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7 Best Mortgage Lenders
By Joan Pabón MONEY RESEARCH COLLECTIVE
Offers more flexible fixed-term mortgages (8 - 29 years)
Purchase, Jumbo, Refinance, Fixed, Adjustable, FHA, VA
3%
Large network of lenders and easy online comparison process
Purchase, Jumbo, Refinance, Fixed, Adjustable, FHA, VA, USDA (specifics vary by lender)
Vary by lender
Ideal for active service members with no time to attend a physical branch
Purchase, Jumbo, Refinance, Fixed, Adjustable, FHA, VA, USDA
0%
Buying a home is a major milestone, and one you’ll likely need to finance with the help of a mortgage. Considering the most popular mortgage term in the U.S. is 30 years, deciding on a lender may be one of the most far-reaching decisions you’ll make in the homebuying process — second to choosing a house.
When shopping for a home loan, you may be tempted to go with the lender offering you the lowest mortgage rate. But while that should be a top priority, there are several other factors you’ll want to consider, including fees, loan options and the lender’s reputation for customer service.
To help you in your search, we vetted some of the best mortgage lenders in the industry based on the above vetting criteria. Want to find the best lender for your needs? Read on.
Our Top Picks for the Best Mortgage Lenders
- Best for Customer Satisfaction: Rocket Mortgage
- Best Online Lender: Better Mortgage
- Best for Military Servicemembers: Veterans United
- Best Marketplace: LendingTree
- Best for First-time Buyers: Guild Mortgage
- Best for Self-Employed Applicants: Caliber Home Loans
- Best Brick-and-Mortar Lender: Bank of America
Best Mortgage Lender Reviews
Best for Customer Satisfaction: Rocket Mortgage
Why we chose it: Rocket Mortgage — formerly Quicken Loans — takes the lead in customer satisfaction thanks to its fully-online mortgage origination process and in-house loan servicing. In fact, Rocket has received some of the highest possible customer service ratings in J.D. Power’s survey of mortgage originators and its survey of mortgage servicers.
- Has the highest customer satisfaction ratings in the industry
- Originates and services loans
- Has a fully online loan process
- Loan advisors and chat support are available all week
- Doesn't offer USDA loans, HELOCs or HELOANs
- Doesn't have physical branches
- Online application not available to self-employed borrowers
Unlike most lenders, Rocket Mortgage services the vast majority of the loans it originates (except jumbo loans). This approach to customer service — coupled with a fully online mortgage process — has garnered Rocket a solid reputation for customer satisfaction. Moreover, prospective borrowers can reach the company any day of the week (and as late as midnight for those who reach out over chat) for expert advice on loan options.
Besides its high customer service ratings — which are no small feat for the largest originator in the country — Rocket Mortgage also has a decent variety of loan types from which to choose, from refinancing loans to Jumbo, VA and FHA loans. Rocket also offers custom loan terms ranging from 8 to 29 years, providing a degree of flexibility that few other lenders offer.
Best Online Lender: Better Mortgage
Why we chose it: Better Mortgage is yet another lender offering a 100% online loan application and origination. The company claims it can help you close on a loan in just 32 days — shorter than the industry average — and, thanks to its focus on automation, it charges absolutely no lender fees.
- 100% online mortgage process
- Offers pre-approval in just a few minutes
- Doesn't charge an origination fee
- Doesn't offer VA, USDA or home equity loans
- Doesn't have physical locations
- Not available in HI, NH or NV
Better Mortgage is a relative newcomer to the online lending industry that seeks to streamline the mortgage process and make it more transparent for borrowers. It claims to provide rate quotes in seconds and pre-approval in just three minutes and help borrowers close on their loans in as little as 32 days. Its approach to lending also allows the company to do away with application, origination, processing and underwriting fees.
Another factor that distinguishes Better from some other lenders is that loan officers don’t earn commission on loans they originate, so there’s no incentive for them to match you with a loan you can’t afford. Better also has a good selection of purchase and refinance loans, including conventional, FHA and jumbo mortgages, as well as a price guarantee that will credit you 100% if it can’t match a competitor’s offer.
