8 Best Mortgage Lenders of 2024

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Money's best mortgage lenders main Takeaways:

• Buying a home is likely the most significant investment you will make. With mortgage rates hovering around 7%, finding the right lender is more important than ever.

• The best way to find the most competitive rates and terms that fit your financial needs is to compare products from at least three different lenders.

• Look beyond the offered interest rates when shopping around for the right loan. Consider each lender’s fees and whether they have fast pre-approvals and easy application processes — and check their customer satisfaction rankings.

• Our top picks for best mortgage lenders include Rocket Mortgage (best customer service), LendingTree (best marketplace) and Veterans United (best online lender for members of the military).

Our Top Picks for Best Mortgage Lenders of 2024

The companies below are listed in alphabetical order.

• Bank of America – Best National Bank
• Better Mortgage – Best for Fast Closing Time
• Guild Mortgage – Best for First-Time Homebuyers
• LendingTree – Best Marketplace
• Navy Federal – Best In-person Lender for Military Members
• Newrez – Best for Investment Property Loans
• Rocket Mortgage – Best Customer Service
• Veterans United – Best Online Lender for Military Members

Best Mortgage Lender Reviews

Why we chose this company: Bank of America (NMLS: #399802) offers a wide selection of mortgage options, competitive closing costs and the chance for discounts on fees and rates if you’re already a bank customer.

Customers with an existing Bank of America account who are members of the bank’s Preferred Rewards program can qualify for a $200 to $600 reduction in closing cost fees or interest rate discounts on home equity lines of credit, depending on their reward tier (among other benefits).

You can apply for a mortgage online or at one of the bank’s 4,300 branches and 2,900 lending centers if you prefer in-person service. You can also sign, submit and track documents online through Bank of America’s Home Loan Navigator.

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Why we chose this company: Better Mortgage’s (NMLS: #330511) streamlined application and document submission process can significantly reduce the time it takes to close a home loan.

With Better’s One-Day Mortgage, customers can submit their financial documents, lock in a mortgage rate, and receive a loan commitment letter within 24 hours if they qualify. According to the lender’s website, borrowers can also close on their mortgage up to 17 days faster than the industry average (for comparison, the industry standard is around 45 days).

The online lender also has a Better Price Guarantee. The lender will match a competitor’s offer or give you a $100 credit. Another plus: the lender doesn’t charge commissions on the loans it originates.

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Why we chose this company: Guild Mortgage (NMLS: #3274) is a great option for first-time homebuyers because of its low credit score requirements, multiple loan options and ability to connect borrowers with more than 500 down payment assistance programs throughout the country.

With Guild’s 1% Down Payment Advantage Program, you only have to put 1% of the purchase price down, and the lender will pay another 2%, up to a maximum of $5,000. For homes purchased before December 21, 2024, Guild’s Payment Advantage program also offers a 1% temporary rate buydown for the first year of the loan.

Another advantage is the lender’s large variety of loan products, which include rate buydowns for up to three years, FHA, VA and USDA loans, and energy-efficient loans, among other options. Guild can originate loans in all but one state: New York and New Jersey. The lender can fully close mortgages online via its digital platform, MyMortgage, which can speed up the closing process.

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Why we chose this company: LendingTree (NMLS #1136) allows you to easily compare rate quotes from multiple lenders, making it our choice for the best mortgage marketplace.

LendingTree has a network of over 300 lenders located throughout the country. You can discuss the options with a LendingTree loan officer to find the option that best fits your needs. Once you complete a simple, three-step online application, you will be contacted by up to five lenders offering quote estimates.

During this comparison process, LendingTree runs a soft credit check, which won’t affect your score. If you choose a lender LendingTree recommends, you’ll complete the application process with that company directly (which will require a hard credit check).

LendingTree also offers plenty of educational resources and support services, including information on current mortgage rates, loan calculators and a national loan officer directory. The company’s free Spring account helps users keep tabs on their credit score and offers tips on how to improve it, among other features.

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Why we chose this company: Navy Federal Credit Union (NMLS: #399807) is our choice for the best in-person lender for military members because of its loan variety, discounts and the large number of branches throughout the country.

One of Navy Federal’s standout loan options is the Homebuyers Choice loan. It allows you to finance 100% of the home’s purchase price, get a fixed-rate loan with consistent monthly payments and the seller can contribute up to 4% towards closing costs. You may also qualify for the credit union’s No-Refi Rate Lock: if interest rates drop after six months of your purchase date, you can pay a $250 fee and lower your rate without having to go through the whole refinancing process.

