Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jul 29, 2021

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Summary

  • Direct mortgage loans are loans that come from the lender
  • You can secure a loan with a low interest rate if you have a good credit score
  • The average mortgage interest rate changes rapidly

Were you looking for direct mortgage loans? Finding direct mortgage loans is challenging, but locating direct lender mortgage loans is much easier. A direct mortgage loan company can provide you with several types of loans.

So how do you buy direct mortgage loans?

Read through this guide to learn more about direct mortgage loans, direct mortgage loan interest rates, and where you can find the top direct mortgage lenders in the United States.

When you finish reading about direct mortgage loans, enter your ZIP code in the free online quote tool to compare multiple lenders near you.

Why should I get a direct mortgage loan?

Getting a direct mortgage loan means you don’t have to go through other agencies or mortgage brokers to get a mortgage loan.

This means any direct mortgage lending you receive comes from the lender of your choice.

If you prefer not to deal with mortgage brokers, try getting a mortgage loan yourself. Before you do, you should learn more about the bells and whistles of mortgage loans.

Apply for a Loan

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Why should I go to a direct mortgage lender?

A lot of factors determine whether affordable direct mortgage loans are available to you. Some middlemen and women tack on fees or interest rates when you get a mortgage loan.

Direct lenders may have an application fee, but you’ve done the leg work of finding a lender. Therefore, you won’t have to pay an extra fee for shopping around.

How do I apply for direct mortgage loans?

You can apply for a direct mortgage loan like any other loan. You need a few things during the application process, including:

  • A credit report
  • A signed copy of a purchase and sales agreement
  • Banks statements from the last two months
  • Copy of year-to-date profits if you’re self-employed
  • Driver’s license
  • Pay stubs from the last 30 days
  • Permanent address
  • Personal and business tax returns
  • Social Security number
  • W-2s from the last two years

The direct mortgage lender reviews all of your documents before underwriting a mortgage loan. It takes up to two weeks for lenders to process your information.

It’s important to note that mortgage loans don’t typically pay for down payments on a home. You’ll need a personal loan if you need help with a down payment.

Where can I find the top direct mortgage lenders?

You can find direct mortgage lenders from anywhere in the United States. But if you’re not sure where to start, try comparing the top direct mortgage lenders. Check out this list to see which lenders are the best in 2021.

The Best Mortgage Lenders in 2021
Mortgage CompaniesBest QualityMinimum Credit Score Requirement
AlterraBest of FHA LoansN/A
BetterBest for Financing620
ChaseBest for First-Time Home Buyer and Buyers Who Need Jumbo Loans620
ConnexusBest for Home Equity Lines of CreditN/A
FlagstarBest for Jumbo LoansN/A
Guaranteed RateBest for Online Experience and Refinancing620
Navy FederalBest for VA LoansN/A
New American FundingBest for Nontraditional Credit Histories620
North American Savings BankBest for Overall Mortgage Experience for First-Time Home Buyers and Veterans620
PrimeLendingBest of FHA Loans580
Quicken LoansBest for Customer Satisfaction620
Wells FargoBest for Overall Online Experience620
Compare RatesStart Now →

Some companies didn’t report the minimum credit score requirement, but it won’t hurt to dig a little deeper to see what they provide.

If your mortgage loan was denied at the bank, try getting a mortgage loan through a credit union.

Credit unions focus more on customers than profits, so you might have a better chance of getting approved.

Apply for a Loan

Enter your ZIP code below to view lenders with cheap loan rates.

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What’s the average direct mortgage loan interest rate?

Mortgage rates change every day. That’s because they’re connected to bond prices. As bond prices increase, mortgage rates decrease.

As of July 2021, the average mortgage rate dropped to 2.82%. By the time you read this article, the average mortgage loan interest rate will have changed again.

Can my credit score affect my direct mortgage loan interest rates?

The short answer is yes. Although mortgage loans change rapidly, you can secure a low mortgage interest rate if you have good credit.

According to the Federal Trade Commission (FTC), insurance companies, lenders, and other creditors will check your credit score to see if you’re a good risk.

Lenders drop your mortgage interest rates when you have an exceptional or good credit score. Take advantage of low interest rate opportunities. You could save thousands if you get a decent mortgage interest rate.

Direct Mortgage Loans: What’s the bottom line?

We searched all over the internet for direct mortgage loans, but we didn’t see it as a loan type. While most mortgage lenders identify what a direct mortgage lender is, they don’t define direct mortgage loans.

Now that you know more about direct mortgage loans and lenders, use our free comparison tool below to compare multiple lenders in your area and secure low mortgage interest rates today.