5 Tips for Finding the Best Mortgage Lender
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When you buy a home, you’re in it for the long haul. You’ll have a mortgage payment for 15, 20 or 30 years, so it’s smart to shop around to find the best mortgage lenders out there. NerdWallet has researched some of the best mortgage lenders to help narrow your choices.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
5 Tips for Finding the Best Mortgage Lender
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
620 | 3% | |||
620 | 3% | |||
620 | 3% | Top 3 most visited 🏆 Learn more at Guaranteed Rate | ||
 Flagstar: NMLS#417490 LEARN MORE on NerdWallet | N/A | 5% | LEARN MORE on NerdWallet | |
 PNC: NMLS#446303 LEARN MORE on NerdWallet | 620 | 3% | LEARN MORE on NerdWallet |
- Offers a one-day mortgage that lets eligible borrowers apply, lock in a rate and get a loan commitment within 24 hours.
- Average interest rates are on the low end compared to other lenders, according to the latest federal data.
- Offers a HELOC that can be used for a primary, second or investment home.
- Doesn't offer harder-to-find loans, such as construction loans, renovation loans, or USDA mortgages.
- Finding descriptions of all of the loan offerings on the website requires some digging, and the lender does not have a mobile app.
- Average lender fees are on the high end compared with other lenders, according to the latest federal data.
- Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots.
- Offers low rates and fees compared with other lenders, according to the latest federal data.
- Displays customized rates, with fee estimates, without requiring contact information.
- HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.
Guaranteed Rate: NMLS#2611
620
3%
- Offers a one-day mortgage approval process.
- Offers a generous selection of loans, including government-backed, interest-only, ITIN, jumbo and renovation loans.
- Advertises a HELOC that can be funded in as few as five business days.
- Origination fees are higher than average, according to the latest federal data.
- HELOC has a relatively short draw period, which may not provide flexibility for someone who wants the option of accessing home equity over a longer period.
- Multiple loans for those who are renovating or building a home, including loans with interest-only payments during construction.
- Offers home equity loans and lines of credit.
- Offers down payment assistance and loans for underserved borrowers, including ITIN loans and loans with flexible qualifications in certain communities.
- Interest rates are on the low side relative to other lenders, according to the latest federal data.
- Borrowers can enter their information (including their desired loan amount, down payment and zip code) into the lender’s Mortgage Quote Comparison tool and receive a customized rate quote.
- Home equity loans are not available in all locations served by Flagstar.
- In 2022, the lender was fined for violating laws regarding properties in flood zones.
- Offers several low-down-payment loan options, including FHA, VA, USDA and the PNC Community Loan.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage rates are lower than the industry average, according to the latest federal data.
- Jumbo loans available with 5% down payment.
- Doesn't offer renovation mortgages or home equity loans.
- In-person service is not available in every state.
- You’ll have to create an account or supply personal data to get answers by phone.
Andrews Federal Credit Union: NMLS#410421
620
3%
- Caters to first-time home buyers with incentives and education.
- Provides extra support for military borrowers, including branches near bases in Germany, Belgium and the Netherlands.
- Offers HELOCs and home equity loans at competitive interest rates.
- Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
- Does not offer renovation or construction home loans.
- Rates are on the low side, according to the latest federal data.
- An online tool makes it easy to customize a rate quote online, with no contact information required.
- “Lock & Shop” lets you secure a rate for up to 90 days while you house-hunt, and switch to a lower one if rates drop while you shop.
- Origination fees are on the higher end, according to the latest federal data.
- Doesn't offer home equity lines of credit or renovation loans.
- Online chat is available only in the logged-in experience.
- Offers a wide variety of loan options, including construction loans, programs for early career doctors, a wide variety of jumbo loans and home equity lines of credit.
- Proprietary grant program can help borrowers afford down payment and closing costs.
- Mortgage rates are lower than industry average, according to the latest federal data.
- Customized rates aren't available online without contacting the lender.
- For borrowers who prefer to apply in person, branches are limited mostly to the South and East.
- Mortgages aren’t available in all 50 states.
Navy Federal: NMLS#399807
National
0%
- Offers unique loan options aimed at military borrowers, such as a proprietary loan called Military Choice that works as an alternative to VA loans.
- 24/7 customer service supports borrowers stationed overseas.
- Offers home equity loans and lines of credit.
- Borrowers must join the credit union before applying for a mortgage.
- The lender does not offer renovation or construction loans.
- When we tried their customer service line, we sometimes waited longer than 10 minutes before being connected with a representative who could answer our questions.
