Best Mortgage Lenders of August 2022
Before buying a home or refinancing a mortgage, shop around to find some of the best mortgage lenders for your circumstances.
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When you buy a home or refinance your mortgage, it's a big financial decision, so it makes sense to find the best mortgage lender you can. To do that, shop for offers from at least three lenders.
Compare mortgage rates and other loan elements such as fees, terms, time to close, the availability of online application and loan tracking, and customer service offerings. Taking the time to make an informed decision can save you thousands of dollars over the life of your loan.
To help you choose a mortgage lender, NerdWallet’s business and editorial teams have picked some of the best out there in a variety of categories to help you get the home loan with the best mortgage rate, term and fees.
When you buy a home or refinance your mortgage, it's a big financial decision, so it makes sense to find the best mortgage lender you can. To do that, shop for offers from at least three lenders.
Compare mortgage rates and other loan elements such as fees, terms, time to close, the availability of online application and loan tracking, and customer service offerings. Taking the time to make an informed decision can save you thousands of dollars over the life of your loan.
To help you choose a mortgage lender, NerdWallet’s business and editorial teams have picked some of the best out there in a variety of categories to help you get the home loan with the best mortgage rate, term and fees.
Best Mortgage Lenders From Our Partners
| Lender | NerdWallet rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
 New American Funding: NMLS#6606 Learn more at New American Funding | Best for overall mortgage experience | 620 | 3% | Learn more at New American Funding |
 Veterans United: NMLS#1907 Learn more at Veterans United | Best for VA loans | 620 | 0% | Learn more at Veterans United |
 Ally Bank: NMLS#181005 Learn more at Ally Bank | Best for jumbo loans | N/A | 10% | Learn more at Ally Bank |
 BNC National Bank: NMLS#418467 Learn more at BNC National Bank | Best for FHA loans | 580 | 3.5% | Learn more at BNC National Bank |
 NBKC: NMLS#409631 Learn more at NBKC | Best for refinancing | 620 | 3% | Learn more at NBKC |
 Rocket Mortgage, LLC: NMLS#3030 Learn more at Rocket Mortgage, LLC | Best for refinancing | 620 | N/A | Learn more at Rocket Mortgage, LLC |
 SoFi: NMLS#1484615 Learn more at SoFi | Best for refinancing | 620 | 3% | Learn more at SoFi |
 Guaranteed Rate: NMLS#2611 Learn more at Guaranteed Rate | Best for first-time home buyers | 620 | 3% | Learn more at Guaranteed Rate |
 Watermark Home Loans: NMLS#1838 Learn more at Watermark Home Loans | Best for borrowers with weaker credit | 620 | 3% | Learn more at Watermark Home Loans |
 NASB: NMLS#400039 Learn more at NASB | Best for overall mortgage experience | 620 | 3% | Learn more at NASB |
 Pennymac: NMLS#35953 Learn more at Pennymac | Best for FHA loans | 580 | 3.5% | Learn more at Pennymac |
 Bethpage Federal Credit Union: NMLS#449104 Learn more at Bethpage Federal Credit Union | Best for credit union lending | 620 | 3% | Learn more at Bethpage Federal Credit Union |
 PNC: NMLS#446303 Learn more at PNC | Best for FHA loans | 620 | 3.5% | Learn more at PNC |
at New American Funding
New American Funding: NMLS#6606
Min. credit score
620Min. down payment
3%at New American Funding
at Veterans United
Veterans United: NMLS#1907
Min. credit score
620Min. down payment
0%at Veterans United
at Ally Bank
Ally Bank: NMLS#181005
National / regional
NationalMin. down payment
10%at Ally Bank
at BNC National Bank
BNC National Bank: NMLS#418467
Min. credit score
580Min. down payment
3.5%at BNC National Bank
at Rocket Mortgage, LLC
Rocket Mortgage, LLC: NMLS#3030
Min. credit score
620National / regional
Nationalat Rocket Mortgage, LLC
at Guaranteed Rate
Guaranteed Rate: NMLS#2611
Min. credit score
620Min. down payment
3%at Guaranteed Rate
at Watermark Home Loans
Watermark Home Loans: NMLS#1838
Min. credit score
620Min. down payment
3%at Watermark Home Loans
at Pennymac
Pennymac: NMLS#35953
Min. credit score
580Min. down payment
3.5%at Pennymac
at Bethpage Federal Credit Union
Bethpage Federal Credit Union: NMLS#449104
Min. credit score
620Min. down payment
3%at Bethpage Federal Credit Union
NerdWallet's editorial picks for the best mortgage lenders
Best for nontraditional credit histories | |
Best for refinancing | |
Best for first-time home buyers and VA loans | |
Best for digital convenience | |
Best for digital convenience | |
Best for overall mortgage experience | |
Best for first-time home buyers and jumbo loans | |
Best for refinancing | |
Best for rate transparency | |
Best for rate transparency | |
Best for jumbo loans | |
Best for variety of loan types |
Explore our lender roundups
How does a mortgage work?
A mortgage is a loan to purchase a home. The loan is repaid with interest in monthly payments over a certain number of years, such as 15, 20 or 30. If the mortgage isn't repaid, the borrower may lose the home in a multistage process known as foreclosure.
Banks, credit unions and other lenders offer mortgages. To apply, fill out an application and provide documentation about your finances. Lenders consider your income, debts and credit score to decide whether you qualify and the terms to offer.
» MORE: What is a mortgage?
