Best of
10 Best Online Mortgage Lenders of October 2020
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Online mortgage lenders offer convenience, automation and digital tools. Browse our picks for the best online lenders.
NOTE: Due to the coronavirus outbreak, obtaining a mortgage may be a bit of a challenge. Lenders are dealing with demand and staffing issues. If you can’t pay your current home loan, refer to our mortgage assistance resource. For the latest information on how to cope with financial stress during this emergency, see NerdWallet’s financial guide to COVID-19.
Going online to look for a mortgage or a refinance is routine these days. That's because companies — both new online mortgage lenders and traditional players — are doing more on the web.
The new online mortgage model offers convenience and automation. It can even save you money. And hey, if you want to see a friendly face before you close a deal, you can often do that, too.
Remember, you should still get preapproved before you house shop, get at least three quotes before you choose a mortgage and evaluate how much home you can afford before you take the plunge.
» MORE: Monitor your credit score
To help you choose an online mortgage lender, NerdWallet has 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.
NOTE: Due to the coronavirus outbreak, obtaining a mortgage may be a bit of a challenge. Lenders are dealing with demand and staffing issues. If you can’t pay your current home loan, refer to our mortgage assistance resource. For the latest information on how to cope with financial stress during this emergency, see NerdWallet’s financial guide to COVID-19.
Going online to look for a mortgage or a refinance is routine these days. That's because companies — both new online mortgage lenders and traditional players — are doing more on the web.
The new online mortgage model offers convenience and automation. It can even save you money. And hey, if you want to see a friendly face before you close a deal, you can often do that, too.
Remember, you should still get preapproved before you house shop, get at least three quotes before you choose a mortgage and evaluate how much home you can afford before you take the plunge.
» MORE: Monitor your credit score
To help you choose an online mortgage lender, NerdWallet has 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.
Summary of Best Online Mortgage Lenders of October 2020
| Lender | NerdWallet Rating | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
 Better.com: NMLS#330511 at Better.com | Best for customer service | 620 | 3% | at Better.com |
 Rocket Mortgage by Quicken Loans: NMLS#3030 at Rocket Mortgage | Best for mobile experience | 620 | 3% | at Rocket Mortgage |
 Quicken Loans: NMLS#3030 at Quicken Loans | Best for first-time home buyers | 620 | 3% | at Quicken Loans |
 Fairway Independent Mortgage: NMLS#2289 at Fairway | Best for government loans | 620 | 3% | at Fairway |
.png) Reali Loans: NMLS#991397 at Reali Loans | Best for refinance | 620 | 5% | at Reali Loans |
 Guaranteed Rate: NMLS#2611 at Guaranteed Rate | Best for customer service | 620 | 3% | at Guaranteed Rate |
 NBKC: NMLS#409631 at NBKC Bank | Best for online lending overall | 620 | 3% | at NBKC Bank |
 SoFi: NMLS#1484615 | Best for refinance | 660 | 10% | Read review |
 SunTrust: NMLS#2915 | Best for first-time home buyers | 620 | 3% | Read review |
 Bank of America: NMLS#399802 | Best for online lending overall | 620 | 3% | Read review |
at Better.com
Min. Credit Score
Min. Down Payment
at Better.com
at Rocket Mortgage
Rocket Mortgage by Quicken Loans: NMLS#3030
Min. Credit Score
Min. Down Payment
at Rocket Mortgage
at Quicken Loans
Quicken Loans: NMLS#3030
Min. Credit Score
Min. Down Payment
at Quicken Loans
at Fairway
Fairway Independent Mortgage: NMLS#2289
Min. Credit Score
Min. Down Payment
at Fairway
at Reali Loans
Reali Loans: NMLS#991397
Min. Credit Score
Min. Down Payment
at Reali Loans
at Guaranteed Rate
Guaranteed Rate: NMLS#2611
Min. Credit Score
Min. Down Payment
at Guaranteed Rate
at NBKC Bank
NBKC: NMLS#409631
Great for first-time home buyers | digital convenience | customer service
Min. Credit Score
Min. Down Payment
at NBKC Bank
SoFi: NMLS#1484615
Min. Credit Score
Min. Down Payment
SunTrust: NMLS#2915
Min. Credit Score
Min. Down Payment
Bank of America: NMLS#399802
Min. Credit Score
Min. Down Payment
Online mortgage FAQ
What is an online mortgage?