- Borrowers can apply entirely online. The lender is also very transparent about what borrowers can expect from the process, including nontraditional customers.
- Borrowers do not need to become members of the credit union until they’ve reached the closing process, meaning that interested home buyers can apply and get rate offers without committing to membership.
- Offers customized rate quotes, including a detailed breakdown of estimated closing costs.
- Doesn’t offer renovation loans.
- Joining the credit union adds a step to the application process.
5 tips for finding the best mortgage lenders
Here are five tips to find the best lender for you.
1. Get your finances in good shape
The credit score required to get a mortgage varies by the type of loan and the lender. With a higher score, you'll have more choices of loan programs and you'll qualify for lower interest rates.
Before shopping for lenders, find out your credit score and make sure your credit reports are accurate. NerdWallet offers a free credit score and report, updated weekly, using TransUnion data.
You can receive free copies of your reports from each of the three major credit bureaus through the government-mandated AnnualCreditReport.com website. Check the reports carefully, and dispute any errors.
Next, work on improving your credit. Pay bills on time, and work on paying off credit card balances. Lowering your debt will also improve your debt-to-income ratio, or DTI, another key element that lenders evaluate. An ideal DTI ratio for a mortgage is under 36%. Reducing your debt payments will also free up money to save for a home down payment.
2. Learn what kind of mortgage is right for you
A variety of home loans are available to satisfy different needs. For example:
VA loans can help active and veteran military members and USDA loans are available for rural homebuyers. Neither require a down payment.
FHA loans have lower credit score requirements than other mortgages and require as little as 3.5% down.
Conventional loans are generally geared to borrowers with good credit, and some require as little as 3% down.
Jumbo loans are used to finance properties that are too expensive for most conventional loans.
Home loans also vary by term length, such as 15 or 30 years, and by how the interest rate works. With fixed-rate mortgages, the interest rate stays the same for the entire loan term; with an adjustable-rate mortgage, the interest rate periodically increases or decreases, after an initial fixed-rate period.
Some lenders offer a broad mix of mortgages; others specialize in certain types. Once you understand the general options, you can seek out the lenders that offer what you need.
3. Compare rates from multiple mortgage lenders
Search for the best mortgage rates online from lenders that offer the types of loans you want. Keep in mind that the rate quote you see is an estimate. A lender will have to pull your credit information and process a loan application to provide an accurate rate, which you can then lock in if you’re satisfied with the product.
Once you have several quotes from lenders, narrow the list to those with the lowest rates. The total interest you pay over the life of the loan is a big figure, and a lower rate can save you thousands of dollars.
» MORE: Use our mortgage calculator to find out your monthly mortgage payment.
4. Get preapproved
Apply for mortgage preapproval with more than one lender before you start shopping for a home. A mortgage preapproval letter shows sellers and real estate agents that you're a serious buyer. It's evidence that a lender has evaluated your finances and figured out how much you can afford to borrow.
Getting preapproved now will also save time later. When you're ready to make an offer on a home, lenders will have the information they need to process your home loan.
To get preapproved, you’ll have to provide information about your income, debts and assets. Lenders typically require:
Social Security numbers for yourself and any co-borrowers.
Savings, checking and investment account information.
Information about outstanding debt obligations, including credit card, car loan, student loan and other balances.
Two years of tax returns, W-2s and 1099s.
Salary and employer information.
Information about how large a down payment you can make and where the money is coming from.
5. Compare loan estimates and choose the best deal
A loan estimate is a document a lender must provide after you've applied for a loan and have provided certain information, including the address of the property you want to buy. The document will spell out important details about your loan, including the interest rate, monthly payment, fees and estimated closing costs.
Compare loan estimates from at least three lenders. Read each line to make sure the details match what you expected, and ask questions about anything you don't understand. Then carefully compare costs and terms to choose the best deal for you.
» MORE FOR CANADIAN READERS: How to choose a mortgage lender
More from NerdWallet
Last updated on July 1, 2024
Methodology
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. The highest-scoring lenders in our overall star ratings rubric appear on this page. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
NerdWallet's 5 Tips for Finding the Best Mortgage Lender
- Better: Best for loan variety
- NBKC: Best for FHA and VA loans
- Guaranteed Rate: Best for HELOCs
- Flagstar: Best for overall mortgage experience
- PNC: Best for first-time home buyers and FHA loans
- Andrews Federal Credit Union: Best for first-time home buyers
- Pennymac: Best for FHA loans
- Truist: Best for HELOCs
- Navy Federal: Best for VA loans
- Alliant: Best for jumbo loans
