Amy FontinellePersonal Finance Expert
Amy Fontinelle is a freelance writer, researcher and editor who brings a journalistic approach to personal finance content. Since 2004, she has worked with lenders, real estate agents, consultants, financial advisors, family offices, wealth managers, insurance companies, payment companies and leading personal finance websites. Amy also has extensive experience editing academic papers and articles by professional economists, including eight years as the production manager of an economics journal.
Chris JenningsDeputy Editor, Loans & Mortgages
Chris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a number of outlets, including Yahoo Finance, MSN, Fox Business, and GOBankingRates.
Amy Fontinelle,
Amy FontinellePersonal Finance Expert
Amy Fontinelle is a freelance writer, researcher and editor who brings a journalistic approach to personal finance content. Since 2004, she has worked with lenders, real estate agents, consultants, financial advisors, family offices, wealth managers, insurance companies, payment companies and leading personal finance websites. Amy also has extensive experience editing academic papers and articles by professional economists, including eight years as the production manager of an economics journal.
Chris Jennings
Chris JenningsDeputy Editor, Loans & Mortgages
Chris Jennings is a writer and editor with more than seven years of experience in the personal finance and mortgage space. He enjoys simplifying complex mortgage topics for first-time homebuyers and homeowners alike. His work has been featured in a number of outlets, including Yahoo Finance, MSN, Fox Business, and GOBankingRates.
Personal Finance Expert, Deputy Editor, Loans & Mortgages
Fred ChiltonMortgages, Real Estate Expert
Fred Chilton is a respected mortgage broker with an impressive career that spans over 12 years in the finance, real estate, and mortgage sectors. For the past seven years, he has leveraged his extensive knowledge and expertise to help clients navigate the complex mortgage brokerage landscape. Fred’s in-depth understanding of financial markets and his practical experience in real estate transactions position him as a distinguished expert in his field.
Fred’s journey in the finance industry began with a passion for understanding market dynamics and a commitment to helping individuals achieve their homeownership and investment goals. His transition into mortgages was driven by a desire to have a more direct impact on people’s lives, guiding them through one of their most significant financial decisions.
Beyond his role as a mortgage broker, Fred has made significant contributions to the broader real estate and finance communities. He has been a featured speaker at the Austin Board of Realtors, where he shares his insights on market trends, lending practices and strategies for success in the rapidly evolving real estate market.
Fred’s areas of expertise encompass a broad spectrum of finance, real estate and mortgage disciplines. He is particularly skilled in navigating complex loan processes, developing tailored financing solutions, and providing strategic advice on property investment.
A key to Fred’s success has been his dedication to continuous learning and adaptation. The financial landscape is perpetually changing, and Fred stays ahead of the curve by immersing himself in the latest industry research, regulatory developments and technological advancements. This proactive approach has enabled him to offer cutting-edge solutions to his clients and maintain a competitive edge in the market.
Expert Reviewed
Fred Chilton
Fred ChiltonMortgages, Real Estate Expert
Fred Chilton is a respected mortgage broker with an impressive career that spans over 12 years in the finance, real estate, and mortgage sectors. For the past seven years, he has leveraged his extensive knowledge and expertise to help clients navigate the complex mortgage brokerage landscape. Fred’s in-depth understanding of financial markets and his practical experience in real estate transactions position him as a distinguished expert in his field.
Fred’s journey in the finance industry began with a passion for understanding market dynamics and a commitment to helping individuals achieve their homeownership and investment goals. His transition into mortgages was driven by a desire to have a more direct impact on people’s lives, guiding them through one of their most significant financial decisions.
Beyond his role as a mortgage broker, Fred has made significant contributions to the broader real estate and finance communities. He has been a featured speaker at the Austin Board of Realtors, where he shares his insights on market trends, lending practices and strategies for success in the rapidly evolving real estate market.
Fred’s areas of expertise encompass a broad spectrum of finance, real estate and mortgage disciplines. He is particularly skilled in navigating complex loan processes, developing tailored financing solutions, and providing strategic advice on property investment.
A key to Fred’s success has been his dedication to continuous learning and adaptation. The financial landscape is perpetually changing, and Fred stays ahead of the curve by immersing himself in the latest industry research, regulatory developments and technological advancements. This proactive approach has enabled him to offer cutting-edge solutions to his clients and maintain a competitive edge in the market.
Mortgages, Real Estate Expert
Expert Reviewed
Updated: Jun 3, 2024, 8:30am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Not all mortgages are created equal. Some mortgage lenders focus on a speedy preapproval process, while others may offer discounts on the interest rate or lower closing costs.
We compared dozens of lenders to come up with this comprehensive list of the best mortgage lenders to make mortgage comparison shopping easier, whether you’re looking to buy a home or are wondering if 2024 will be a good time to refinance an existing mortgage.
Why you can trust Forbes Advisor
Read more
Best Mortgage Lenders of 2024
- Flagstar Bank: Best Mortgage Lender for Alternative Credit Data Eligibility
- Bank of America: Best Mortgage Lender for Nationwide Availability
- Chase: Best Mortgage Lender for Relationship Discounts
- Guaranteed Rate: Best Mortgage Lender for Fast Closing
- PenFed Credit Union: Best Mortgage Lender for Low Fees
- Rocket Mortgage: Best Mortgage Lender for Flexible Terms
- New American Funding: Best Mortgage Lender for Low Minimum Credit Scores
- PNC Bank: Best Mortgage Lender for Medical Professionals
- Mr. Cooper: Best Mortgage Lender for Interest Rate Discounts
- Truist: Best Mortgage Lender for Applying Online
- Ally: Best Mortgage Lender for Fast Preapproval
Best Mortgage Lender for Alternative Credit Data Eligibility
Flagstar Bank
Compare rates from participating lenders in your area via Bankrate.com
620
Lower than the national average
0% to 3.5%
Editor's Take
Flagstar Bank Mortgage offers all major home loan options—conventional, jumbo, construction and government-backed loans—plus several discount programs, including discounts for borrowers whose employers have a relationship with Flagstar, incentives for returning customers and discounts for first responders, active military and veterans.