The term "online mortgage" is used to refer to a mortgage from a lender that has no physical presence, like Quicken Loans. That definition has broadened, as even banks with brick-and-mortar branches all across the country — like Bank of America — offer robust online mortgage capabilities.
When NerdWallet gathers the top online mortgage lenders, we look for lenders that let borrowers apply, upload necessary documents and track the entire loan process via an app or a mobile-friendly website. But you'll find plenty of lenders who offer even more online conveniences, like online preapproval, custom rate quotes or the ability to live chat with an actual person.
How does an online mortgage work?
The exact process varies depending on the lender. But in general, an online mortgage should allow you to accomplish key tasks like getting rate quotes, filling out an application and providing documents without having to sit down with a loan officer. In some cases, you may not even need to dig up all of the documents yourself.
Rocket Mortgage, for example, will electronically access necessary information from government agencies, financial institutions and employers (with your permission, of course). It claims finding all your information online can take days off the closing process.
Though with some online mortgage lenders you'll still close the loan in person, "eClosings" are becoming more common. For example, Fairway Independent Mortgage lets some borrowers opt for a digital closing — once you've reviewed all the necessary documents, the actual closing can take as little as 15 minutes.
How do I find online mortgage lenders?
Scroll up! We've already suggested 10 terrific options. But if you're trying to figure out the best online mortgage lender for you, you may want to look for a lender that suits your specific situation. For example, NKBC Bank earns high marks both for online experience and as a top lender for first-time home buyers.
Even if you're looking for online convenience, location matters. Some top online mortgage lenders, including Reali and Better.com, aren't available to borrowers in every state.
What types of online mortgages can I get?
Offerings vary by lender, but with a bit of searching, you can find an online mortgage lender for virtually any type of home loan. For example, in addition to conventional loans, SunTrust online mortgage options include jumbo loans, VA loans, FHA loans and USDA loans, plus refinancing and home equity lines of credit. SoFi offers jumbo loans with down payments as low as 10% for qualified borrowers and doesn't require mortgage insurance for these super-sized loans even with a down payment that's under 20%.
How do I choose an online lender?
When you're evaluating online lenders, consider your goals. In addition to being sure that they offer the kind of mortgage you need, think about what's important to you outside the application and approval process — after all, this could be a long-term relationship. Check out customer service options. Guaranteed Rate, for example, earns high marks for customer satisfaction.
Can I get an online mortgage loan with bad credit?
It's possible to get an online mortgage with bad credit, but you'll want to do some homework before submitting any applications. Look at lenders' minimum credit scores and pay attention to whether those minimums are for a conventional or FHA loan. Mortgages backed by the Federal Housing Administration often have lower minimum credit score requirements.
The beauty of filling out an online application for pre-approval is that it's fast, but the downside is that you can't explain your financial background or credit history to a computer. If you've got a credit score that needs improvement or limited credit history, you may want to look for online mortgage lenders willing to consider nontraditional credit data.
More from NerdWallet
Last updated on January 22, 2020
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 five key areas we evaluated include the variety of loan types and products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee 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 Online Mortgage Lenders of October 2020
- Better.com: Best for customer service
- Rocket Mortgage by Quicken Loans: Best for mobile experience
- Quicken Loans: Best for first-time home buyers
- Fairway Independent Mortgage: Best for government loans
- Reali Loans: Best for refinance
- Guaranteed Rate: Best for customer service
- NBKC: Best for online lending overall
- SoFi: Best for refinance
- SunTrust: Best for first-time home buyers
- Bank of America: Best for online lending overall
