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 |
|---|---|---|---|---|
 Better: NMLS#330511 LEARN MORE on NerdWallet | 620 | 3% | LEARN MORE on NerdWallet | |
620 | 3% | |||
 Rate: NMLS#2611 LEARN MORE on NerdWallet | 620 | 3% | LEARN MORE on NerdWallet | |
 Flagstar: NMLS#417490 LEARN MORE on NerdWallet | N/A | 5% | LEARN MORE on NerdWallet | |
 PNC Bank: NMLS#446303 LEARN MORE on NerdWallet | 620 | 3% | LEARN MORE on NerdWallet |
- Borrowers can apply, lock in a rate and receive a commitment letter within one day.
- Offers both HELOCs and home equity loans with a high borrowing limit of 90% CLTV.
- Offers mortgages for manufactured homes, as well as financing for self-employed borrowers.
- No mobile app; customer service is by email or phone only.
- Borrower must provide contact information to see customized rates.
- Does not offer renovation or construction loans.
- Mortgage rates are on the low side compared to other lenders, according to the latest federal data.
- VA loans represent more than a quarter of purchase volume, a larger share than many lenders NerdWallet reviews.
- Offers a variety of loan types for purchase and refinance, including fixed- and adjustable-rate loans and government options
- HELOCs and no-down-payment loans are available only in the Kansas City metro area.
- Mobile app focuses on online banking, not mortgages.
- You’ll need to share contact information to see customized mortgage rates.
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
- Advertises a HELOC that can be funded in as few as five business days.
- Origination fees are on the high side, according to the latest federal data.
- HELOC requires immediate, full withdrawal of funds.
- Conventional loan terms extend to 40 years, which is unusually flexible.
- Offers options for high-balance mortgages.
- Offers specialized mortgages for professionals, such as doctors and lawyers, starting their careers.
- Reported average time to close (20-30 days) is faster than industry standard.
- The lender’s mobile app is focused on banking, not mortgages.
- Conventional fixed-rate mortgages require a 5% minimum down payment, higher than some competitors.
- Low-down-payment loan options include FHA, VA, USDA and PNC Community Loan.
- Jumbo loans available with minimum down payments of 5%.
- Customizable mortgage rates are posted online.
- Average mortgage rates are on the high side, according to the latest federal data.
- In-person service is not available in every state.
- You’ll have to supply personal data or account info to get answers by phone.
Andrews Federal Credit Union: NMLS#410421
620
3%
- Has a robust and user-friendly tool for customized mortgage rates.
- Easy to qualify for credit union membership.
- Offers HELOCs and home equity loans.
- Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
- Does not offer less common mortgage types, like renovation or construction home loans.
- Easy to personalize a quote and apply online.
- Can lock in a rate before you’re under contract, earlier than most lenders.
- Perks include a 1% interest rate buydown and “refinance later” cash bonus.
- Origination fees are on the higher end, according to the latest federal data.
- Online chat is available only in the logged-in experience.
- No home equity lines of credit or renovation loans.
- Offers mortgage options focused on affordability.
- Convenient online application.
- Offers a HELOC and construction loans.
- HELOCs are not available in every state.
- Borrowers must reach out for customized rates.
Navy Federal: NMLS#399807
National
0%
- Offers unique no-down-payment and no mortgage insurance loan options for military and civilian borrowers.
- 24/7 customer service supports borrowers stationed overseas.
- Has both home equity loans and lines of credit.
- Borrowers must join the credit union before applying for a mortgage.
- Does not offer FHA, renovation or construction loans.
- We sometimes waited longer than 10 minutes before connecting with a customer service representative.
- Mortgage borrowers do not need to become members of the credit union until they’ve reached the closing process, so interested home buyers can apply without committing to membership.
- Sample rates are displayed upfront, and it's easy to get detailed, personalized rates without providing any personally identifying information.
- No application fee.
- Customer service can be difficult to access as a non-member and may require sharing personal information.
- Home equity loans are not available.
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
- Rate: Best for HELOCs
- Flagstar: Best for overall mortgage experience
- PNC Bank: 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
