Best Mortgage Lenders of October 2022 - NerdWallet Advertiser disclosure

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Best Mortgage Lenders of October 2022

Before buying a home or refinancing a mortgage, shop around to find some of the best mortgage lenders for your circumstances.NerdWallet Oct 3, 2022 Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. When you buy a home or refinance your mortgage, it's a big financial decision, so it makes sense to find the best mortgage lender you can. To do that, shop for offers from at least three lenders. Compare mortgage rates and other loan elements such as fees, terms, time to close, the availability of online application and loan tracking, and customer service offerings. Taking the time to make an informed decision can save you thousands of dollars over the life of your loan. To help you choose a mortgage lender, NerdWallet’s business and editorial teams have picked some of the best out there in a variety of categories to help you get the home loan with the best mortgage rate, term and fees. When you buy a home or refinance your mortgage, it's a big financial decision, so it makes sense to find the best mortgage lender you can. To do that, shop for offers from at least three lenders. Compare mortgage rates and other loan elements such as fees, terms, time to close, the availability of online application and loan tracking, and customer service offerings. Taking the time to make an informed decision can save you thousands of dollars over the life of your loan. To help you choose a mortgage lender, NerdWallet’s business and editorial teams have picked some of the best out there in a variety of categories to help you get the home loan with the best mortgage rate, term and fees.

Best Mortgage Lenders From Our Partners

LenderNerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Min. credit score Minimum credit score on top loans; other loan types or factors may selectively influence minimum credit score standardsMin. down paymentLearn more NBKC NMLS#409631Learn more at NBKC 5.0/5 Best for first-time home buyers620 CONVENTIONAL:620FHA:620JUMBO:N/AVA:5803%NBKC offers conventional loans for as little as 3% down.Learn more at NBKC Pennymac NMLS#35953Learn more at Pennymac 5.0/5 Best for overall FHA loan experience580 VA:620USDA:620JUMBO:N/AFHA:580CONVENTIONAL:6203.5%Pennymac offers several different home loan options for borrowers with less than a 20% down payment.Learn more at Pennymac NASB NMLS#400039Learn more at NASB 5.0/5 Best for digital convenience620 VA:580JUMBO:620FHA:580CONVENTIONAL:620CASHOUT:6203%NASB offers conventional loans for as little as 3% down.Learn more at NASB Rocket Mortgage LLC NMLS#3030Learn more at Rocket Mortgage, LLC 4.5/5 Best for refi loan options620 CASHOUT:620FHA:580CONVENTIONAL:620VA:620JUMBO:N/AN/ALearn more at Rocket Mortgage, LLC New American Funding NMLS#6606Learn more at New American Funding 4.5/5 Best for overall mortgage experience620 FHA:500JUMBO:N/AUSDA:640VA:500CONVENTIONAL:6203%New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.Learn more at New American Funding Veterans United NMLS#1907Learn more at Veterans United 4.0/5 Best for nonbank lending620 CONVENTIONAL:620FHA:620JUMBO:620USDA:620VA:6200%Veterans United offers VA loans for as little as 0% down.Learn more at Veterans United Ally Bank NMLS#181005Learn more at Ally Bank 4.0/5 Best for jumbo loans N/A10%Learn more at Ally BankLearn more at NBKC

NBKC NMLS#409631

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 CONVENTIONAL:620FHA:620JUMBO:N/AVA:580 Min. down payment3% NBKC offers conventional loans for as little as 3% down. View details Learn moreat NBKC View details Why we like it Good for: borrowers who want low rates and fees and an online experience with phone support. VA loans are an emphasis. Pros Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots. Offers low rates and fees compared with other lenders, according to the latest Federal data. Displays customized rates, with fee estimates, without requiring contact information. Cons HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.Read Full ReviewLearn more at Pennymac

Pennymac NMLS#35953

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score580 VA:620USDA:620JUMBO:N/AFHA:580CONVENTIONAL:620 Min. down payment3.5% Pennymac offers several different home loan options for borrowers with less than a 20% down payment. View details Learn moreat Pennymac View details Why we like it Good for: borrowers seeking a government-backed mortgage who want to rate-shop online. Pros Offers a wide variety of loan products, including government-backed and refinance options. Displays custom rate quotes based on home value, down payment or equity, ZIP code and credit score range. “Lock & Shop” lets you secure a rate for up to 60 days, even if you don’t have a purchase contract yet. Cons Origination fees are on the higher end, according to the latest federal data. Doesn't offer home equity products or renovation loans.Read Full ReviewLearn more at NASB

NASB NMLS#400039

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 VA:580JUMBO:620FHA:580CONVENTIONAL:620CASHOUT:620 Min. down payment3% NASB offers conventional loans for as little as 3% down. View details Learn moreat NASB View details Why we like it Good for: active military members and veterans and first-time home buyers. Pros Devotes much of its business to serving military families with VA loans. Offers a mortgage tailored to self-employed borrowers. Offers low rates and fees compared with other lenders, according to the latest federal data. Cons Doesn’t offer home improvement mortgages. Doesn't offer home equity loans or lines of credit.Read Full ReviewLearn more at Rocket Mortgage, LLC

