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Choosing the right mortgage lender is important for a lot of reasons. Saving money is a big part of that, but getting the type of loan your looking for and having a smooth experience are important, too.
We’ve chosen lenders that offer a variety of mortgage types and offer worthwhile extra features, such as down payment assistance. Many of our top picks also thrive in customer satisfaction and accept alternative forms of credit if you don’t have a credit score, making it easier to qualify.
Rocket Mortgage
Navy Federal Credit Union
Veterans United
Fairway Independent Mortgage Corporation
Guild Mortgage
New American Funding
NBKC Bank
Bank of America
PNC Bank
Carrington Mortgage Services
Chase
US Bank
Comparing the best mortgage lenders
Rocket Mortgage (jump to Rocket Mortgage details»)
The bottom line: Rocket Mortgage is a great option if you’re comfortable applying online and have a good credit score.
Rocket Mortgage ranked as the top lender for customer satisfaction from J.D. Power for 11 consecutive years, and ranked No. 2 in 2021. It offers a quick, easy online experience and has mortgages with terms as short as eight years.
Rocket Mortgage has an A+ rating from the BBB. This lender doesn’t have any physical branch locations, so you’ll complete your application process completely remotely.
Navy Federal Credit Union (jump to Navy Federal Credit Union details»)
The bottom line: Navy Federal is a good option for people affiliated with the military overall, but especially if you’re searching for a lender that’s friendly to people who aren’t in the best financial situation — namely, people with low credit scores and little money for a down payment.
Navy Federal is a solid choice for military-affiliated homebuyers, whether they’re looking for a VA loan or another type of mortgage. Its Homebuyers Choice mortgage, for example, is a conventional mortgage with no down payment required and no mortgage insurance.
Navy Federal received a high score in customer service from J.D. Power, but didn’t rank in the annual study because it doesn’t meet certain criteria.
The BBB gives Navy Federal an NR (No Rating). You can only become a member of Navy Federal Credit Union if you or your family is affiliated with the military, you are a Department of Defense civilian personnel or contractor, or you live with a Navy Federal member.
Veterans United (jump to Veterans United details»)
The bottom line: Veterans United is a good option for several types of mortgages, but VA loans are its strongest products. It could also be a good fit if you have a poor or no credit score.
Veterans United earned a very high score in customer service on J.D. Power’s 2021 Primary Mortgage Origination Satisfaction Study, though it doesn’t qualify to rank because it doesn’t meet certain criteria.
This lender has an A+ rating from the BBB.
Fairway Independent Mortgage Corporation (jump to Fairway Independent Mortgage Corporation details»)
The bottom line: Fairway Independent Mortgage is a good lender for people who want to explore their options. It provides many types of home loans and has several term lengths to choose from.
Fairway Independent offers a digital closing option, giving borrowers the ability to have a quick, remote closing experience. You can also use alternative forms of credit to apply with this lender.
Fairway Independent has an A+ rating from the BBB and ranked above average in J.D. Power’s annual study.
Guild Mortgage (jump to Guild Mortgage details»)
The bottom line: Guild Mortgage is a good option for many types of people, because it has multiple home loans for borrowers in different situations.
Guild Mortgage is an affordable lender thanks to its down payment assistance programs and willingness to accept alternative forms of credit data. It also offers a digital closing option.
Guild currently has an A- rating from the BBB. In 2021, it earned the No. 1 spot in J.D. Power’s annual customer satisfaction study.
New American Funding (jump to New American Funding details»)
The bottom line: New American Funding is a strong mortgage lender overall, and its buydown loan and I CAN loan make it easy to customize a mortgage to your specific needs.
New American Funding offers a couple of unique mortgage options, including its I CAN mortgage. The I CAN mortgage lets you choose any mortgage term length from eight to 30 years. This level of customization means you can choose a term that’s long enough that your monthly payments remain affordable, but short enough that you save money on interest.
New American Funding currently has an A+ rating from the BBB.
NBKC Bank (jump to NBKC Bank details»)
The bottom line: NBKC Bank is a worthwhile option if you have a good credit score and value online convenience.
