A guide to mortgage lenders in Phoenix, AZ
If you’re not paying cash for your Phoenix, AZ home purchase, you’ll need to work with a reputable mortgage company. Look for a lender that provides not only great deals, but also outstanding customer service.
Tips for choosing the right mortgage lender
There are hundreds of mortgage companies serving buyers in Phoenix. Expertise.com lists the top 20 out of 399 local lending agencies evaluated here, but you can certainly choose a lender based on your own standards, too. Use these three tips to guide your vetting process:
- Apply for mortgage pre-approval with multiple lenders
Getting a mortgage pre-approval is an essential step early on in the home buying process. Pre-approval is based on a lender’s review of your financial records, including your most recent W-2 forms, pay stubs, and tax returns, as well as statements declaring all bank and investment assets that you own.
Aside from a minimal fee, getting pre-approved does not require you to commit to any actual loans. Instead, it allows you to:
- Determine that your credit score makes you eligible to apply for a mortgage
- Get an accurate assessment of the amount you are eligible to borrow
- Find out the list of conditions that you need to meet to get full approval for aloan
- Assess each lender’s customer service approach
- Obtain actual data that you can compare – mortgage amounts offered, interest rates, and other conditions that apply to your loan
- Look for client testimonials and reviews
Keep high-quality customer service on top of your list of essential requirements from a lender. Search for feedback from previous clients and look for both service highlights and red flags.
- Consult your agent
Use your agent’s in-depth local knowledge and professional network to your advantage. Work with them closely to find the best match with your primary home buying requirements, preferences, and concerns. Your agent will also help you go through the fine print on any information and documents you get from your initial inquiries so that you can get up to speed on the ins and outs of the home financing process.
Jumbo mortgages for Phoenix, AZ luxury home buyers
If you’d rather spend your cash on other investment opportunities, financing a home purchase through a jumbo mortgage is the way to go.
Jumbo loans apply to properties priced above an area’s conforming loan limit. For home purchases in Arizona in 2019, the loan limit is $484,350.
Lender options for first-time home buyers
If you are a first-time home buyer with a long-term plan to buy a luxury property in the future, choose affordable Phoenix, Arizona real estate first. For this strategy, government-insured loans from the Federal Housing Administration (FHA), Department of Agriculture (USDA), or Department of Veteran Affairs (VA) are useful financing instruments.
The Arizona Housing Department also offers the Home Plus mortgage program, which provides assistance for down payment and closing cost needs. Borrowers can also take advantage of lower mortgage insurance premiums.