Rocket Mortgage LLC NMLS#3030

4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 CASHOUT:620FHA:580CONVENTIONAL:620VA:620JUMBO:N/A National / regionalNational View details Learn moreat Rocket Mortgage, LLC View details Why we like it Good for: borrowers who appreciate convenience online and on the go for a fully digital home loan experience with consistently acclaimed customer service. Pros Caters to self-service users who want to apply for a home loan online and talk to a human only as necessary. Estimates the loan amount you’ll qualify for within minutes. Streamlines the online process with document and asset retrieval capabilities, including the ability to edit your preapproval letter. Cons Getting a customized interest rate requires a credit check, which can affect your credit score. Doesn't offer home equity loans or lines of credit. Lender fees are on the high side and the fees aren't offset by particularly low mortgage rates, according to the latest data.Read Full ReviewLearn more at New American Funding

New American Funding NMLS#6606

4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 FHA:500JUMBO:N/AUSDA:640VA:500CONVENTIONAL:620 Min. down payment3% New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois. View details Learn moreat New American Funding View details Why we like it Good for: First-time home buyers and other borrowers looking for a broad array of loan choices. Pros Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities. Its home equity line of credit can be used for an owner-occupied or second home. Offers a program to enable buyers to make cash offers. Cons Mortgage origination fees tend to be on the high end, according to the latest federal data.Read Full ReviewLearn more at Veterans United

Veterans United NMLS#1907

4.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 CONVENTIONAL:620FHA:620JUMBO:620USDA:620VA:620 Min. down payment0% Veterans United offers VA loans for as little as 0% down. View details Learn moreat Veterans United View details Why we like it Good for: veterans, active-duty service members and eligible reservists looking for VA loans. Pros Offers 24/7 customer service over the phone. Offers a free credit counseling service. Mortgage rates are on the low side, according to the latest federal data. Cons Doesn’t offer home equity loans or HELOCs. Veterans United has physical branch offices in only 17 states. Focus on VA loans, so may not be the strongest choice for those seeking other loan types.Read Full ReviewLearn more at Ally Bank

Ally Bank NMLS#181005

4.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.National / regionalNational Min. down payment10% View details Learn moreat Ally Bank View details Why we like it Good for: home buyers and mortgage refinancers, including jumbo borrowers, who want a digital experience with limited guidance. Pros Excels in online convenience, with document upload, loan tracking and e-signatures. Offers good rate transparency; rate shoppers can see customized interest rates. Cons Limited variety of loan products: FHA, VA and USDA loans are unavailable. Doesn't offer home equity loans and lines of credit.Read Full Review

NerdWallet' s editorial picks for the best mortgage lenders

New American Funding Best for nontraditional credit histories Better Mortgage Best for refinancing North American Savings Bank (NASB) Best for first-time home buyers and VA loans Ally Bank Best for digital convenience NBKC Best for digital convenience Wells Fargo Best for first-time home buyers and jumbo loans Flagstar Bank Best for refinancing Golden 1 Credit Union Best for rate transparency San Diego County Credit Union Best for rate transparency Alliant Credit Union Best for jumbo loans Network Capital Best for variety of loan types

Explore our lender roundups

Best Mortgage Refinance Lenders Best Lenders for FHA Loans Best VA Mortgage Lenders Best Mortgage Lenders for First-Time Home Buyers Best Mortgage Lenders for Jumbo Loans Best Conventional Mortgage Lenders Best Mortgage Lenders for Low or Bad Credit Score Borrowers Best Online Mortgage Lenders Best Credit Union Mortgage Lenders

How does a mortgage work

A mortgage is a loan to purchase a home. The loan is repaid with interest in monthly payments over a certain number of years, such as 15, 20 or 30. If the mortgage isn't repaid, the borrower may lose the home in a multistage process known as foreclosure. Banks, credit unions and other lenders offer mortgages. To apply, fill out an application and provide documentation about your finances. Lenders consider your income, debts and credit score to decide whether you qualify and the terms to offer. » MORE: What is a mortgage?

Types of mortgages

There are a variety of mortgages and home loan programs. Here are some of your choices.

Fixed vs adjustable rates

There are fixed-rate and adjustable-rate mortgages. The interest rate stays the same for the entire loan term of a fixed-rate mortgage. With an adjustable-rate mortgage, or ARM, the interest rate stays the same for a certain period, up to 10 years, and then adjusts at a specified interval, usually every six months.