NBKC Bank has a live online chat feature that lets you talk to an expert and get your questions answered in just minutes. Membership members may also be able to get a discount on their interest rates and fees.
NBKC currently has an A+ rating from the BBB
Bank of America (jump to Bank of America details»)
The bottom line: Bank of America is a good mortgage lender overall, but you’ll need a decent credit score to qualify for a mortgage.
Bank of America offers borrowers up to $7,500 in closing cost assistance and up to $10,000 in down payment assistance. If you already have an account with Bank of America, you may be able to get a discount on your origination fee.
Bank of America has an A+ rating from the BBB. It ranked above average in J.D. Power’s 2021 Primary Mortgage Origination Satisfaction Study.
PNC Bank (jump to PNC Bank details»)
The bottom line: PNC Bank is a good lender if you have a strong credit score, especially if you want to get a mortgage with a company you could use for a HELOC or home equity loan later.
With PNC Bank, you could get a grant up to $5,000 if you meet income limits. It also offers a PNC Community Loan, which is a mortgage that allows down payments as low as 3% with no private mortgage insurance.
PNC Bank has an A+ rating from the BBB. In 2021, it ranked at the industry average in customer satisfaction, according to J.D. Power.
Carrington Mortgage Services (jump to Carrington Mortgage Services details»)
The bottom line: Carrington is a worthwhile option, particularly if you have a low or no credit score and need to apply with alternative data.
Carrington offers a Carrington Flexible Advantage mortgage, which allows borrowers with credit scores as low as 550 to get a mortgage. If you have a low score or credit events such as bankruptcy on your credit report, you may still be able to get a mortgage with this lender. Carrington also accepts alternative forms of credit on some of its mortgages.
Carrington has an A+ rating from the BBB.
Chase (jump to Chase details»)
The bottom line: Chase is a strong mortgage lender overall, but you’ll need a decent credit score to qualify.
Chase’s DreaMaker mortgage is an affordable option for lower-income borrowers, with a minimum down payment requirement of just 3% and flexible credit guidelines. Its Homebuyer Grant program also gives out up to $2,500, or $5,000 to borrowers in low-income or majority-Black areas.
Chase has a A- rating from the BBB. It ranks below average on J.D. Power’s Primary Mortgage Origination Satisfaction Study.
US Bank (jump to US Bank details»)
The bottom line: US Bank is a good lender if you want to explore your options, because it has a wide range of loan types.
Current US Bank customers can get up to $1,000 off their closing costs if they get their mortgage through this lender. If you’re looking for a VA mortgage, US Bank lends these to borrowers with credit scores as low as 600, which is lower than what many other VA lenders requires.
This lender has an A+ rating from the BBB. It ranks below average on J.D. Power’s customer satisfaction study.
Other mortgage lenders that didn’t make the cut and why
We examined over two dozen mortgage lenders. Here are the ones we didn’t choose as our favorites:
USAA: This is a good option for VA loans, but it doesn’t offer other types of mortgages.Regions: You might like using Regions, but the bank only has branches in certain parts of the US.Citibank: This bank received good customer satisfaction ratings from J.D. Power, but an F from the BBB.Better.com Mortgage: A good option if you want a conventional loan from an easy-to-use online lender, but Better.com doesn’t offer FHA, USDA, or VA loans.SoFi: SoFi is another worthwhile choice for conventional mortgages, but you can’t get an FHA, USDA, or VA loan.Paramount Bank: You might like Paramount as an online lender, but it doesn’t offer as many mortgage types as our top picks.Pennymac: Pennymac offers a variety of mortgage types, but it ranks low on J.D. Power’s customer satisfaction survey.Flagstar Bank: This bank has received an A+ from the BBB, but J.D. Power ranks it pretty low on customer satisfaction.Mr. Cooper: This lender offers several types of loans, but J.D. Power ranks it low for customer satisfaction.Alliant Credit Union: This is a good online lender with conventional mortgages and HELOCs, but it doesn’t have FHA, USDA, or VA mortgages.Caliber Home Loans: You can find lenders with better customer satisfaction ratings from J.D. Power.Loan Depot: Loan Depot isn’t accredited by the BBB, and it doesn’t offer USDA loans.Guaranteed Rate: You might like Guaranteed Rate, but it only has an A- from the BBB.Freedom Mortgage: This lender has a variety of mortgage types, but J.D. Power ranks it low for customer satisfaction.Wells Fargo: Due to some recent scandals, Wells Fargo has received an F in trustworthiness from the BBB.Truist: You might enjoy working with SunTrust, but it scored below average on J.D. Power’s annual survey.
