10 Best Mortgage Lenders of 2023

Rocket Mortgage is one of the nation’s largest and best-known mortgage lenders. Previously, it was just the tech-driven, online arm of Quicken Loans, but last year the company leaned full force into its Rocket branding.

Despite the change in names, Rocket Mortgage still offers the same perks Quicken was known for: Highly rated customer service, a wide variety of loan products and a lender that, more often than not, acts as your servicer after closing — something virtually unheard of in today’s market. Rocket’s mortgage options include conventional, FHA, VA and jumbo loans, as well as refinancing for existing homeowners.

One of the most notable benefits of Rocket Mortgage is the accessibility of its customer service representatives. You can get help via phone or online chat, and experts are available every day of the week until at least 8 p.m., and some days as late as midnight.

Best Mortgage Marketplace: LendingTree

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Why we chose it: LendingTree is an easy-to-use loan-shopping website that lets you secure mortgage quotes, compare lender offers and start the mortgage process by filling out a single form.

Shopping around for your mortgage can help you get a better deal on your loan, but doing that manually — which requires filling out an application for several different lenders — can be difficult and time-consuming. LendingTree is among the vendors that allow users to shop from hundreds of lenders, all with one single application.

You enter a bit of information about your finances, credit and homebuying goals and LendingTree matches you with five lenders. You get preliminary quotes shortly via email.

The downside of vendors such as LendingTree is that using them can often result in a flood of calls and messages from eager lenders — sometimes for weeks and months after your initial application. While this does indicate companies are looking to compete for your business (which could mean lower rates), some users find these outreach tactics bothersome.

Best for First-Time Homebuyers: Guild Mortgage

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Why we chose it: Guild Mortgage offers a combination of strong customer service and targeted first-time homebuyer programs. Some buyers may even be eligible for a zero-down mortgage.

Most first-time buyers struggle with two challenges: Saving for a down payment and securing a good credit score. California-based Guild Mortgage has options to help with both.

Its zero-down program combines a low-cost FHA loan with down payment assistance — which, in many cases, doesn’t need to be repaid. The company also offers loan programs for credit scores down to 540. Although borrowers will need at least a 10% down payment on these loans, this minimum score is about as low as it gets.

Guild’s highly rated customer satisfaction — both in creating mortgages and servicing them — is worth noting too. You can reach the company by phone or at one of its 200-plus brick-and-mortgage locations across the country.

Best Bank Lender: Bank of America

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Why we chose it: Bank of America boasts a wide variety of loan products and thousands of branch locations across the nation, making it convenient for borrowers who want in-person service.

Bank of America’s big selling points are its thousands of branch locations and wide array of mortgage products. Borrowers can get FHA, VA, conventional or jumbo loans, and there is even a loan product specifically for doctors (which allows them to exclude their looming student loan debt, making for easier qualification).

For first-time buyers, there are also several low down payment options and two grant programs that can help cover your down payment and closing costs. And for borrowers who currently bank with Bank of America, reduced fees and interest rates could even be in the cards.

Best VA Lender: Veterans United

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Why we chose it: Veterans United solely focuses on VA loans for military members and veterans. It boasts strong customer reviews and an easy, online application process.

Veterans United is a VA lender only, focusing on purchase loans and refinancing for military members, veterans and their families. Its biggest selling point is its easy, online process, its free VA homebuying course and its glowing customer reviews.

While its limited focus means Veterans United isn’t rated by JD Power, a leading agency that scores customer service, the lender currently has 4.9 stars out of 5 on Trustpilot, with 99% of past customers calling their experience either “excellent” or “great.” Its customer service is also available 24 hours a day, seven days a week, to better serve military members in different time zones.

Though Veterans United does have some physical branches, they’re not in every market (nor every state). If you’re looking for a VA loan lender with more brick-and-mortar locations, consider Navy Federal, which has 300-plus branches nationwide.

Best Online Lender: Better

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Why we chose it: Better‘s all-digital approach helps speed up the mortgage process and remove hassle. Borrowers typically close 10 days faster than industry averages.