Why We Like It
In addition to a wide selection of mortgage loan options, Flagstar will consider alternative credit data for certain products. Some examples include rent and utility payments, monthly insurance premiums and regular savings deposits.
What We Don’t Like
While Flagstar can originate mortgages nationwide, it only has physical branch locations in Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio and Wisconsin.
Who It’s Best For
Flagstar is best for borrowers who may need alternative credit data to qualify for a mortgage and live in one of the nine states where the lender has physical branches.
Pros & Cons
- Both online and branch locations (in a few states) available
- Convenient customer service hours
- Alternative data, such as utility and rent payments, are considered
- Low minimum credit score mortgages offered
- Branch locations aren’t available in every state
Lender Details
How To Apply
Flagstar Bank offers several ways for customers to get a mortgage. They can apply online or visit a lender in person. They can also visit a branch location in Indiana, Michigan, Ohio and Wisconsin. Customer support hours, including for email, phone and online chat, are Monday through Friday, 7:30 a.m. to 9 p.m. ET and Saturday 8:30 a.m. to 6 p.m ET. Preapproval takes less than three days.
Speed
Flagstar’s average closing time is 35 days, which is shorter than the industry average. In some cases, closing can occur in as few as 11 days.
Eligibility
- Minimum credit score of 620
- Minimum down payment of 0% for VA and USDA loans, 3% for conventional loans and 3.5% for FHA loans
- Alternative credit data, such as rent, cell phone and utility payments, is accepted
Loan Types
Flagstar Bank offers conventional and jumbo mortgages in fixed- and adjustable-rate structures, plus FHA, VA and USDA loans. It also offers construction, renovation and specialty loans, including loans for multiple properties and loans in high-cost areas. Home equity loans are available in limited areas. You can enter your ZIP code on the Flagstar website to find out if you qualify for a home equity loan.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | Limited | |
Specialty | ✓- Multiple Property Loans, High-Balance Loans and Jumbo Adjustable Rate |
Best Mortgage Lender for Nationwide Availability
Bank of America
Compare rates from participating lenders in your area via Bankrate.com
620
Lower than the national average
0% to 3.5%
Editor's Take
Bank of America Mortgage stands out for its online and in-person presence in more than 4,300 financial centers. Its Digital Mortgage Experience provides mortgage customers located anywhere in the country with online applications, electronic signatures for documents and online rate locks. Borrowers also can connect with a lending specialist online.
Why We Like It
Bank of America is the second-largest bank in the U.S. and offers mortgages nationwide. It also has branches in 38 states and Washington, D.C., making it a convenient choice for many borrowers.
What We Don’t Like
Despite its national presence, Bank of America doesn’t offer USDA loans. Preapproval letters also can take up to 10 business days to receive.
Who It’s Best For
Bank of America is best for borrowers seeking a large bank with a seamless online application experience and access to physical branches.
Pros & Cons
- You can qualify for a no-PMI, low down payment mortgage
- Alternative credit data, such as utility and rent payments, are considered
- Borrowers have the option to apply online or in person
- The bank offers several mortgage discount programs
- The lender does not offer USDA loans
- Preapproval letter takes 10 days to receive
Lender Details
How To Apply
Borrowers can apply online or in person. Customer support via phone is available Monday through Friday, 8 a.m. to 10 p.m. ET and Saturday 8 a.m. to 6:30 p.m. ET.
Speed
The lender’s average closing time is between 30 to 45 days, which is about the industry average.
Eligibility
- Minimum credit score of 620
- Minimum down payment of 0% for VA loans, 3% for the Affordable Solution Mortgage and 3.5% for FHA loans
- Alternative credit data, such as rent and utility payments, is accepted
Loan Types
Bank of America offers conventional and jumbo mortgages in fixed- and adjustable-rate structures, FHA and VA loans and the Affordable Solution Mortgage, which doesn’t require private mortgage insurance. The lender doesn’t offer USDA loans.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓- Affordable Solution Mortgage |
Best Mortgage Lender for Relationship Discounts
Chase
4.6
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Minimum credit score
620
Mortgage rates
Lower than the national average
Minimum down payment
0% to 15%
Compare rates from participating lenders in your area via Bankrate.com
620
Lower than the national average
0% to 15%
Editor's Take
Chase Mortgage is one of the nation’s largest mortgage lenders. It offers existing customers access to reduced processing fees and lower rates.
Why We Like It
Existing Chase customers get access to lower rates, up to 0.25%, if they have at least $500,000 in deposits and/or investments. Chase also offers rate discounts to its mortgage customers for new deposits and investments brought to Chase.
What We Don’t Like
Chase’s mortgage discounts only apply to existing customers. Also, some loan products aren’t available in all states.
Who It’s Best For
Mortgages from Chase are best for existing customers who qualify for relationship discounts.