Methodology: How we chose the best mortgage lenders for 2022
To choose the top mortgage lenders of August 2022, we looked at four main factors:
Loan types. Did a lender offer several types of loans to suit customers’ needs, such as conventional loans, government-backed loans, and home equity loans?Customer satisfaction. If the lender appeared in the J.D. Power 2021 Primary Mortgage Origination Satisfaction Survey, we looked at its ranking. If it wasn’t in the survey, then we read online customer reviews.Affordability. We looked at lenders’ minimum credit scores and down payment amounts. We also checked whether they offer government-backed loans, which can be more affordable for borrowers with less-than-perfect financial profiles. Finally, we looked at whether it considers alternative forms of credit, like utility bills and rent payments, for you to qualify.Ethics. Almost all of our top picks received an A+ from the Better Business Bureau, which measures companies’ trustworthiness. We also researched and considered any scandals in the past three years.
Are these mortgage lenders trustworthy?
The Better Business Bureau grades companies based on responses to customer complaints, honesty in advertising, and transparency about business practices. Here are the BBB grades for our top mortgage lenders:
LenderBBB gradeRocket MortgageA+Navy Federal Credit UnionNRVeterans UnitedA+Fairway Independent Mortgage Co.A+Guild MortgageA-New American FundingA+NBKC BankA+Bank of AmericaA+PNC BankA+Carrington Mortgage ServicesA+ChaseA-US BankA+
Most of our top picks have an A+ from the BBB. The exceptions are Guild Mortgage, Chase, and Navy Federal. Guild Mortgage and Chase have an A- rating from the BBB due to government actions taken against the businesses. Navy Federal has an NR (“No Rating”) because it is responding to customer complaints that had previously closed.
Several of these lenders do have recent public controversies, though, even the ones with great BBB grades.
In 2019, the US Justice Department required Rocket Mortgage’s parent company Quicken Loans to pay $32.5 million for alleged mortgage fraud. The Justice Department claimed Quicken Loans approved mortgage applications it shouldn’t have. Although Quicken Loans paid the settlement, the company never admitted to mortgage fraud.
A Navy Federal employee has claimed the lender pressured mortgage underwriters to approve loans even if they didn’t have sufficient reason to believe applicants could repay the loans. Then she filed a lawsuit and said Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.
In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn’t qualify, resulting in loan defaults.
In 2020, the Department of Justice charged Bank of America for unfairly denying home loans to adults with disabilities, even though they qualified for loans. Bank of America paid around $300,000 total to people who were refused loans. In 2019, the Department of Labor required Bank of America to pay $4.2 million to people who claimed the bank discriminated against women, Black, and Hispanic applicants in the hiring process.
PNC Bank was accused in 2019 of aiding a man in carrying out a fake debt relief project, which cost customers a total of $85 million. In 2014, PNC had suspected the man of running a scheme and closed his bank accounts. But nine months later, the bank let him open more accounts.
The Department of Justice required JPMorgan & Chase to pay $920 million for wrongful trading in 2020. The company paid the Securities and Exchange Commission $135 million in 2018 for mishandling American Depositary Receipts, certificates that let Americans invest in foreign stocks.
If any of these scandals worry you, you may decide to go with one of the other lenders on our list.
What questions should I ask myself?
Before you get a mortgage, you need to make sure you’re financially prepared. These are some things you should be thinking about.
How much mortgage can I afford?
Knowing how much mortgage you can afford isn’t just about how much you think a lender will approve you for – you also need to make sure you feel comfortable with your monthly payments and that your budget doesn’t feel too stretched.
Just because a lender will approve you for a $300,000 mortgage doesn’t mean you should borrow that full amount. Borrowing too much could mean not having any wiggle room in your budget or having to forgo spending money on things you enjoy just to make sure your mortgage is paid.
Is my credit ready?
Most lenders will require you to have a decent credit score and reasonable debt-to-income (DTI) ratio before they’ll consider you for a mortgage. For conforming mortgages, this typically means having a credit score of 620 and a DTI below 50%. You’ll also need a down payment of at least 3%, though you may be required to have more.
However, if there’s room for you to improve your credit situation, you may want to do that before applying for a mortgage, even if you meet your lender’s minimum requirements. Taking the time to raise your credit score, lower your DTI, or save for a larger down payment can help you snag a lower rate and save money on interest each month.
What are current mortgage rates?
Knowing how mortgage rates are currently trending will help give you an idea of whether the rates you’re being offered by lenders are competitive. It can also help you determine how much house you can afford, since your rate will impact how much you pay each month.
What questions should I ask my lender?
As you shop around for a lender, don’t be afraid to ask a lot of questions to make sure they’re the right fit for you.
What types of mortgages do you offer?
Most lenders don’t offer every type of mortgage that’s out there. If you’re looking to get a government-backed mortgage like an FHA mortgage, make sure your lender offers them.
What type of mortgage is best for me?
If you aren’t sure which type of mortgage is best for you, have your lender walk you through the details of each option available to you. Find out how much each option would cost, both on a monthly basis and overall.
Do you charge any fees?
Mortgage lenders typically charge some sort of fee for using their services, such as an origination fee or application fee. These lender fees will be included in your closing costs, so it’s important to understand how much you’ll be paying.
Will you sell my loan?
Most lenders sell their mortgages after closing to maintain liquidity and allow them to continue lending mortgages. This process typically doesn’t impact you as the borrower.
However, lenders sometimes also sell their loans’ servicing rights. The servicer is the entity you make your monthly payments to, so if your lender sells the servicing rights to your loan, you’ll send your payments to your new servicer, not the lender you originally got the mortgage from.
Frequently asked questions
What makes a mortgage lender good?
A mortgage lender should offer the kind of mortgage that best suits your needs. For example, if you’re in the military, then you could benefit from a VA loan; if you’re buying in a rural area, then a USDA loan could be the best fit.
A lender should be relatively affordable. You shouldn’t need a super high credit score or down payment to get a loan. It should also offer good rates and charge reasonable fees.
You want a lender that’s known for high customer satisfaction, and one that’s trustworthy. That’s why we’ve looked at ratings from J.D. Power and the Better Business Bureau for each lender on our list.
What banks offer the best mortgage rates?
The answer could change by the day. Take a look at Insider’s daily mortgage rate updates to see the average mortgage rates for various term lengths. If you have a good financial profile but a lender is charging you a higher rate than today’s national average, you may want to look elsewhere.
But a low interest rate isn’t the only expense that matters. Ask lenders for an itemized list of fees. Comparing fees among lenders is another way to see which is offering the best financial deal.
How can I get a good mortgage rate?
To secure a low rate, focus on three factors: credit score, debt-to-income ratio, and down payment.
Your score should be at least 620 to get a conventional loan with most lenders, although some require higher. But the higher your score, the better rate you should get. To improve your credit score, focus on making payments on time, paying down debts, and letting your credit age if you aren’t in a rush to buy.
Your debt-to-income ratio is the amount you pay toward debts each month, divided by your gross monthly income. Lenders typically want to see a debt-to-income ratio of 36% or less. To get a lower ratio, you either need to pay down debts or earn more.
You don’t necessarily need a 20% down payment to get a good rate, but the more you save, the better your rate will likely be. If you don’t have much for a down payment right now, it could be worth saving for a few more months.
Is it better to get a mortgage from a bank or a lender?
Mortgage lenders specialize in lending. Banks focus on several areas, including personal banking, lending, and investments. There isn’t a clear better choice — your decision will come down to a few factors.
Some banks offer discounts on closing costs if you’re already a customer. In this case, you may prefer to go with the bank you already use.