Types of mortgages
There are a variety of mortgages and home loan programs. Here are some of your choices.
Fixed vs. adjustable rates
There are fixed-rate and adjustable-rate mortgages. The interest rate stays the same for the entire loan term of a fixed-rate mortgage. With an adjustable-rate mortgage, or ARM, the interest rate stays the same for a certain period, up to 10 years, and then adjusts at a specified interval, usually every six months.
15-, 20- and 30-year mortgages
The most popular mortgage term is 30 years, but 15- and 20-year mortgages are also available. Mortgage payments are spread out monthly through the term. At the end, the loan is paid off and the borrower owns the property free and clear.
Government-backed mortgages
These loans are backed by the federal government:
FHA mortgages are backed by the Federal Housing Administration. They allow down payments as low as 3.5% and have more lenient credit score requirements than other loan programs. Borrowers must pay for mortgage insurance.
USDA mortgages, backed by the U.S. Department of Agriculture and meant for rural home buyers, do not require a down payment, but borrowers must pay an upfront and annual guarantee fee, similar to mortgage insurance for FHA loans.
VA loans, backed by the U.S. Department of Veterans Affairs, are for veterans and active military members. VA mortgages require no down payment, but borrowers pay a one-time VA funding fee, which can be rolled into the loan.
Conventional loans
Conventional loans are mortgages that are not backed by the federal government. Some conventional loans have down payment requirements as low as 3% — but typically, borrowers must pay for private mortgage insurance if they put down less than 20%.
Conventional mortgages can be conforming or nonconforming. Conforming conventional mortgages fall within certain dollar amount limitations set every year by the Federal Housing Finance Agency. They also meet underwriting guidelines set by Fannie Mae and Freddie Mac, the government-sponsored entities that buy conforming loans.
Nonconforming loans don’t abide by those limits and guidelines. For example, jumbo loans are conventional mortgages that exceed the conforming loan limits. They also typically have stricter criteria for approval than other mortgages.
What’s the credit score needed for a home loan?
The credit score needed to buy a home depends on the type of loan and the lender. Most borrowers have scores in the high 600s to 700s. FHA loans generally have the most lenient credit score requirements.
How to compare mortgage rates
You can check current mortgage rates to see the average of what lenders are offering. Then get initial quotes online from some lenders based on your location, loan term, purchase price, down payment amount and other factors.
To get a firm quote, you'll need to apply for preapproval. During the preapproval process, the lender will check your credit and verify your financial information, such as income, assets and debts.
How to shop for a mortgage lender
The time to shop for a mortgage lender is before you start house hunting. Getting preapproved for a mortgage will show real estate agents and sellers that you're a serious buyer. It's smart to get preapproved and then get Loan Estimates from more than one lender. The Loan Estimate provides details about the loan terms, monthly payment and estimated closing costs. With those pieces of information, you can compare offers and choose the best deal.
More from NerdWallet:
Last updated on August 1, 2022
Methodology
The partner lenders featured at the top of this page were selected by NerdWallet's business team from our lists of Best Conventional Mortgage Lenders, Best Mortgage Lenders for First-Time Home Buyers, Best Mortgage Refinance Lenders, Best Lenders for FHA Loans, Best VA Mortgage Lenders, Best Mortgage Lenders for Low or Bad Credit Score Borrowers, Best Mortgage Lenders for Jumbo Loans, Best Credit Union Mortgage Lenders and Best Online Mortgage Lenders.
NerdWallet's content team selected its list of lenders based on the following methodology:
NerdWallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services each lender offers to consumers who are actively shopping for the best mortgage. The four key areas we evaluated include the variety of loan types offered, ease of application, mortgage rate transparency, and our analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
To recap our selections...
NerdWallet's Best Mortgage Lenders of August 2022
- New American Funding: Best for overall mortgage experience
- Veterans United: Best for VA loans
- Ally Bank: Best for jumbo loans
- BNC National Bank: Best for FHA loans
- NBKC: Best for refinancing
- Rocket Mortgage, LLC: Best for refinancing
- SoFi: Best for refinancing
- Guaranteed Rate: Best for first-time home buyers
- Watermark Home Loans: Best for borrowers with weaker credit
- NASB: Best for overall mortgage experience
- Pennymac: Best for FHA loans
- Bethpage Federal Credit Union: Best for credit union lending
- PNC: Best for FHA loans
Frequently asked questions
The answer depends on your needs. Lenders vary by the types of loans and services they offer as well as their credit score minimums and other requirements for borrowers. The best mortgage lender is the one that offers the products you need, has requirements you can meet and charges the lowest mortgage rates and fees.
Some lenders post mortgage rates on their websites and include tools to see how much your rate might be. But those are just estimates. You'll need to get preapproved for a mortgage to get a rate offer based on your credit score and other financial information.
Closing costs are the various fees and expenses you pay to finalize the mortgage. Closing costs typically run between about 2% and 5% of the loan amount. That means on a $300,000 home loan, you could pay $6,000 to $15,000 in closing costs.
Most state housing finance agencies offer first-time home buyer programs, which can include closing cost and down payment assistance. The assistance can come in the form of a grant, a forgivable loan or a deferred-payment loan. To qualify, you need to work with a lender approved by the state agency.
You should shop for a lender first and get preapproved for a mortgage before shopping for a house. A mortgage preapproval shows sellers and their real estate agents that you're a serious buyer. It also indicates how much you can borrow, which will help you determine how much home you can afford.