Best for Military Servicemembers: Veterans United
Why we chose it: Veterans United is a dedicated VA loan lender that consistently boasts some of the highest customer satisfaction ratings in the primary mortgage market, according to J.D. Power. It also provides a completely online mortgage process and has excellent online reviews from previous customers.
- Has good customer service reviews online
- Gets consistently high customer satisfaction ratings
- Mortgage process is completely online
- Solely offers VA loans; no other types available
- Has few brick-and-mortar locations
Veterans United serves only veterans, active service members and military families, which has helped the lender develop considerable expertise in loans backed by the U.S. Department of Veterans Affairs. While this type of mortgage requires more paperwork than conventional home loans, Veterans United seeks to make the process as streamlined as possible by providing a fully online mortgage experience and ample resources for first-time VA homebuyers.
Note, however, that while it has a strong online presence, Veterans United doesn’t have physical branches in every state and limits its services to VA purchase and refinance loans. And while it’s not officially included in J.D. Power’s ranking of primary mortgage originators, Veterans United has consistently received high customer satisfaction scores (higher even than the latest survey’s top lender) as well as positive customer reviews on sites like the Better Business Bureau and Trustpilot.
Best Marketplace: LendingTree
Why we chose it: LendingTree is a leading loan marketplace that matches borrowers with lenders from its considerable list of partners. The site’s quote comparison tool is easy to use and lets you get offers from multiple companies by completing a single online application.
- Offers quotes from hundreds of lenders through one application
- Matches you with the best mortgage lenders for your credit score
- You could be contacted by a slew of lenders via phone and email
LendingTree is a loan marketplace that matches qualifying borrowers with over 1,500 lenders. As such, it offers a convenient solution to borrowers who can’t or don’t want to go through the time-consuming task of filling out multiple loan application forms and comparing rate quotes manually. Additionally, LendingTree also offers guides and articles that may be useful for first-time borrowers.
To get quotes through LendingTree, you need only provide details regarding their credit, finances and the property you’re looking to buy. After that, you may view and compare offers from several lenders and receive additional quotes via email. While this could result in considerable savings — studies have shown that getting at least five quotes can save borrowers thousands of dollars on their mortgage — it may also lead to a rush of calls and emails from lenders eager to earn your business.
Best for First-Time Buyers: Guild Mortgage
Why we chose it: Guild Mortgage received the highest rating for customer satisfaction in J.D. Power’s latest U.S. Primary Mortgage Origination Satisfaction Study. Besides having a great reputation for customer service, Guild also caters to a broad range of borrowers through several different loan programs, including one for first-time homebuyers.
- Has one of the highest customer satisfaction ratings in the industry
- Partners with 500 down payment assistance programs across the country
- Loan options for low-income and low-credit-score borrowers
- Doesn't offer home equity loans or lines of credit
- Currently not available in New York
For many, two of the greatest obstacles to homeownership are a lack of sufficient funds for a down payment and a low credit score. Guild Mortgage is one of the few lenders we have researched that not only offers all types of government-backed loans, but also extends a zero-down program that combines an FHA loan — which requires a 3.5% down payment from qualifying borrowers and has a minimum credit score of 540 — with a down payment assistance program.
In fact, Guild Mortgage partners with over 500 down payment assistance programs across the country, several of which offer grants that don’t have to be repaid. Besides being among the top FHA loan lenders and having one of the best reputations among loan originators, Guild has also received high customer satisfaction ratings as a loan servicer. This, coupled with the lender’s broad availability across the country and its digital mortgage closing platform, make it an excellent option for first-time homebuyers.
Best for Self-Employed Applicants: Caliber Home Loans
Why we chose it: Caliber Home Loans is the only lender on this list currently offering a home loan program tailored to the needs of self-employed borrowers. The lender also offers a variety of mortgages, from government-backed loans to jumbo loans and even options for real estate investors.