Mortgage lenders often have more flexibility, though. Banks are held to stricter lending standards by the federal government, so lenders may be willing to customize your loan to fit your needs.
Ultimately, your choice could come down to which company offers the best rate, lowest fees, and best customer service.
Which should I do first, choose a lender or shop for homes?
It’s better to look at mortgage lenders before houses. Once you choose a lender, you can apply for preapproval and get an official preapproval letter that states how much the lender intends to lend to you and locks in your interest rate.
When you choose a home to buy, show your preapproval letter to the seller to show you’re a serious candidate in good financial standing. Getting a preapproval letter can give you a leg up on the competition.
You aren’t married to a lender once you get a preapproval letter, though. You can apply for preapproval with multiple lenders to compare each company and make an informed decision. You’ll only need to show one to a seller, though.
Experts’ advice on choosing the best mortgage lender
Insider
To help you learn more about homebuying, mortgages, and lenders, four experts weighed in:
Anthony Park, author of “How to Buy Your Perfect First Home”Lauryn Williams, certified financial planner, founder of Worth Winning Financial PlanningJulie Aragon, mortgage broker, founder of Aragon Lending TeamLaura Grace Tarpley, certified educator in personal finance, editor of banking and mortgage at Personal Finance Insider
Our experts have also provided advice about how to know whether you’re ready to get a mortgage, and how to decide which type of mortgage is best for you.
Here’s what they had to say about mortgages. (Some text may be lightly edited for clarity.)
What factors should someone take into consideration when choosing a mortgage lender?
Anthony Park, author:
“The canned answer is to just go with the lowest rate. However, you also want to take into account who’s going to serve your loan best. Are repayments going to be easy for you? Who is most likely to be able to help you if you need to take out a HELOC or refinance later, versus somebody who’s more of a one-off type?
“They may have the lowest rates to get you involved, but they might have very, very little hand holding after the fact. I wouldn’t recommend paying an exorbitant amount more for potential services in the future, but just don’t always necessarily go with the rock-bottom lowest rate. There’s sometimes a cost with that.”
Laura Grace Tarpley, Personal Finance Insider:
“Apply for preapproval with multiple lenders. Each lender’s preapproval letter states how much it would lend to you, and it locks in your interest rate. It’s an effective way to compare lenders and see which will give you the best deal.
“But try to apply with all the lenders within a month or so. When you apply for preapproval, a lender does a hard credit inquiry. A bunch of hard inquiries on your report can hurt your credit score, unless it’s for the sake of shopping for the best rate. If you limit your rate shopping to a month or so, credit bureaus will understand that you’re looking for a home and shouldn’t hold each individual inquiry against you.”
How can someone decide between a conventional mortgage vs. a government-backed mortgage?
Anthony Park, author:
‘It really depends on if you qualify. If you do qualify for FHA or VA mortgages, those are no-brainers. just because the terms are so favorable. If you don’t qualify, you fall back by default onto conventional mortgages.”
Julie Aragon, Aragon Lending Team:
“The most common government loan that’s widely available to almost everyone is the FHA loan. There’s a couple of reasons why somebody would go with FHA instead of conventional one. Their credit is a little on the crummy side, let’s say below 700. You can get conventional with down to a 620 score, but the mortgage insurance gets really expensive. FHA doesn’t discriminate — no matter how perfect or crappy your credit is, the mortgage insurance is the same.”
How can someone know whether they’re financially ready to buy a home?
Lauryn Williams, CFP:
“You should have funds left over after everything is said and done as it pertains to purchasing the home. So if you don’t have an emergency fund plus a down payment, you’re probably not ready to purchase a home. Another thing I think about is credit card debt. While you can be approved for a mortgage with credit card debt and student loans and very little cash on hand, you put yourself in a very risky situation.”
Laura Grace Tarpley, Personal Finance Insider:
“You should be able to afford the extra costs that come with owning a home, like home repairs or lawn care. You didn’t have to budget for those things when you rented, because the landlord was responsible for maintenance.”
Mortgage and refinance rates by state
Check the latest rates in your state at the links below.
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