Better is a fairly new lender that aims to improve the mortgage process with its all-online, tech-driven approach. The company says borrowers can get a mortgage preapproval within minutes. There are no origination fees — because, Better says, the company shaves its processing costs through automation.

Better offers FHA, conventional and jumbo loans and the company claims average closing time that are 10 days faster than industry averages. Another perk is that borrowers can monitor their mortgage at all times through a personal loan dashboard. This tool also stores their preapproval letter for easy access.

Best for Self-Employed Buyers: Caliber Home Loans

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Why we chose it: Caliber Home Loans has a mortgage program exclusively designed for self-employed borrowers. There are both fixed- and adjustable-rate options, and loan amounts go up to $3 million.

Self-employed professionals can have difficulty qualifying for a mortgage, given their often-variable income and tax returns that usually don’t reflect their full income (due to write-offs). But Caliber has created a program with these borrowers in mind.

Dubbed the SmartSelf program, it offers self-employed borrowers a variety of loan options and terms, and qualification is based on the borrower’s average bank account deposits from the last 12 to 24 months. The lender also offers other loan programs, including low-down-payment options; FHA, VA, USDA and conventional loans; and investor-specific mortgages.

Best for Variety of Products: Freedom Mortgage

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Why we chose it: Freedom Mortgage has an extensive mortgage product selection and puts homeownership in reach for a wide range of people. The company is available for first mortgages and refinancing solutions for conventional, FHA, VA and USDA loans

Not everyone wants or qualifies for a conventional mortgage. Freedom Mortgage is one of our best mortgage lenders because it offers a wide range of mortgage options, including conventional and government-backed loan options.

One advantage of government-backed loans is that they generally come with lower interest rates than conventional loans. They also may be available to people with below-average credit scores.

Freedom Mortgage offers its customers the Eagle Eye alerts program that can help save money. It notifies homeowners after closing if interest rates drop, there’s an offer or discount available that would benefit them or their home value increases.

Best for Brick-and-Mortar Service: Flagstar Bank

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Why we chose it: Flagstar Bank is a full-service banking and lending company founded in 1987. The company operates nationally online and out of more than 150 branches across five states.

Flagstar Bank began as a federal savings bank with one branch in Michigan but grew to one of the largest bank mortgage originators in the U.S. Homebuyers and homeowners with diverse needs are likely to find a mortgage solution that suits them among Flagstar’s long list of mortgage products. These include conventional, VA, FHA and construction loans. Flagstar also offers several options for refinancing your home, including cash-out refinancing, home equity loans and home equity lines of credit (HELOCs).

The company provides a full online experience nationally. At the beginning of the mortgage application process, the company assigns customers to a loan advisor who can see them through the entire mortgage process, from prequalifying to preapproval to closing.

Customers who prefer to do business in person may visit one of the bank’s 150 branches. Branch-level service is available in Michigan (Flagstar’s home state), Indiana, California, Wisconsin and Ohio.

Best for Rate Transparency: Chase Bank

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Why we chose it: Chase Bank is the largest bank in the U.S., offering many products, including credit cards, checking and savings accounts, loans and business solutions. The company has been in business since 1799 and is one of the largest mortgage lenders in the nation.

Chase Bank’s stature in the mortgage industry speaks for itself. The institution offers a full slate of mortgage options, including VA, FHA jumbo and conventional mortgages. It offers both purchase loans and refinancing options. The company also guarantees that your loan will close on time or you’ll receive $5000 in compensation.

In addition, Chase offers a relationship pricing feature for existing customers. If you have a Chase checking or savings account or a Chase credit card in your name, you may be eligible for a discounted mortgage rate that’s up to 0.5% less than non-Chase customers get.

Chase Bank offers an excellent online experience. We appreciate that the institution publishes updated mortgage rate information daily on many different types of loans, including fixed-rate and adjustable. You can also check your credit score for free on the website.

