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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Maskot/Getty Images March 01, 2022 Dori Zinn has been a personal finance journalist for more than a decade. Aside from her work for Bankrate, her bylines have appeared on CNET, Yahoo Finance, MSN Money, Wirecutter, Quartz, Inc. and more. She loves helping people learn about money, specializing in topics like investing, real estate, borrowing money and financial literacy. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. When you’re in the market for a home, you’re probably going to get to know a mortgage lender, and they’re going to get to know your finances inside and out. What is a mortgage lender and what role do they have in the homebuying process? Here’s what you need to know. What is a mortgage lender
A is a bank or company that provides home loans to borrowers. Some lenders also offer auto loans, personal loans or student loans. Some offer mortgages and other home-related loans. Sometimes, one lender can offer many different types of loans. A mortgage lender provides you with the funds to buy your home. Every month you make payments that go towards paying off your loan balance. You can shop for different mortgage lenders to compare loan terms and identify which ones offer the best rates, fees and repayment terms for your situation. Try getting from a few different lenders to see what offers fit best for you. How mortgage lenders work
When you need a mortgage, a mortgage lender will have you complete an so it can assess your ability to afford a home loan. Based on the information you provide, the lender will decide whether you’re qualified and, if so, set the maximum loan amount and interest rate. Later in the homebuying process, mortgage lenders also arrange an appraisal to determine the value of the home and coordinate the of the transaction. After closing, the lender either manages the repayment process (including helping you navigate relief options, if it comes to that) or outsources this work to a . Types of mortgage lenders
There are various , from local and regional lenders to big brand-name financial institutions. Lenders can be banks, credit unions or online only. The best lenders offer different incentives, such as lower APRs or zero fees. This means you might have a different set of criteria at one lender compared with others when shopping around for the right match. Banks – Banks often provide mortgage lending services in addition to banking and investment products. This includes big banks like , and . If you apply with your bank, you might be eligible for perks and discounts that aren’t available from other lenders. That said, borrowing from a bank can have downsides, including the potential for higher interest rates and longer closing times as a result of higher application volume. Credit unions – Credit unions tend to offer some of the lowest interest rates on the market. Many borrowers don’t meet the exacting requirements for credit union membership, however, and credit unions sometimes limit the number of loans available. Non-bank lenders – Any mortgage lender other than a bank or credit union is considered a non-bank lender. This includes online lenders like and . – Mortgage brokers are not lenders; they are independent, licensed professionals that connect lenders and borrowers. They typically charge about 1 percent to 2 percent of the loan amount for their services, a fee that the lender pays and then passes on to the borrower as part of the cost of the mortgage. Biggest mortgage lenders
The according to 2020 Home Mortgage Disclosure Act data are: Rocket Mortgage United Wholesale Mortgage Freedom Mortgage Wells Fargo LoanDepot Chase Home Lending Caliber Home Loans Fairway Independent Mortgage Corporation Bank of America U.S. Bank Is it better to get a mortgage from a bank mortgage company or an online lender
There’s no right answer to this since every lender offers different features and terms. Compare at least three lenders based on: Interest rates – The lower the interest rate, the less you have to pay on your principal, or original loan amount. While your rate is largely based on your credit score, credit history and (DTI), the rate you are offered will vary based on the lender you choose. Ease of communication – Can you make payments online, over the phone, through an app or another way? Does your potential lender contact you through emails or text? The more your lender opens up the communication channel, the easier it’ll be for you to stay on top of mortgage payments. Missing a mortgage payment not only causes your credit score to drop, but also could lead to default and foreclosure on your home. Fees – Sometimes lenders will rather than have the borrower pay them upfront through closing costs. Some fees can be negotiated, but many can’t. Down payment requirements – Your down payment amount might be based on a factors, like your creditworthiness and DTI. Compare lenders to see which ones have affordable and flexible down payment requirements. Not all banks, credit unions and online lenders have the same requirements or the same terms. Make sure to review multiple lenders before you choose one. How to find the best mortgage lenders
There are plenty of mortgage lenders to choose from. Compare banks, credit unions and online lenders to see which ones offer the lowest interest rate, fewest fees and most friendly down payment requirements. When , you should also consider factors unrelated to finances. For instance, do you want to be able to visit your lender to talk about your loan in-person? If so, a local bank or credit union might be better for you. If you prefer to use an online lender for easy application and approval, you might not need to look at traditional banks and credit unions. Since there are so many different options for mortgage lenders, you’ll want to tailor your search to your specific needs. Remember, not all lenders offer the same loan types, so factor that into your criteria as well. Finding the right mortgage lender is about finding the financial institution that best meets your needs. Learn more
SHARE: Dori Zinn has been a personal finance journalist for more than a decade. Aside from her work for Bankrate, her bylines have appeared on CNET, Yahoo Finance, MSN Money, Wirecutter, Quartz, Inc. and more. She loves helping people learn about money, specializing in topics like investing, real estate, borrowing money and financial literacy. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters.