgage type. Mortgage types range from conventional loans to specific home buyer programs. You’ll also choose a mortgage term, which is the amount of time you’ll be paying back your mortgage.
Mortgage Type
Here are some of the common mortgage types that you’ll probably come across.
- Conventional: Conventional loan types are a common option for many home buyers. You’ll need to meet certain qualifications, including minimum income and credit score requirements.
Your lender will set these requirements, so it’s important to check with each lender to see if you’ll qualify for its loan product. You can select from a variety of mortgage terms for your conventional loan.
- FHA: FHA loans are managed by the Federal Housing Administration and offered through FHA-approved lenders. This popular mortgage option offers lower minimum credit score requirements than conventional loans. It also offers low rates and lower minimum down payment requirements.
To qualify for an FHA loan, you’ll have to meet the requirements that are set by both your FHA-approved lender and the Federal Housing Administration.
- VA: VA loans are backed by the U.S. Department of Veterans Affairs. To qualify, you must meet the VA’s service requirements. If you qualify, you’ll be able to use a VA loan to finance 100% of your home purchase. You’ll also benefit from low interest rates on your VA loan.
Mortgage Term
Once you’ve selected your mortgage type, you’ll have a few different mortgage terms you can choose from. Here are a few of the options.
- 30-year fixed: Fixed-rate mortgages mean that your interest rate will not change throughout the lifetime of your loan. The mortgage rate you are offered when you lock in your loan is the amount of interest you will pay each month.
If you select a 30-year fixed-rate mortgage, this means you will pay the same mortgage payment with interest each month for 30 years. At that point, your mortgage will be paid off.
- 15-year fixed: You’ll find that 15-year fixed-rate mortgages are similar to 30-year fixed-rate mortgages. You will have the same interest rate for the entire 15 years you repay your loan with a 15-year fixed-rate mortgage.
Choosing a 15-year mortgage term means that you can expect higher monthly mortgage payments since you’ll pay off your mortgage in a shorter amount of time. A 15-year fixed-rate mortgage means you’ll pay less interest over the lifetime of your loan because you’ll be making fewer mortgage payments.
- 5/1 ARM: A 5/1 adjustable-rate mortgage (ARM) means that your interest rate will change during the lifetime of your loan. A 5/1 ARM means you’ll have a fixed interest rate for the first 5 years and your interest rate will change once per year after that.
Which Mortgage Lender is Best for You?
Finding the best mortgage starts with choosing the right mortgage lender. Each mortgage lender has its own unique benefits and product offerings. Here are a few things you might want to consider when you choose your lender.
- Customer service: When you run into a problem, you want a customer service department you can rely on, right? You can search for reviews of the lender you’re interested in to see what people have to say about its customer service.
Better yet, you can contact the lender’s customer service team to see for yourself. Don’t be afraid to reach out to a lender’s customer service team to ask questions about its products, even if you’re not a customer yet.
- Mortgage programs: One of the other major considerations when you choose a lender is which mortgages it offers. Even if you’re looking for a conventional mortgage, a lender may offer specific programs that you could benefit from.
Whether you’re a first-time home buyer or have another unique situation, you never know when a lender might have something that could help you save money.
Lender Credit Score Minimums in Montana
Your lender will take a look at your credit score when you apply for a mortgage. Your credit score will tell a lender important factors such as whether you make payments on time, how much debt you owe and more.
Lenders require a minimum credit score to approve you for a mortgage. Lenders will also use your credit score to determine your interest rate.
| Lender | Minimum Credit Score Required |
|---|---|
| Keller Mortgage | 600 |
| Better.com | 620 |
| Quicken Loans® | 620 |
| Veterans United | 620 |
Current Mortgage Rates in Montana
Mortgage rates fluctuate just like stocks on the stock market. You can keep an eye on mortgage rate trends to help you decide when you should take out a mortgage.
Benzinga monitors mortgage rate fluctuations and updates current mortgage rate charts to reflect the most recent data.
| Loan Type | Rate | APR |
|---|---|---|
| 30-year fixed | 7.185% | 7.299% |
| 15-year fixed | 6.933% | 7.275% |
| 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
When you buy your home, there’s still a waiting period before you can move in. This is called the closing process.
During this period, you’ll finalize your negotiations and terms of the sale with the seller of your home. You’ll also have a home inspection and appraisal performed on your home. Your lender will work on finalizing your mortgage during the closing process.
When you sign the closing documentation and make all of the necessary payments, you’ll be able to finish the closing process and move into your new home.
| Lender | Average Days to Close |
|---|---|
| Keller Mortgage | 30 |
| Better.com | 21 |
| Quicken Loans® | 30 |
| Veterans United | 40 to 50 |
What’s Next?
When you’re ready to buy in Big Sky Country, the best thing to do is to get a mortgage rate quote. Once you know what a lender can offer you, you can move forward and determine your budget for buying your home.
Related content: BEST MONTANA HOMEOWNERS INSURANCE