The one drawback of working with Chase is that the company has stricter credit qualifications than other lending-focused financial institutions. Credit scores of 669 and below are only deemed “fair” by the company. Generally, lenders don’t offer borrowers with fair credit scores the most competitive rates. But for borrowers with good to excellent credit, Chase is a great option to consider.

Other Lenders We Considered

When compiling this list, we considered a variety of lenders offering mortgages in all 50 states. Here are some of the other noteworthy companies we looked at:

Ally

Ally doesn’t charge various lender fees that are common in the industry — such as application, processing, underwriting and origination fees. However, its mortgage product offerings are limited to just conventional and jumbo loans. If you’re looking for VA, USDA or FHA loans, this isn’t the lender for you.

Guaranteed Rate

Guaranteed Rate offers a wide variety of loan types, ranging from fixed-rate and adjustable-rate mortgages to VA, FHA, USDA and jumbo loans. The company is known to have low interest rates and an online application process that is simple and convenient. Unfortunately, home equity loans are not currently offered by Guaranteed Rate.

NBKC BANK

NBKC Bank has many different loan products with special attention given to VA loans. Its low fees and competitive interest rates make it a great option for those who meet its credit criteria. The company’s brick-and-mortar locations are very limited, with only four stores around the Kansas City area. NBKC Bank does not have any down payment assistance programs, and HELOCs are only offered in the Kansas City area.

New American Funding

New American Funding is a direct lender offering jumbo, conventional, FHA and VA loans among other specialized products. It has a strong emphasis on supporting first-time and minority homebuyers. Although the company provides consistently competitive rates, its origination fees tend to be significantly higher than many other lenders’ fees.

Mortgage Lenders Guide

Mortgage loans can be tricky to understand, particularly for first-time homebuyers. There are many different types of loans, each with its own pros, cons and requirements. Want to learn more about home mortgages? Here’s a great place to start.

How to choose a mortgage lender

The best mortgage lender for you depends on your financial circumstances, the home you’re buying, the down payment amount you can afford and many other factors. If you’re a first-time homebuyer and unfamiliar with the mortgage landscape, the best lender for you might be the one that offers the widest variety of mortgage products. A loan advisor can help guide you to the best mortgage for your needs — some lenders specialize in certain products.

Choosing a mortgage lender is a tremendous decision that will have financial consequences for years to come. So, get as much information as you need and have all your questions answered before choosing a lender. Shop around by getting rate estimates from multiple lenders. This can help you find the best rate to save you money.

What is the mortgage process?

The first step in the mortgage process should always be information gathering and talking to a mortgage broker. Begin by learning about the many different types of mortgages available in today’s market. There are many options, and each one comes with different eligibility requirements, loan limits and other features. These include:

• Conventional loans: These are the most common type of mortgage. They require at least a 3% down payment and have a limit of up to $647,200 in most parts of the country. In high-cost housing markets, they may go up to $970,800. PMI (private mortgage insurance) is often required for down payments under 20%, and the maximum DTI (debt-to-income ratio, as in how much of your income your credit cards and other debts take up) is 43%.
• FHA loans: FHA mortgages are loans guaranteed by the Federal Housing Administration. FHA loans offer lower credit score requirements than other programs (down to 500 in some cases) and come with competitive interest rates. The minimum down payment is 3.5%, while the maximum DTI is 43%. Mortgage insurance is required both upfront and monthly.
• VA loans: These are mortgages for military members, veterans and certain military spouses. They offer very low rates and require no down payment or PMI. The DTI maximum is 41% for these loans.
• USDA loans: USDA mortgages are loans guaranteed by the U.S. Department of Agriculture. They’re for use in more rural parts of the country and require no down payment. Like VA loans, the DTI max is also 41%.

Getting preapproved

Next, you can apply to get preapproved for a mortgage through a lender. A preapproval tells you how much you can afford. That’s handy information when you’re shopping for a home — it prevents you from setting your sights on a home with asking prices that are too high.

The preapproval process consists of you providing various documents that your lender needs to use to evaluate you. Once approved, the lender will give you your letter and you can start looking for a house.