Pros & Cons
- Low down payment loans available
- Flexible credit and income requirements for certain loans
- Discounts for existing Chase customers and mortgage borrowers
- Borrowers receive $5,000 through the Chase Closing Guarantee ($20,000 through July 27, 2024) if the closing date is missed
- Doesn’t offer USDA loans
- Mortgages are not available in Hawaii or Alaska
- Chase does not currently offer home equity loans; new HELOC applications are paused
Lender Details
How To Apply
Borrowers can apply online for a Chase mortgage. Preapproval can take up to two days.
Speed
For conventional loans, Chase offers a closing guarantee that it will close loans within 21 calendar days after receiving a complete application package (except for co-op properties).
Eligibility
- Minimum credit score of 620
- Minimum down payment of 0% for VA loans, 3% for some conventional loans and DreaMaker loans, 3.5% for FHA loans and 15% for jumbo loans
Loan Types
Chase offers fixed- and adjustable-rate conventional and jumbo mortgages, FHA loans, VA loans and low down payment loans.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ – DreaMaker |
Best for First-Time Home Buyers
Guaranteed Rate
Compare rates from participating lenders in your area via Bankrate.com
620
Lower than the national average
0% to 3.5%
Editor's Take
Guaranteed Rate is an online mortgage lender that offers conventional loans with fixed- and adjustable-rate terms, government-backed loans, interest-only loans, jumbo loans and several other mortgage products.
Why We Like It
Guaranteed Rate has the fastest closing time among the lenders on our list. Borrowers that utilize the lender’s Same Day Mortgage can close in as few as 10 days. In addition, Same Day Mortgage borrowers can get their loan approved in one day.
What We Don’t Like
While Guaranteed Rate markets a speedy mortgage process, it can’t guarantee you’ll close or be approved for a loan within that timeframe.
Who It’s Best For
Guaranteed Rate is best for borrowers who prefer or require an online application process and need to close fast.
Pros & Cons
- Operates in all 50 states
- Displays current rates online
- No lender fees for VA loan borrowers
- Some other lenders have faster preapproval times
Lender Details
How To Apply
Borrowers can apply online or in person at one of Guaranteed Rate’s locations. Customer support is available by phone Monday through Friday, 8:30 a.m. to 5:30 p.m. CT. Expect a one- to two-day turnaround on preapproval letters.
Speed
Closing takes as few as 10 days with Guaranteed Rate’s Same Day Mortgage.
Eligibility
- Minimum credit score of 620
- Minimum down payment of 0% down for VA loans, 3% for some conventional loans, 3.5% for FHA loans
Loan Types
Guaranteed Rate offers fixed- and adjustable-rate mortgages, including conventional and jumbo mortgages, FHA and VA loans and interest-only mortgages. Guaranteed Rate also offers home equity lines of credit (HELOCs).
Loan Type | Yes | No |
---|---|---|
HELOC | ✓ | |
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Specialty | ✓- Interest-only mortgages |
Best Mortgage Lender for Low Fees
PenFed Credit Union
Compare rates from participating lenders in your area via Bankrate.com
650
Lower than the national average
0% to 3%
Editor's Take
PenFed Credit Union Mortgage is a federal credit union open to anyone. PenFed specializes in VA loans but also offers FHA, conventional and jumbo loans.
Why We Like It
PenFed charges relatively low lender fees. For its VA loans, the lender charges a flat $995 origination fee. In comparison, most VA lenders charge an origination fee between 0.5% and 1% of the loan amount. For its non-VA loans, PenFed charges a 1% mortgage origination fee.
What We Don’t Like
PenFed doesn’t consider alternative credit data for loan eligibility, and its mortgage product lineup is somewhat limited.
Who It’s Best For
PenFed will likely most benefit borrowers who are seeking a VA loan and want to save on upfront lender fees.
Pros & Cons
- Low advertised rates
- Reasonable lender fees
- Low and no down payment options available
- Limited mortgage product lineup
- Alternative data is not considered
Lender Details
How To Apply
Borrowers can apply online or at its branches in Maryland, Virginia and Washington, D.C. Customer support by phone is available Monday through Friday from 8 a.m. to 8 p.m. ET, Saturday from 8 a.m. to 5 p.m. ET. Preapproval takes less than three days.
Speed
The average closing time is 35 days, which is shorter than the industry average. In some cases, closing can be as short as 11 days.
Eligibility
- Minimum credit score of 650 or higher for conventional and VA loans, and 700 for jumbo loans
- Minimum down payment of 0% for VA loans and 3% for some conventional loans
Loan Types
PenFed offers fixed conventional, jumbo and VA loans as well as home equity loans and refinancing.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ – First Time Home Buyer Advantage |
Best Mortgage Lender for Flexible Terms
Rocket Mortgage
On Rocket Mortgage's Website
580
Higher than the national average
0% to 3.5%
Editor's Take
Rocket Mortgage is an online mortgage lender that offers a large selection of purchase and refinance home loans.
Why We Like It
We picked Rocket Mortgage for its products that offer borrowers some flexibility. For instance, the lender’s YOURgage is a home loan option that allows borrowers to choose between a loan term of eight to 29 years.
The company also offers One+ By Rocket Mortgage, a low down payment option. With this option, borrowers only need to put down 1% and Rocket Mortgage will cover an additional 2%.
What We Don’t Like
According to our research, Rocket Mortgage interest rates tend to run higher than the national average. In addition, the average time to close a purchase loan at Rocket Mortgage is 36 days, which is slightly higher than other lenders on this list.
Who It’s Best For
Rocket Mortgage is ideal for borrowers who prefer a fully digital mortgage experience and flexible loan terms.