- Self-employed borrowers may qualify for a mortgage of up to $3 million
- Offers government-backed, jumbo and investment property loans
- Some loan programs allow one late mortgage payment in 12 months
- Doesn't offer home equity loans
While qualifying for a mortgage as a self-employed borrower is not impossible, many lenders prioritize applicants with a steady income stream, as evidenced by consistent employment over the past two years. Caliber Home Loans gives those borrowers a fair chance at homeownership through its SmartSelf loan program, which calculates income by averaging deposits made to their bank account. Moreover, even self-employed individuals may qualify for loan amounts of up to $3 million.
Besides a dedicated loan for self-employed applicants, Caliber offers a wide variety of mortgage options, many of which have low credit score requirements. And even those who have limited funds for a down payment may qualify for different types of home loans, as Caliber accepts down payments of as little as 3% on conventional mortgages — depending on the loan amount. As a plus, Caliber also offers a fully online mortgage application, but borrowers may choose to apply over the phone or at a physical branch.
Best Brick-And-Mortar Lender: Bank of America
Why we chose it: With over four thousand locations across the nation and a wide variety of mortgage options, Bank of America is a great choice for borrowers wanting to complete the mortgage process with the in-person guidance of experienced loan officers.
- Over 4,300 branches across the U.S.
- Has closing costs and down payment assistance programs
- Offers most types of mortgages, even home equity lines of credit
- Existing customers may qualify for more competitive rates and lower fees
- Doesn't offer home equity, USDA or renovation loans
Bank of America has more branches across the nation than any other lender on this list. It also has more mortgage options than most lenders, including all types of government-backed loans, jumbo loans and specialized loan programs for first-time buyers — including two grants that can help them cover some of their down payment or closing costs.
Customers who already have a checking or savings account with Bank of America may qualify for lower rates and fees as well as other perks. For example, qualifying licensed and practicing medical professionals may find it easier to obtain a mortgage through BoA, as the lender will exclude their student loan debt from their total debt during the loan application process.
Best Mortgage Lenders FAQ
Which FICO® score do mortgage lenders use?
According to Experian, when you apply for a home loan, your lender will request all three of your credit reports from each of the credit bureaus, along with a FICO® score based on each report. Now, FICO® uses different scoring models for each bureau, so your credit score with TransUnion may differ from your score with Equifax and Experian.
Moreover, FICO® scores have been updated over the years. The most recent version is the FICO® Score 10, but not all lenders have adopted it. In fact, because of Fannie Mae and Freddie Mac lending guidelines, most lenders request older FICO® score versions.
Here are the FICO score versions most commonly used in the mortgage lending industry:
| Credit Bureau | FICO Score Versions Commonly Used |
| Experian | FICO® Score 2 |
| Equifax | FICO® Score 5 |
| TransUnion | FICO® Score 4 |
Your lender may base its decision to approve or deny your mortgage application on the middle of the three scores or, if you're applying with someone else, the lower middle score. If your credit scores are below what's required for the mortgage you're applying for, read our article on how to fix your credit.
What is a reverse mortgage loan?
A reverse mortgage is a type of loan available to borrowers 62 and older that lets them borrow from the equity in their home. Equity is the current market value of your home minus what you owe on it. If you've already paid off your mortgage, then your home equity is the same as your home's market value.
The portion of your home equity you're able to access through a reverse mortgage is tax-free and can be paid out in different ways: as a lump sum, line of credit or monthly installments. These types of loans aren't due until you die, sell the home or fail to pay your insurance premiums, property taxes or necessary home repairs. Moreover, you are not required to make payments on your loan in the interim.
Note, however, that if you were to die before paying off your reverse mortgage, your heirs would be held responsible for the loan.
How to choose a mortgage lender
When shopping for a lender, consider the following:
1. Preparation is key. Dispute any incorrect items in your credit reports and look to improve your credit score before applying for a mortgage. Having a good-to-excellent score will snag you a lower mortgage rate, which means you'll pay less overall for what you borrow. Also, gather all the required documentation to streamline the loan application process. You'll need your tax returns, proof of income and bank account statements, among others.
