Since buying a house can be expensive, people often apply for a home loan or mortgage. Many lenders in the country provide this service to help individuals fulfill their dream of home ownership. But to be eligible for such schemes, one must meet certain eligibility criteria, such as a good credit score and a positive DTI ratio. That said, certain lenders have lenient terms that make it easy to get approved for a home loan.
Ally
This is a popular financial institution that offers quick and easy approval for home loans. Their One Day Mortgage program lets eligible borrowers get a commitment letter within 24 hours. But that’s not the only reason to choose Ally. The lender also does not charge underwriting commissions, origination fees, processing fees, or application costs. Many other top banks charge these fees, making the loan more expensive. Further, Ally offers adjustable and fixed-rate mortgages and has an option of jumbo loans.
First-time homebuyers who work with Ally can apply for Fannie Mae’s HomeReady and Freddie Mac’s HomeOne Mortgage programs. These programs let customers get approved by paying only a 3 percent down payment. Even Ally’s jumbo loan is attractive, requiring only 10 percent down. That said, the interest rate is above the national average, and the debt-to-income ratio (DTI) ratio is 50 percent.
Bank of America
Those who want to work with a traditional bank can opt for Bank of America. It has high customer satisfaction ratings, which can be attributed to its competitive interest rates and a streamlined loan process that makes approval easy. The bank also has a closing cost assistance program and a down payment assistance program that helps customers save on the loan.
Bank of America’s proprietary Affordable Loan Solution mortgage is especially beneficial for first-time homebuyers and modest-income buyers as it requires a 3 percent down payment. The bank does not offer USDA loans or specify its minimum credit score requirements, so it is difficult for borrowers to assess beforehand whether they will qualify. Still, it is a good option for those who wish to work with a national lender.
Rocket Mortgage
This is another popular lender that offers quick approval for home mortgage loans. Its Prequalified Approval scheme helps people apply online without providing any documents. The company ranks high in customer experience and is an excellent alternative for first-time homebuyers. It offers various mortgage options, such as jumbo loans, conventional loans, FHA loans, and VA mortgages.
To qualify for conventional loans with Rocket Mortgage, customers must have a credit score of 620 or higher. Borrowers with a low credit score can take out their FHA loan (provided they make a high down payment). The company usually closes its mortgages in 30 to 45 days. While some applications may take longer, the lender assists customers throughout the process.
Chase
The largest bank in the country, Chase has high customer ratings and many easy home loan approval options. Those choosing this bank can avail of jumbo mortgages, conventional loans, and even government-backed loans. Low-income borrowers can also opt for Case’s proprietary DreaMaker loan program. The bank’s Homebuyer Grant is also an option, offering up to $7,500 to eligible homebuyers.
Chase offers many advantages, such as faster closing times and competitive interest rates. It also provides many loan rate discounts for existing customers. That said, some may experience challenges with Chase, as it allows only a part of its application to be done online. So, customers must work with a Chase Home Lending Advisor in person at the branch.
Rate
Founded over two decades ago, Rate was formerly called the Guaranteed Rate. The lender has a bundle of home loan options, including non-QM loans, government-backed loans, and conventional loans. Applying for and getting approved for Rate loans is relatively easy, thanks to an online process. Its interest rates usually match the other lenders in the market. That said, it levies a small lender fee and does not offer USDA loans.
PNC
This bank stands out as a suitable mortgage lender for several reasons, including its online application process, easy availability of mortgage programs, and handy mortgage calculator. PNC has 170 years of experience in traditional banking, which is one of the main reasons customers trust it. Customers can easily monitor their mortgage status and the application online. With their Home Insight Planner, PNC lets customers shop for homes within their budget. One can also reach the PNC consultants via phone all seven days of the week.
Those looking for easy-approval home loans must compare different lenders’ rates, terms, fees, customer service, and closing times. Doing so can help them make an informed decision.