Pros & Cons
- Flexible-term mortgages are available, from eight to 29 years; this is in addition to the standard 30-year and 15-year fixed-rate mortgage options
- Offers a completely digital mortgage experience
- Customer service hours are extensive
- Doesn’t offer USDA loans
- Doesn’t offer HELOCs
- Doesn’t offer land loans or loans to purchase foreclosures
Lender Details
How To Apply
Borrowers can apply online. Phone support is available Monday through Friday, 5 a.m. to 5 p.m. PT. Chat support is available from 5 a.m. to 5 p.m. PT, seven days a week. The lender can preapprove loans within eight minutes.
Speed
As of February 2024, the average time to close a conventional refinance with Rocket Mortgage is 21 days, and the average time to close a conventional purchase loan is 36 days.
Eligibility
- Minimum credit score of 580 for FHA and VA loans, 620 for conventional mortgages and 680 for jumbo loans
- Minimum down payment of 0% for VA loans, 3% for some conventional loans and 3.5% for FHA loans
- Alternative credit data, such as rent and utility payments, is accepted
Loan Types
Rocket Mortgage’s product line includes fixed and adjustable-rate mortgages, conventional, jumbo, FHA and VA loans. It also offers its own conventional loan, YOURgage, a custom-term, fixed-rate mortgage. Finally, its FHA streamline refinance loan allows existing FHA borrowers to refinance at a lower rate with less paperwork and no appraisal required. The lender offers home equity loans, but it doesn’t offer USDA loans or HELOCs.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓- YOURgage Flexible-Term Mortgage |
Best Mortgage Lender for Low Minimum Credit Scores
New American Funding
On New American Funding's Website
580
Lower than the national average
3% to 10%
Editor's Take
New American Funding is one of the largest, privately owned direct mortgage lenders in the U.S. It offers most mortgage types, fast closing times and customizable terms through its I CAN Mortgage.
Why We Like It
New American Funding’s minimum credit score requirements are as low as 580 for some loan types (and 620 for others), making it a good option for borrowers with limited credit.
What We Don’t Like
New American Funding doesn’t disclose its fees online, so you’ll need to ask your loan officer for a breakdown of the closing costs.
Who It’s Best For
New American Funding is best for borrowers with less-than-stellar credit profiles.
Pros & Cons
- Wide variety of loan options, including mortgages with customizable term lengths and non-QM loans
- Commitment to helping Latino and Black borrowers access homeownership
- Fast preapproval times
- Does not operate in all 50 states
Lender Details
How To Apply
Borrowers can apply online and preapproval can take one day.
Speed
Closing on a mortgage can take up to 30 days.
Eligibility
- Minimum credit score of 580
- Minimum down payment of 0% for USDA and VA loans, 3% for conventional loans, 3.5% for FHA loans, 5% for I Can mortgages and 10% for jumbo loans
Loan Types
New American offers 15- and 30-year, fixed-rate mortgages, including conventional loans, FHA loans and VA loans. Additionally, it offers a proprietary “I Can” mortgage, rate-buydown loans, ARMs and reverse mortgages.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓- I CAN loans |
Best Mortgage Lender for Medical Professionals
PNC Bank
Compare rates from participating lenders in your area via Bankrate.com
620
Similar to the national average
0% to 3.5%
Editor's Take
PNC Bank Mortgage operates in all 50 states and provides a wide range of mortgage products, including specialized loans for low- and moderate-income borrowers and medical professionals.
Why We Like It
PNC Bank offers a generous mortgage option for medical professionals such as interns, residents, fellows and doctors who have completed their residency in the last five years. With this loan, borrowers can:
- Use gift funds toward their down payment
- Get a loan up to $1 million on a primary residence
- Pay no private mortgage insurance
- Choose from fixed or adjustable rates
What We Don’t Like
PNC Bank doesn’t offer renovation or home equity loans, and its HELOC products aren’t available in every state.
Who It’s Best For
PNC Bank is best for early career medical professionals and low- to moderate-income borrowers who qualify for the lender’s specialized grants and programs.
Pros & Cons
- Low minimum credit score requirements
- Fast preapproval time
- Online and in-person service available
- Several discount programs available
- Ample digital support for existing customers
- Does not offer renovation loans
Lender Details
How To Apply
Borrowers can apply online or in person at a bank location in the following states and Washington D.C.: Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin.
Customer support by phone is available Monday through Thursday from 8 a.m. to 9 p.m. ET, Friday from 8 a.m. to 5 p.m. ET and Saturday from 9 a.m. to 2 p.m. ET. Preapproval can take as little as 30 minutes or up to one day.
Speed
The average closing time is 45 days, which is about the industry average. In some cases, the closing can be as short as 30 days.
Eligibility
- Minimum credit score of 620; 700 for jumbo borrowers
- Minimum down payment of 0% for VA loans, 3% for conventional loans and 3.5% for FHA loans (PNC doesn’t publish its down payment requirements for other loan types)
Loan Types
PNC Bank offers a wide selection of home loans, including conventional, FHA, VA, USDA and jumbo loans, home equity loans and specialty loans for medical professionals.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ – Community (No PMI) Loan, Medical Professional Loan |
Best Mortgage Lender for Interest Rate Discounts
Mr. Cooper
Compare rates from participating lenders in your area via Bankrate.com
580
Similar to the national average
0% to 3.5%
Editor's Take
Mr. Cooper is an online mortgage lender and one of the largest mortgage servicers in the U.S. It offers a standard suite of home purchase and refinance loans, and its advertised rates align with the national average.