Finding a home

Once you’ve found a home you wish to purchase, you will submit your offer with your real estate agent. If your offer is accepted, you begin the process leading up to closing on your home.

You’ll be asked to document certain financial information. At this stage of the process, your lender will make a hard credit inquiry and give you the exact terms of your loan, including your interest rate.

Before the lender finally approves you for a loan, a home appraisal is typically required. The formal application process can take up to a month to complete. Most borrowers hire a home inspector to look at the home they’re buying to ensure they’re fully informed about the home’s condition before purchasing it. However, an inspection isn’t mandatory.

When you are approved for a mortgage, your realtor will set up a closing meeting. You’ll get a full accounting of all of the fees you’ll be responsible for. Once you sign on the dotted line, your lender will release the funds to pay off your seller and satisfy other obligations like having a new title drawn up for your home.

What documents do you need to apply for a mortgage?

Lenders want to be certain that you can pay your mortgage every month without undue hardship. So, in addition to performing a formal credit check, they’ll ask you to supply documentation of your financial assets and earning power. The exact documents you’ll need depend on your lender and employment situation, but generally, you can expect to provide the following:

• A copy of your driver’s license or state-issued ID
• Your two most recent pay stubs, W-2s, 1099s and tax returns
• Your two most recent bank statements (checking and savings)
• Your most recent asset statements (401(k)s, IRAs, investment accounts, etc.)

Where can you find current mortgage rates?

Most lenders offer two different kinds of mortgage rates: fixed and variable. With a fixed rate, you’ll have the same interest rate for your entire loan term. On the other hand, adjustable-rate loans have rates that can change over time. Adjustable-rate loans typically have lower rates than fixed-rate ones — at least at the beginning of the loan term.

Mortgage rates change often. Your best bet is to check Money’s current mortgage rates page or monitor Freddie Mac’s weekly mortgage rates survey, which details the week’s average rates for 30-year, fixed-rate loans, 15-year fixed-rate loans and 5/1 adjustable-rate mortgages.

How do mortgage lenders work?

When you apply for a mortgage, lenders assess your creditworthiness — your ability to make timely payments on the loan — before extending credit. Lenders typically review an applicant’s credit score and other financial assets as well as verify income and employment information.

Lenders then determine the loan terms, such as interest rate, down payment and loan amount. After the terms of the loan are negotiated, lenders issue a formal approval letter to the borrower. The loan can then be used to purchase a home or refinance an existing mortgage.

The lender holds the loan until it’s repaid in full, including interest payments and fees. The lender also services the loan, which includes collecting payments and responding to any borrower inquiries.

Once the loan is repaid in full, the lender records the payment and transfers ownership to the borrower. If there are any disputes with the lender during this process, the two sides may need to involve a third-party mediator to resolve the issue or take the dispute to court.

It’s important to understand how mortgage lenders work so you can be sure that your loan is handled properly. A reputable lender will have clear policies and answer all of your questions while guiding you through a fair and transparent process.

How We Chose the Best Mortgage Lenders

Our methodology for choosing the best mortgage lenders involved a number of factors, including:

• Types of loan products: We opted for lenders with a variety of loan products available, including conventional and government-backed loans, as well as fixed- and adjustable-rate options.
• Customer satisfaction: We favored mortgage companies with high satisfaction ratings and reviews, as well as easy-to-reach customer service teams.
• Reputation and transparency: We also evaluated consumer complaints with the Consumer Financial Protection Bureau and the number of regulatory actions filed with the Nationwide Mortgage Licensing System.

Summary of the Best Mortgage Lenders

• Best Customer Service: Rocket Mortgage
• Best Mortgage Marketplace: LendingTree
• Best for First-time Homebuyers: Guild Mortgage
• Best Bank Lender: Bank of America
• Best VA Lender: Veterans United
• Best Online Lender: Better
• Best for Self-Employed Buyers: Caliber Home Loans
• Best for Variety of Products: Freedom Mortgage
• Best for Brick-and-Mortar Service: Flagstar Mortgage
• Best for Rate Transparency: Chase Mortgage