2. Not all lenders offer all loan types. If your credit needs improvement or you don't have enough saved up for the typical down payment on a conventional loan, a government-backed loan may be your best bet. If that's your case, look for lenders offering VA, USDA or FHA loans. Similarly, if you live in a high-cost area and the price of the home you want to purchase exceeds conventional loan limits, you'll need to find a lender that offers jumbo loans — and not all do. Research your loan options first and then narrow down on lenders offering what you need.
3. Shopping around can save you money. Get rate quotes from different lenders to determine which is offering you the best overall deal. According to Freddie Mac, borrowers can save an average of $1,435 on a $250,000 loan by getting one additional quote, and 80% of borrowers could save between $2,089 and $3,904 by getting at least five quotes.
Read our article on how to choose a mortgage lender for additional tips.
What is a mortgage loan originator?
A mortgage loan originator is a bank, broker or loan officer who works for the original lending institution and, along with loan processors and underwriters, helps issue mortgage loans. Mortgage originators guide homeowners through the different stages of a mortgage transaction, helping them choose a home loan and understand its terms.
What do mortgage lenders look for?
When you apply for a mortgage, your lenders will consider the following factors when determining your loan eligibility and mortgage rate:
- • Credit score – Your credit score is a measure of your creditworthiness or ability to repay what you borrow. The higher your credit score, the higher your chances of approval and of getting a low mortgage rate. This, in turn, will determine what you'll pay in interest over the life of your loan.
- • Payment history – If you have a history of missed payments, it won't be easy to get approved for a home loan. In fact, your credit history accounts for 35% of your credit score. With this in mind, research how to get incorrect negative items removed from your credit reportto improve your odds of approval.
- • Income and employment – Lenders favor borrowers who have a steady source of income and have been consistently employed for the past two years. If you have recent gaps in your employment history or are self-employed, other factors such as your down payment amount, credit score, debt-to-income (DTI) ratio or savings/assets may compensate for those detractive factors.
- • DTI ratio – Your debt-to-income ratio is the sum of your monthly debts divided by your gross monthly income (before income taxes and other deductions are taken out). This number helps lenders understand how much of your income can reasonably go to repaying your mortgage. The lower your DTI, the better your odds of approval. Generally, most lenders are looking for a DTI under 45%, but specific requirements vary by loan type.
- • Down payment – The type of mortgage you choose will determine the minimum amount you'll be required to put down on your home. In general, a larger down payment can get you a lower interest rate, help you avoid mortgage insurance and signal the lender that you're in a good financial position to repay your loan.
- • Other assets – Similarly, having other assets such as properties or investments held in non-retirement accounts can minimize risk for borrowers, as you'll have other potential sources of income to repay your loan.
How We Found the Best Mortgage Lenders
To narrow down our list of the best mortgage companies in the industry, we factored in the following:
- Variety of mortgage products – We selected lenders offering a variety of loan products to meet the needs of different borrowers, from low-down payment options to jumbo loans and mortgage refinance loans.
- Customer satisfaction ratings – As part of our methodology, we considered each company’s overall customer satisfaction index as reported on J.D. Power’s latest U.S. Primary Mortgage Origination Satisfaction Study.
- Industry Reputation – For this criterion, we looked at consumer complaints about the lender filed with the Consumer Financial Protection Bureau (CFPB) as well as regulatory actions taken against it based on data reported on the Nationwide Multistate Licensing System (NMLS).
Summary of the Best Mortgage Lenders
- Best for Customer Satisfaction: Rocket Mortgage
- Best Online Lender: Better Mortgage
- Best for Military Servicemembers: Veterans United
- Best Marketplace: LendingTree
- Best for First-time Buyers: Guild Mortgage
- Best for Self-Employed Applicants: Caliber Home Loans
- Best Brick-and-Mortar Lender: Bank of America
Joan is a professional translator, writer and editor with a special interest in personal finance and insurance topics. She has been a contributing author and independent researcher at ConsumersAdvocate.org since 2017 and an editor at Money since 2019. Her work has been featured in MSN Money and Apple News.