Why We Like It
Mr. Cooper offers qualified customers a 1% interest rate reduction for the first year of their mortgage.
What We Don’t Like
The 1% rate markdown is only available on purchase loans for primary residences; jumbo loans, second mortgages and refinance loans don’t qualify.
Who It’s Best For
Mr. Cooper is best for borrowers looking for an initial discount on their monthly payments and who are comfortable working with a fully online mortgage lender.
Pros & Cons
- Low minimum credit score requirements
- Several discount programs available
- Ample digital support for existing customers
- The lender doesn’t offer USDA loans
- There are no brick-and-mortar locations
- The lender doesn’t offer home equity loans or HELOCs
Lender Details
How To Apply
The entire application process takes place online. Customer support by phone is available Monday through Thursday from 7 a.m. to 8 p.m. CT, Friday from 7 a.m. to 6 p.m. CT and Saturday from 8 a.m. to 2 p.m. CT. Preapproval takes less than five hours.
Speed
Closing takes between 30 and 45 days.
Eligibility
- Minimum credit score of 620 for conventional borrowers and 580 for FHA borrowers
- Minimum down payment of 0% for VA loans, 3% for conventional loans and 3.5% for FHA loans
Loan Types
Mr. Cooper offers both mortgages for buyers and refinancers. The lender offers fixed and adjustable-rate conventional and jumbo mortgages, FHA loans and VA loans. It doesn’t offer USDA loans, home equity loans or HELOCs.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ |
Best Mortgage Lender for Applying Online
Truist
Compare rates from participating lenders in your area via Bankrate.com
620
Higher than the national average
0% to 3.5%
Editor's Take
Truist Mortgage is one of the nation’s largest banks and offers a wide array of mortgage products, including several low or no down payment options.
Why We Like It
Truist offers a streamlined digital application experience with a clean and intuitive interface. It also has physical branches if you require in-person assistance.
What We Don’t Like
Our research found that Truist’s advertised mortgage rates tend to run higher than the national average. In addition, the bank only has branch locations in 17 states and Washington, D.C.
Who It’s Best For
Truist is best for borrowers comfortable applying for a mortgage online and located in a state where the bank operates physical branch locations.
Pros & Cons
- Specialty loans are available, such as doctor loans and construction-to-permanent loans
- Applicants can get preapproved in the same day
- More than 2,500 branch locations
- Doesn’t operate in all 50 states
- Doesn’t offer home equity loans
- USDA loans are not available
Lender Details
How To Apply
Borrowers can apply online or in person at one of more than 2,500 branch locations. Applicants can get a same-day mortgage preapproval.
Speed
Closing on a mortgage can take up to 30 days.
Eligibility
- Minimum credit score of 620
- Minimum down payment of 0% for VA and USDA loans, 3% for some conventional loans and 3.5% for FHA loans
Loan Types
Truist offers fixed and adjustable-rate mortgages, VA loans, FHA loans, conventional and jumbo mortgages as well as doctor loans and construction-to-permanent loans.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓- Doctor loans, construction-to-permanent loans |
Best for Fast Preapproval
Ally
Compare rates from participating lenders in your area via Bankrate.com
620
Higher than the national average
3% to 10%
Editor's Take
Ally Bank Mortgage is an online bank and mortgage lender that offers conventional and jumbo loans in all 50 states.
Why We Like It
Ally’s mortgage preapproval time is lightning-fast—within three minutes—which is an advantage in a competitive housing market. Verified preapproval can take longer. Borrowers also can lock their rate within 10 minutes of being preapproved.
What We Don’t Like
Ally doesn’t offer government-backed loans, including FHA, VA or USDA loans. The lender’s average closing time of 36 days is slightly higher than other lenders on this list.
Who It’s Best For
Ally is best for borrowers who need a quick preapproval on a conventional or jumbo loan and prefer working through the mortgage process online.
Pros & Cons
- Loan preapproval takes just three minutes
- Alternative credit data, such as utility and rent payments, are considered in some cases
- Borrowers can lock in their rate within minutes
- There are PMI-free loans for jumbo borrowers who put 10% down
- First-time homebuyers have the HomeReady Loan option available to them
- Ally customers will get a discount that is applied toward closing costs
- The lender doesn’t offer FHA, VA or USDA loans
- There are no brick-and-mortar locations
- Ally does not offer land loans
Lender Details
How To Apply
The application process is 100% online. Because Ally has no brick-and-mortar locations, customers will have to rely on phone correspondence for customer support. The only customer support option is by phone Monday through Friday, 9 a.m. to 9 p.m. ET and Saturday 10 a.m. to 6 p.m. ET. Preapproval takes as little as three minutes.
Speed
The lender’s average closing time is 36 days.