15- 20- and 30-year mortgages

The most popular mortgage term is 30 years, but 15- and 20-year mortgages are also available. Mortgage payments are spread out monthly through the term. At the end, the loan is paid off and the borrower owns the property free and clear. » MORE: Pros and cons of a 30-year fixed-rate mortgage

Government-backed mortgages

These loans are backed by the federal government: FHA mortgages are backed by the Federal Housing Administration. They allow down payments as low as 3.5% and have more lenient credit score requirements than other loan programs. Borrowers must pay for mortgage insurance. USDA mortgages, backed by the U.S. Department of Agriculture and meant for rural home buyers, do not require a down payment, but borrowers must pay an upfront and annual guarantee fee, similar to mortgage insurance for FHA loans. VA loans, backed by the U.S. Department of Veterans Affairs, are for veterans and active military members. VA mortgages require no down payment, but borrowers pay a one-time VA funding fee, which can be rolled into the loan. » MORE: Best mortgage lenders for first-time home buyers

Conventional loans

Conventional loans are mortgages that are not backed by the federal government. Some conventional loans have down payment requirements as low as 3% — but typically, borrowers must pay for private mortgage insurance if they put down less than 20%. Conventional mortgages can be conforming or nonconforming. Conforming conventional mortgages fall within certain dollar amount limitations set every year by the Federal Housing Finance Agency. They also meet underwriting guidelines set by Fannie Mae and Freddie Mac, the government-sponsored entities that buy conforming loans. Nonconforming loans don’t abide by those limits and guidelines. For example, jumbo loans are conventional mortgages that exceed the conforming loan limits. They also typically have stricter criteria for approval than other mortgages. » MORE: Conforming loan vs. nonconforming loan

What s the credit score needed for a home loan

The credit score needed to buy a home depends on the type of loan and the lender. Most borrowers have scores in the high 600s to 700s. FHA loans generally have the most lenient credit score requirements.

How to compare mortgage rates

You can check current mortgage rates to see the average of what lenders are offering. Then get initial quotes online from some lenders based on your location, loan term, purchase price, down payment amount and other factors. To get a firm quote, you'll need to apply for preapproval. During the preapproval process, the lender will check your credit and verify your financial information, such as income, assets and debts. » MORE: How to get preapproved for a mortgage

How to shop for a mortgage lender

The time to shop for a mortgage lender is before you start house hunting. Getting preapproved for a mortgage will show real estate agents and sellers that you're a serious buyer. It's smart to get preapproved and then get Loan Estimates from more than one lender. The Loan Estimate provides details about the loan terms, monthly payment and estimated closing costs. With those pieces of information, you can compare offers and choose the best deal. More from NerdWallet: Mortgage Calculator Learn How Much House You Can Afford Compare Mortgage Rates Last updated on October 3, 2022

Methodology

The partner lenders featured at the top of this page were selected by NerdWallet's business team from our lists of Best Conventional Mortgage Lenders, Best Mortgage Lenders for First-Time Home Buyers, Best Mortgage Refinance Lenders, Best Lenders for FHA Loans, Best VA Mortgage Lenders, Best Mortgage Lenders for Low or Bad Credit Score Borrowers, Best Mortgage Lenders for Jumbo Loans, Best Credit Union Mortgage Lenders and Best Online Mortgage Lenders. 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. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team. To recap our selections...

NerdWallet' s Best Mortgage Lenders of October 2022

NBKC: Best for first-time home buyersPennymac: Best for overall FHA loan experienceNASB: Best for digital convenienceRocket Mortgage, LLC: Best for refi loan optionsNew American Funding: Best for overall mortgage experienceVeterans United: Best for nonbank lendingAlly Bank: Best for jumbo loans

Frequently asked questions

Which mortgage lender is the best? The answer depends on your needs. Lenders vary by the types of loans and services they offer as well as their credit score minimums and other requirements for borrowers. The best mortgage lender is the one that offers the products you need, has requirements you can meet and charges the lowest mortgage rates and fees.How do I find the lender with the lowest mortgage rate? Some lenders post mortgage rates on their websites and include tools to see how much your rate might be. But those are just estimates. You'll need to get preapproved for a mortgage to get a rate offer based on your credit score and other financial information.How much are closing costs? Closing costs are the various fees and expenses you pay to finalize the mortgage. Closing costs typically run between about 2% and 5% of the loan amount. That means on a $300,000 home loan, you could pay $6,000 to $15,000 in closing costs.What if I can't afford closing costs? Most state housing finance agencies offer first-time home buyer programs, which can include closing cost and down payment assistance. The assistance can come in the form of a grant, a forgivable loan or a deferred-payment loan. To qualify, you need to work with a lender approved by the state agency.Should I shop for a home or find a lender first? You should shop for a lender first and get preapproved for a mortgage before shopping for a house. A mortgage preapproval shows sellers and their real estate agents that you're a serious buyer. It also indicates how much you can borrow, which will help you determine how much home you can afford.

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