Find the Best Mortgage Lenders in Billings, MT

Different types of home loans in Billings

Because lenders set their own terms and rates, it’s important to compare your options with multiple lenders before committing to one in order to find the right loan. This is especially important because lenders might offer different types of mortgages, which can make a big difference in your total cost over the course of the loan term.

Here are some of the most popular mortgage types:

• Conventional mortgages: A conventional home loan is a type of mortgage offered by a private lender that is not backed by a government entity. Because of this, conventional loans often come with a bit more flexibility in offerings and terms, but they are more difficult to get than government loans.
• VA loans: A VA mortgage is backed by the Department of Veterans Affairs so that military members, veterans and their families can have access to better loans. VA loans come with no down payment requirement and fair rates. With a few military bases near Billings, including the Malmstrom Air Force Base, there are many families nearby that could make good use of this type of loan.
• FHA loans: The Federal Housing Administration designed these loans for low- to moderate-income families and first-time homebuyers. FHA loans come with lower rates and down payment requirements.
• USDA loans: The U.S. Department of Agriculture designed USDA home loans to encourage people to move to rural areas by offering good loan terms for homes in qualifying rural areas. That means there are many opportunities for Montana residents to take advantage of this loan, especially near Billings.
• Jumbo loans: A jumbo mortgage is necessary to buy homes over a certain price. For example, the jumbo loan minimum is $510,400 in Yellowstone County at the time of publishing, according to the Federal Housing Finance Agency. That means any home sale over this price in Yellowstone County requires a jumbo mortgage.
• Fixed-rate mortgages: A fixed-rate home loan is a type of loan that maintains the same interest rate throughout the loan terms. When rates are low, these are a good option because you can get consistently affordable payments over the course of your mortgage.
• Adjustable-rate mortgages: An adjustable-rate home loan offers a low introductory interest rate that eventually begins to adjust with market conditions. For example, a 5/1 ARM offers a fixed interest rate for the first five years, with changing rates after that. While rates can move in either direction, going up is more common. These are a good option for people who want low rates now but are willing to pay more when they are more financially stable, like young families or new professionals.

Not all of these types are mutually exclusive. That means you could have a jumbo loan with a fixed or adjustable rate, for example.

House prices in Billings

The median home price in Billings is $261,173 at the time of publishing, according to Zillow. However, property costs in Billings can range from $69,000 in the West End to several million in Lockwood. Median home values in various Billings neighborhoods include:

• Laurel: $259,100
• North Park: $162,160
• Highlands: $238,877
• North Elevation: $253,606
• Lockwood: $256,276

Homes on the west side of Billings are usually more expensive, given their frequently larger lots and expansive views.

Billings home loan FAQ

How long does it take to get approved for a mortgage in Billings?

On average, it takes 30 to 60 days to get approved for a mortgage, but it can take longer or shorter depending on your situation. For example, if you have a complicated financial history and are struggling to get good rates, it may take longer to receive approval. If you have all your paperwork and files in order at the beginning of the process, it can take less than 30 days, though.

Will shopping for a mortgage hurt my credit?

Not significantly. Credit reporting bureaus understand that you’re probably only going to buy one home, so they allow you to get rates from multiple companies within 45 days and only count them as one pull on your credit.

What is the average mortgage rate in Billings?

According to S&P Global, mortgage rates in Montana at the time of publishing fall between 3.05% and 3.48%, making them fairly competitive compared to other states. Your interest rate depends on:

• Your credit score
• Your financial history
• Your down payment

Shopping around is a great way to find a low interest rate on a mortgage. However, you can also put more money down or shorten your loan to avoid paying too much interest.

What is a mortgage lender?

A mortgage lender is a financial institution that offers and underwrites home loans. That means these organizations give you money to buy a home in exchange for repayment plus fees and interest.