Eligibility
- Minimum credit score of 620
- Minimum down payment of 3% for some conventional programs and 10% for jumbo loans
- Alternative credit data, such as rent and utility payments, is accepted
Loan Types
Ally offers fixed- and adjustable-rate conventional and jumbo mortgages and HomeReady Loans. It doesn’t offer government-backed loans such as FHA, VA or USDA loans.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ – HomeReady Loans |
Summary: Best Mortgage Lenders of 2024
Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Minimum credit score | Mortgage rates | Minimum down payment | Learn More CTA text | Learn more CTA below text | Learn More |
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Flagstar Bank | ![]() | 5.0 | ![]() | 620 | Lower than the national average | 0% to 3.5% | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
Bank of America | ![]() | 4.7 | ![]() | 620 | Lower than the national average | 0% to 3.5% | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
Chase | ![]() | 4.6 | ![]() | 620 | Lower than the national average | 0% to 15% | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
Guaranteed Rate | ![]() | 4.6 | ![]() | 620 | Lower than the national average | 0% to 3.5% | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
PenFed Credit Union | ![]() | 4.4 | ![]() | 650 | Lower than the national average | 0% to 3% | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
Quicken Loans | ![]() | 4.4 | ![]() | 580 | Higher than the national average | 0% to 3.5% | Learn More | On Rocket Mortgage's Website | |
New American Funding | ![]() | 4.4 | ![]() | 580 | Lower than national average | 3% to 10% | Learn More | On New American Funding's Website | |
PNC Bank | ![]() | 4.2 | ![]() | 620 | Similar to the national average | 0% to 3.5% | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
Mr. Cooper | ![]() | 4.1 | ![]() | 580 | Similar to the national average | 0% to 3.5% | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
Truist | ![]() | 3.8 | ![]() | 620 | Higher than the national average | 0% to 3.5% | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
Ally | ![]() | 3.6 | ![]() | 620 | Higher than the national average | 3% to 10% | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com |
The Complete Guide to Mortgages
- Current Conventional Mortgage Rates
- What Is a Mortgage?
- How Does a Mortgage Work?
- Types of Mortgages
- Credit Score Needed To Get a Mortgage
- Will 2024 Be a Good Time for a Mortgage?
- How To Compare Mortgage Rates
- How To Get Preapproved for a Mortgage
- How To Choose a Mortgage Lender
- Recap: Best Mortgage Companies of 2024
- Methodology
- Frequently Asked Questions (FAQs)
Current Conventional Mortgage Rates
What Is a Mortgage?
A mortgage is a loan secured by property. Most Americans don’t have enough cash to pay for a home, so they take out a mortgage that lasts anywhere from a few years to 30 or more. In exchange, a lender has a lien on the property, meaning that if you fail to make payments, the lender can foreclose and take over the home.
Related: What Is A Mortgage?
How Does a Mortgage Work?
A mortgage works much like any other loan. Your lender gives you money to cover the full cost of purchasing a home, and you pay the money back over a set period of time (usually 15 to 30 years). During this time, you’ll pay back the principal (the original loan amount) plus interest (the fee your lender charges for borrowing).
Mortgages are secured loans, and your home acts as collateral. This means your lender has the right to seize the property—through an act known as foreclosure—if you default on your payments.
Types of Mortgages
There are seven common types of mortgages used to purchase a home: conventional, jumbo, Federal Housing Administration (FHA), Department of Veterans Affairs (VA), United States Department of Agriculture (USDA), 203(k) and non-qualified mortgage (Non-QM).
1. Conventional Mortgage
Conventional mortgages are the most common type of home loan. They aren’t insured by any government agency; instead, they’re funded by traditional banks, mortgage finance companies and credit unions.
Conventional mortgages are often more difficult to qualify for than government home loans, like an FHA loan, but they typically cost less.
2. Jumbo Mortgage
A jumbo mortgage is a loan that exceeds the lending limits set by the Federal Housing Finance Agency (FHFA). They’re used to buy expensive properties and are often reserved for borrowers with strong finances and high credit scores. You’ll typically need to put down a larger down payment with a jumbo loan as well.
The FHFA limit for 2024 is $766,550, meaning you can use a jumbo loan to purchase a home worth more than that in many parts of the country. In high-cost areas, the FHFA limit rises to $1,149,825.
3. FHA Loan
FHA loans are insured by the Federal Housing Administration and issued by approved lenders. They’re intended for homebuyers with low income or those unable to qualify for a conventional loan.
The main benefit of FHA loans is that they have less stringent qualification requirements than conventional loans. Borrowers with a credit score of at least 580 can qualify with a down payment as low as 3.5%. If you have enough to put down at least 10%, you can qualify with a credit score as low as 500. However, depending on how much you put down, you’ll be required to pay mortgage insurance premiums for 11 years or the entire life of the loan.
4. VA Loan
If you’re an active-duty service member or a veteran of the U.S. Armed Forces (or a spouse of one), you might qualify for a mortgage backed by the VA.
As long as you still have full entitlement, you won’t have a VA home loan limit, meaning you won’t have to make a down payment. Those with remaining entitlement must abide by VA home loan limits.
Note that, the VA home loan limit refers to the amount the VA will pay back to the lender if you default on the loan; the VA does not limit how much you can borrow to finance a home.
Like FHA loans, the VA doesn’t issue these loans directly. You’ll need to go through an approved VA loan lender.
Related: What Is a VA Loan?
5. USDA Loan
USDA loans are intended for low- to moderate-income buyers in rural areas designated as eligible by the USDA. There are no down payment or private mortgage insurance (PMI) requirements, but you have to pay a one-time upfront guarantee fee and a recurring annual fee to cover the cost of the loan.
Related: What Is a USDA Loan?
6. 203(k) Loan
A 203(k) loan is insured by the FHA and is intended for those buying a home in need of significant renovations and repairs. A 203(k) loan covers the purchase of the home and the improvements needed. You can’t buy a vacation home or investment property with this type of loan.
7. Non-QM Loan
A non-qualified mortgage, or non-QM loan, is a type of mortgage intended for self-employed buyers or those in unique financial situations. These loans have more flexible credit and income requirements than qualified mortgages.