Other NFCU advantages include a rate match guarantee—the credit union will match a competitor's lower rate or discount $1,000 from your closing costs if it can’t match their rate—and Freedom Lock, which allows you to lock up to two rates with a maximum cumulative rate reduction of 0.50%.

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Why we chose this company: Newrez is one of the few lenders on our list that offers financing for buyers interested in purchasing investment properties, including those that aren’t owner-occupied.

Newrez offers niche and specialty loans for multifamily dwellings, low-to-high-rise buildings, and long and short-term rental properties. While its investment property loans make it stand out, the lender also offers a variety of loan options, including conventional and government-backed options with low down payment requirements.

For buyers interested in acquiring a single-family residence, getting a Newrez mortgage offers several benefits. With Purchase Perks, you can reduce your closing costs by $1,000. The lender also offers an on-time closing guarantee: Get up to $5,000 back if you miss the closing date because of lender delays.

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Why we chose this company: Rocket Mortgage (NMLS: #3030), formerly Quicken Loans, is known for ranking at the top of multiple customer satisfaction rankings for several consecutive years. In 2023, it was top of the list in J.D. Powers 2023 U.S. Mortgage Servicer Satisfaction Study.

In an effort to increase affordability, Rocket recently introduced its Welcome Home RateBreak, a temporary rate buydown program aimed at buyers who earn 80% or less of an area’s median income and are purchasing a single-family home. The lender will pay to reduce the interest rate on a mortgage by 2% in the first year and 1% in the second year. Rocket estimates that more than 90 million prospective homebuyers, particularly first-time buyers, could benefit from the program.

The buydown program joins another recent product offered by the lender. Rocket Logic, an artificial intelligence-driven platform designed to speed up the loan application process, allows the lender to scan uploaded documents and confirm the borrower’s information quickly. The lender says Rocket Logic can reduce closing times by as much as 25%.

Borrowers who earn less than 80% of the area’s median income can also qualify for the One+ program. Qualifying homebuyers can purchase a home with just 1% down, with Rocket paying an additional 2%.

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Why we chose this company: Veterans United’s (NMLS: #1907) easy-to-use online platform and robust credit counseling programs make it a good choice for active-duty military members who may not be located near a physical branch.

Veterans United offers conventional and FHA loans, but it specializes in loans backed by the U.S. Department of Veterans Affairs, making it a great option for service members, veterans, reservists and their families. The lender doesn’t offer home equity loans or lines of credit but does offer VA cash out refinance loans.

Borrowers in need of credit counseling can take advantage of Veterans United’s free Lighthouse program, which matches customers with specialists who work one-on-one with customers to design credit improvement plans.

Outside of its online services, Veterans United has physical branches in 18 states: Alabama, Alaska, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky, Nebraska, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and Washington.

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Other mortgage lenders we considered

We considered the following lenders for our list, but they ultimately didn’t make the cut:

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Fairway Independent (NMLS: #2289) has more than 650 branches across 48 states and the District of Columbia, along with a comprehensive mobile app. Their FairwayNOW app helps streamline the document submission process while also providing calculators and direct communication with your loan officer.

Fairway offers flexible mortgage terms of 10, 15, 20, 25 or 30 years. Its most notable product is physician loans, designed to help medical professionals with student loan debt.

While Fairway Independent receives overall favorable reviews, it doesn’t publish any of its rates, credit score requirements and minimum down payments online. Instead, you must reach out to an agent to access this information.

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Though better known as a mortgage servicer than an originator, Flagstar Bank (NMLS: #417490) offers a full suite of loans, including home equity products and several specialty loans.

An example is the Professional Loan, aimed at recent graduates with high earning potential. In some cases, Flagstar may even exclude some student loan debt from its DTI calculation.

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Guaranteed Rate (NMLS: #2611) officially rebranded as Rate in July. The online mortgage lender has a fully digital process that you can track via an interactive checklist. There are also more than 500 physical branches across all states. It’s the only lender we surveyed offering a 100% money-back guarantee.

Rate offers comprehensive educational resources, including a Know Your Neighborhood feature that allows borrowers to view market and population trends by zip code, school data, and taxes. With Rate's Same Day Mortgage, you can get your loan approved in as little as one day.

