Local banks
Hills Bank & Trust Company
MidWestOne Bank
F&M Bank
Credit unions
GreenState Credit Union
University of Iowa Community Credit Union (UICCU)
Veridian Credit Union
National banks
U.S. Bank
Wells Fargo
Bank of America
Mortgage brokers
Mortgage brokers don't lend their own money — they shop wholesale rates across multiple lenders and find a fit for your situation. Useful for:
- Self-employed borrowers with unusual income documentation
- Recent credit issues that don't fit standard underwriting
- Specialty loan products (non-QM, bank statement loans, foreign national, etc.)
- One-stop comparison across many lenders
The corridor has several independent mortgage brokers. Verify each is licensed through the NMLS (Nationwide Mortgage Licensing System; nmlsconsumeraccess.org). Ask which lenders they shop and how their compensation is structured (lender-paid vs borrower-paid).
How to actually rate-shop
- Pick at least 3 lenders. One local bank, one credit union, one broker or national lender. More is better.
- Apply within 14 days. Credit inquiries for mortgage loans within a 14-day window count as a single hard pull for FICO scoring. Don't drag the process out over months.
- Provide identical info to each lender. Same loan amount, same property type, same down payment, same product type. Otherwise you're not comparing apples to apples.
- Request a Loan Estimate (LE). Federally standardized form. Compare lenders on:
- Interest rate
- APR (includes lender fees)
- Origination charges and discount points
- Third-party fees (appraisal, title, recording)
- Prepaid items and escrow setup
- Total cash to close
- Compare LEs side by side. The lowest advertised rate isn't always cheapest after fees and points.
- Lock the rate once you have an accepted offer. Lock periods are typically 30, 45, or 60 days.
Pre-approval vs pre-qualification
| Pre-qualification | Pre-approval |
|---|---|
| Based on borrower-stated info | Verified through documentation |
| Soft credit pull or none | Hard credit pull |
| 10-minute online process | 1–2 day basic; 1–2 week fully underwritten |
| Limited weight with sellers | Strong weight with sellers |
| Free, easy | Documentation-intensive |
In competitive corridor situations, a fully underwritten pre-approval (lender has reviewed credit, income, and assets and confirmed all underwriting conditions short of property appraisal) makes your offer materially more competitive than a basic pre-approval. Ask your lender for the highest level they offer.
Documents to have ready
- Last 2 years of W-2s
- Last 2 years of federal tax returns (all schedules)
- 30 days of recent pay stubs
- 2 months of bank and brokerage statements (all pages)
- Photo ID
- If self-employed: profit-and-loss, business tax returns, 1099s
- If using gift funds: gift letter from donor, donor's bank statement showing source
- If you have rental property: lease agreements, mortgage statements
- If divorced: divorce decree, support order
- If recent job change: offer letter, first paystub
FAQ
Does it hurt my credit to apply to multiple lenders?
Not within the 14-day rate-shopping window for mortgage inquiries — FICO models treat them as a single hard pull. After 14 days, additional inquiries start counting separately. Concentrate your shopping in a tight window.
What's the difference between APR and interest rate?
Interest rate is what you pay on the principal. APR includes the interest rate plus most lender-paid fees expressed as an annualized rate, designed to make apples-to-apples lender comparison easier. Compare APR alongside rate.
Should I pay points to lower my rate?
Discount points let you pay upfront to lower your rate. Whether it makes sense depends on how long you'll stay in the home and your alternative use of that cash. Break-even is usually 4–7 years. If you might refinance or sell before then, points usually aren't worth it.
Do credit unions really offer better rates?
Often, yes. Credit unions are member-owned and not-for-profit; their rate structures are generally less aggressive on margin. In the corridor, GreenState in particular shows up frequently as the lowest-rate quote in side-by-side LE comparisons. Always verify with your own quote.
What if I'm self-employed?
You'll need 2 years of business and personal tax returns, a year-to-date P&L, and possibly more depending on income consistency. Some lenders specialize in self-employed underwriting. A mortgage broker can be especially useful here.