Credit Score Needed To Get a Mortgage
You’ll typically need a minimum credit score of 620 to qualify for a mortgage. However, government-backed loans like FHA and VA loans tend to have lower minimum credit score requirements than conventional or jumbo loans. Moreover, lenders have the flexibility to establish their own minimum credit score requirements.
Will 2024 Be a Good Time for a Mortgage?
With the economy remaining resilient and inflation stickier than expected, the Federal Reserve has kept its monetary policy on hold. Despite this, the Fed indicated in May that there’s still potential for one to two rate cuts of 25 basis points (0.25%) later in the year.
Although mortgage rates don’t move in lockstep with the Fed’s target interest rate, the Fed’s actions indirectly influence what rates mortgage lenders are willing to offer their customers. Should interest rates fall by about 0.5 percentage points in 2024, per the Fed’s most recent projections, this could lead to big savings on a monthly mortgage payment.
For every $100,000 borrowed, a 0.5 percentage point interest rate decrease would reduce your monthly mortgage payment by $34. On a $350,000 mortgage, for example, your monthly payment will be $119 lower; over the course of a 30-year mortgage, this equates to a savings of nearly $43,000.
Pro Tip
There is no “best time” to purchase a home as real estate fluctuates. However, with mortgage rates elevated, home inventory remaining tight and demand still high, waiting until rates drop to purchase may leave you unable to afford a home. Once rates drop, more people will qualify for home loans, leading to an influx of buyers in the market, potentially opening way to more bidding wars and further driving up the values of homes.
How To Get a Mortgage & Steps to Take Before Applying
Before you even look at applications, you should start the mortgage process by following these steps:
- Check your credit. Make sure there are no errors in your credit report and that everything is up to date. It might be a good idea to spend some time improving your credit.
- Pay down debt. You may also want to take some time to pay down existing debts, since mortgage lenders take into consideration how much debt you already have relative to your income.
- Prepare the paperwork. To apply, you’ll likely need your W-2s, tax returns, recent pay stubs and statements from accounts showing your assets and liabilities. Most lenders will ask for additional information, as well.
- Find a lender. When you’re ready, shop around for the best mortgage lender. You can start with lists like the one above. Consider getting one or more mortgage preapprovals to help make you a stronger buyer when you’re ready to start house-hunting. In addition, ask for a Loan Estimate so that you can compare lenders and their total costs.
Related: How To Get A Mortgage
How To Compare Mortgage Rates
When you apply for a mortgage with multiple lenders, you’ll be able to compare rates and fees, which could save you thousands of dollars. Use these tips to make accurate comparisons:
- Apply on a single day. Since mortgage rates change daily, you won’t be able to tell which lender offers the best rate for your circ*mstances unless you submit all your applications to different lenders on the same day.
- Apply for the same type of loan. Interest rates can vary by loan type, so you’ll get the best information by applying for the same loan type and term with each lender. In other words, don’t apply for a 15-year FHA loan with one lender and a 30-year conventional loan with another.
- Compare points. One lender might charge you mortgage points for the same interest rate that another lender will give you without points. Check the first section of your loan estimate for this cost. Lenders are often willing to adjust the points and interest rate in your loan estimate within a range that still allows you to qualify.
- Consider the big picture. Loan fees can vary by hundreds or thousands of dollars among lenders. The longer you plan to keep your mortgage, the less important the fees are and the more important the interest rate is. If you expect to move or refinance in a few years, consider keeping your fees as low as possible even if it means a slightly higher interest rate.
How To Get Preapproved for a Mortgage
Applying for a mortgage preapproval isn’t hard. You can do it online, by phone or in person, depending on the lender. Follow these general steps:
- Provide personal information. Lenders need your name, address, phone number and Social Security number or individual taxpayer identification number (ITIN). Be prepared to show your driver’s license or other state-issued ID as well.
- Authorize the lender to pull your credit report. Lenders need your permission to do a hard credit check because it can have a small impact on your credit score.
- Provide proof of income and assets. Copies of documents such as recent paystubs, W-2s, tax returns and bank statements help demonstrate your financial stability and ability to repay the loan.
Once the lender has reviewed your information, they’ll decide whether to offer you a loan and how much you can borrow. The more information they look at up front, the more confidence you can have that there won’t be any unpleasant surprises later. With a mortgage preapproval letter, home sellers will know you’re a serious buyer.
How To Choose a Mortgage Lender
You can choose a mortgage from all kinds of financial institutions, including banks, credit unions and online mortgage lenders like Rocket Mortgage and loanDepot. But you can also work with a mortgage broker, who will do the work of shopping around for the best rate and terms for you.
It’s probably a good idea to look for a lender just before you start house-hunting, so you have a better sense of how much you can afford and whether you’ll be preapproved. Compare multiple lenders rather than going with the first one you find.
Ask an expert
What should borrowers consider when choosing a mortgage lender?
Fred Chilton
Advisory Board Member
Scott Bridges
Advisory Board Member
Chris Jennings
Mortgages & Loans Editor
Selecting the right mortgage lender is crucial to securing favorable terms that align with your financial needs. Here are some key things to consider:
- Customer service and reputation. While rates and fees are important, the quality of service is paramount. Consider how responsive and knowledgeable the loan officer is. Are they readily available to address your questions, or do responses lag? Effective communication and expert guidance are essential for a smooth transaction.
- Closing time. Efficiency in closing your loan can be a game-changer. Some lenders may require over 45 days to close, even in less busy periods. Aim for lenders who can complete the process within 21 to 30 days. This swiftness avoids potential hiccups and strengthens your position as a buyer when making an offer on a property.