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PrimeLending (NMLS: #13649) has a broad selection of loan products, including some unique options, such as construction loans, energy-efficient mortgages and FHA 203(k) renovation loans.

With Prime’s 1Day AdvantEDGE, you can get a loan approval within 24 hours of completing the online application process and get a $250 lender credit.

While PrimeLending offers a vast selection, the lender could be more transparent about its requirements for borrowers. Further, though the company touts its online availability, potential homebuyers must first speak with a loan officer before completing an application.

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Mortgages Guide

Purchasing a new home and taking on a mortgage loan can be intimidating, especially for first-time buyers hoping to achieve their dream of homeownership. The process requires a firm knowledge of your personal finances and a long-term financial commitment. This basic information will help you start your search confidently.

If you need more guidance during the home-buying process, a professional mortgage banker or mortgage broker can help find the right loan program to fit your needs.

What is a Mortgage?

A mortgage is a loan used to buy a house, condo, townhome, apartment or any other type of real estate. When you take out a mortgage, you are using the property you’re buying as collateral to secure the loan, which means that if you stop making the mortgage payments, the bank can repossess the home.

How Do Mortgages Work?

Mortgages are secured loans that use the value of the home you’re buying as collateral.

Loans are secured by making a down payment and meeting the lender’s minimum credit score and income requirements. Borrowers typically need 20% of the purchase price to avoid private mortgage insurance. However, lenders may offer different down payment options, and getting a loan with as little as 3% down is often possible.

Researching different loan options and comparing lender requirements and the costs associated with taking out a loan is important. Closing costs, for example, include application, title search and origination fees, as well as other costs that must be paid upfront or rolled into the loan. Depending on the lender, you will be required to pay between 2% and 6% of the loan amount in closing costs.

Mortgages are repaid over time with interest, and loan terms can run from eight to 30 years. Most Americans need a mortgage to afford a home. The drawback of a mortgage is if you’re unable to make your monthly payments, the lender can seize the property.

If you’re already a homeowner and thinking about refinancing your mortgage, check our mortgage refinance calculator and list of the best mortgage refinance companies to get started.

Types of mortgage loans

Mortgage companies offer products with varying term lengths, interest rates and payment structures to address different needs. Compare offerings from multiple financial institutions to find the lender that best meets yours.

Conventional loans

Private lenders offer the most common type of mortgage loan, conventional loans and are not part of any government insurance program. Conventional mortgages can be conforming or non-conforming.

• Conforming loans meet the loan limits set by the Federal Housing Finance Agency and the standards required to be purchased by Fannie Mae and Freddie Mac, which are government-sponsored mortgage investors.

• For 2024, the conforming loan limit is $766,550 in most places. In some expensive areas, the limit goes up to $1,149,825.

• Non-conforming loans do not meet these standards and, therefore, stay on the private lender’s books.

Jumbo loans

Jumbo loans are a type of conventional, non-conforming loan for home purchases priced above the conforming loan limit of $1,149,825.

FHA loans

A Federal Housing Administration is a government-backed mortgage product popular with first-time buyers.

• The government offers lender insurance on this type of loan, so FHA mortgage rates tend to be lower than conventional loans.

• This type of loan also typically requires a lower upfront down payment, as low as 3.5% of the purchase price.

VA loans

Another government-backed loan, VA loans, are guaranteed by the US Veterans Affairs Department. VA loans are available to service members, veterans and eligible surviving spouses.

• VA loans often have lower interest rates and no down payment or private mortgage insurance requirements. However, they require a VA funding fee. For more information about VA loans, check out our guide to the best VA loans.

USDA loans

The U.S. Department of Agriculture guarantees USDA loans, which are an option for borrowers who want to purchase or build homes in rural and suburban areas. Applicants must meet specific income requirements to qualify but typically don’t need to make a down payment.

Reverse mortgage

A reverse mortgage allows homeowners age 62 or older to convert their home equity into cash without selling their property, as long as they meet eligibility requirements.

• As long as the homeowners live in the house, they don’t have to repay the loan — however, there are caveats, such as having homeowners insurance and maintaining the property in good condition.

• The homeowner can receive the loan through different payment options, such as a monthly disbursement or a lump sum payment.

• Instead of a reverse mortgage, homeowners under the age of 62 can also look into home equity loans, which are similar in concept, though with different repayment rules.