- Rates and fees. While rates generally are competitive across lenders, the fees or “points” associated with these rates can vary significantly. It’s important to scrutinize these fees as they reflect the lender’s built-in margin and can impact the overall cost of your mortgage.
Advisory Board Member
Choosing a mortgage lender is a crucial decision when financing a new home or refinancing an existing loan. While finding the lowest interest rate is important, it’s not the only factor to consider. Here are some other essential elements to keep in mind:
- Exceptional customer service. Look for a lender with a reputation for responsiveness, clear communication and overall positive customer experiences. A dedicated loan officer who promptly answers your questions can make the home financing process much less stressful.
- Technology. Having strong technology that allows you to apply online, upload documents via a secure portal and check the status of your loan is a big plus.
- Breadth of products and guideline expertise. Mortgage guidelines can be complex, so choose a lender with deep knowledge of various loan programs and a full product menu (i.e. conventional, FHA, VA, USDA and home equity loans). They’ll help you find the perfect combination of program type, term length, down payment and interest rate to suit your unique needs.
- Reliable servicer. Mortgage loans often change hands between servicers after closing. Some lenders retain servicing rights, providing a seamless experience with a consistent point of contact. This familiarity can significantly reduce stress and ensure your escrow account and payments are handled responsibly.
Advisory Board Member
Don’t settle for one lender. There are a lot of different mortgage lenders out there, and many offer different products and services that might fit your needs better. Try to get at least three preapprovals from different lenders. This will give you an idea of the loan amounts and interest rates you qualify for, and it can potentially save you thousands of dollars. Wait until you’ve made an offer on a home and compared the Loan Estimates from each of your potential lenders before deciding on which one to work with.
Chris Jennings
Mortgages & Loans Editor
Recap: Best Mortgage Companies of March 2024
- Best Mortgage Lender for Alternative Credit Data Eligibility: Flagstar Bank
- Best Mortgage Lender for Nationwide Availability: Bank of America
- Best Mortgage Lender for Relationship Discounts: Chase
- Best Mortgage Lender for Fast Closing: Guaranteed Rate
- Best Mortgage Lender for Low Fees: PenFed Credit Union
- Best Mortgage Lender for Flexible Terms: Rocket Mortgage
- Best Mortgage Lender for Low Minimum Credit Scores: New American Funding
- Best Mortgage Lender for Medical Professionals: PNC Bank
- Best Mortgage Lender for Interest Rate Discounts: Mr. Cooper
- Best Mortgage Lender for Applying Online: Truist
- Best Mortgage Lender for Fast Preapproval: Ally
Methodology
Forbes Advisor graded the best mortgage lenders based on features that have a meaningful impact on the cost of a mortgage and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.
We award bonus points if a lender offers a specialty mortgage product, rate discount or considers alternative credit data when determining loan eligibility.
Our scoring method is broken down as follows:
- Interest rate. 20%
- Accessibility. 20%
- Customer service experience. 20%
- Loan options. 15%
- Time to close. 15%
- Loan minimums. 10%
- Bonus points. Up to 5% of the total score
We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.
Frequently Asked Questions (FAQs)
How much house can I afford?
The first step to finding out how much house you can afford is determining your budget. Consider how much you earn each month and how much you spend (on debt, savings, retirement, college funds, etc.).
Most experts recommend spending no more than 30% of your gross monthly income on your mortgage. That should also include taxes, insurance, and applicable HOA fees. The Forbes Advisor affordability calculator will help you take the guesswork out of how much you should spend on a house.
What is private mortgage insurance (PMI)?
Private mortgage insurance, also known as PMI, protects the lender in the event that you default on your mortgage. Typically, if you make a down payment of less than 20% of your home’s purchase price, you will be required to pay PMI. How much you’ll pay for this insurance will vary depending on factors that include the size of your down payment and your credit score.
Mortgage rates vs. APR: What’s the difference?
Mortgage interest rates are what it costs to service your loan. Interest is usually expressed annually for mortgages. The current 30-year, fixed-rate mortgage has an average interest rate of 6% or more.
In contrast, the annual percentage rate, or APR, includes not just the interest rate, but also other finance costs, including fees. This offers a more complete view of the total cost of your loan.
Related: APR Vs. Interest Rate: What’s The Difference?
What are the steps to getting preapproved for a mortgage?
Mortgage preapproval represents a lender’s offer to loan the buyer money based on certain financial circ*mstances and specific terms.
To start the process, begin by gathering documents your lender needs, including a copy of your Social Security card, recent W-2 forms, pay stubs, bank statements and tax returns. The mortgage lender you choose will then guide you through the entire preapproval process, as it can vary depending on the company you plan to borrow from.
Where is the best place to get a mortgage?
There are many options when it comes to finding the right mortgage—from banks and credit unions to online mortgage lenders. Generally, the best place to get a mortgage is from a lender with a mortgage rate and terms that are right for you. In addition to interest rates, make sure to compare fees, credit requirements and available repayment terms.
How do I get the best mortgage rate?
Getting the best mortgage rate always starts with getting your credit as strong as it can be. Start by checking your credit score and addressing any problems. Then work on making yourself look more attractive to mortgage lenders by paying off excessive debt, making sure you make all payments on time and so on.
You should also work on saving for a down payment—the more you save, the less you have to borrow. And avoid making any big life changes like switching jobs or taking on additional credit before your home purchase is complete.
Lastly, you’ll want to start watching mortgage rates on a regular basis and shopping around for lenders.
Related: How to Get the Best Mortgage Rate
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