• The best reverse mortgage lenders will refer you to an independent financial counselor before applying to explain how this type of loan works and ensure you make the right choice.

Home equity loans

A home equity loan is a second mortgage a borrower takes out on top of their existing loan. The borrower’s property guarantees the loan, and homeowners can tap into the equity their house has gained over time. Applicants must own at least 20% of their home’s value to qualify. Home equity loans are paid out in a lump sum and can be used for any purpose. Like traditional mortgages, these loans are repaid in monthly installments.

Home equity line of credit (HELOC)

A home equity line of credit (HELOC) is another type of second mortgage that allows you to access the equity built up in your property and convert it into readily available cash. Unlike a home equity loan, a HELOC functions like a credit card, where the lender pre-approves a specific borrowing limit you can draw upon as needed.

You can use funds from the line of credit during a draw period. During this time, you pay interest only on the amount you draw. You can also repay the amount you take out and have access to the maximum line of credit again. Once the draw period ends, you can no longer withdraw cash and must start repaying the principal and interest on any outstanding balance.

Fixed-rate vs. adjustable-rate mortgages

Once you start shopping for a mortgage, you’ll find two types of mortgage interest rates: fixed rates and adjustable rates, also known as variable rates.

A fixed-rate means that the interest the lender charges on the loan will never change as long as you meet the loan's terms. In other words, if you make your monthly payments, don’t refinance the mortgage or alter the loan agreement in any way, your interest rate will always stay the same.

On the other hand, an adjustable rate means that the interest will change according to market conditions, meaning it could increase or decrease several times during the loan's term. When talking about adjustable rate mortgages (ARMs), most lenders will offer what are called hybrid ARMs: they will have a fixed-rate number of years where the rate won’t change, then become variable and start adjusting.

Each type of interest rate has its pros and cons. You should carefully consider each before deciding which best suits your needs.

Fixed-rate mortgages

Adjustable-rate mortgages (ARM)

Another important piece of information you need to know is the difference between your loan’s interest rate and the annual percentage rate (APR).

The interest rate is the rate your lender charges on the amount you borrow. The APR is the total percentage you’ll pay the lender and includes your interest rate plus any applicable loan fees, including loan origination and underwriting costs.

Compare current mortgage rates and the APR offered by the lender to ensure you’re getting the best rate. Borrowers who qualify for a lower rate will save money on their loan over time.

How to Get a Mortgage Loan

Determining your budget is the first step toward getting a home mortgage loan. Check our mortgage calculator and home affordability calculator to see how much you’ll be able to afford in monthly mortgage payments and get an estimate of your ideal purchase price.

Figuring out your down payment is a big part of determining how much house you can afford. As a general rule of thumb, a 20% down payment is recommended because you’ll avoid paying for private mortgage insurance (PMI) — a policy that will protect the lender in case you default on the loan. Most lenders, however, will have lower down payment requirements.

Before applying for a mortgage, check your credit score and debt-to-income ratio (DTI). Lenders prefer borrowers with a DTI lower than 36%, and many will only consider borrowers with a ratio higher than 43%.

It is also important to compare mortgage lenders to find the one with terms that best fit your financial situation. Once you’ve decided on a lender, gather all the necessary paperwork to help streamline the application process.

Documents needed when submitting a mortgage application include:

1. Your two most recent pay stubs
2. Your most recent tax return
3. W-2 and/or 1099 (lenders may ask for two years, depending on your employment history)
4. A state-issued photo ID, such as your passport or driver’s license
5. Statements of all your assets (retirement accounts, investment accounts, checking and savings accounts, etc.)
6. Bankruptcy discharge documents (if applicable)
7. A recent credit report (typically obtained by the lender)
8. Records of any outstanding debts, such as credit cards and student loans
9. In some cases, lenders may require additional documentation, like a history of alimony payments and gift letters, so make sure to ask before applying

Lenders will perform hard credit inquiries when you apply, making sure there are no red flags in your credit history that may impact your chances of approval. Your score will not be affected if you apply with multiple lenders within 45 days. Credit reporting agencies recognize this as shopping around for the best mortgage rate.

Another good idea is getting a mortgage pre-approval before deciding on a property. Getting a pre-approval letter will save you time and make the mortgage process more manageable.

It is important to note that student loans count against your debt-to-income ratio, which could make applying for a mortgage difficult for many individuals. However, getting a mortgage when you have student loans is not uncommon, so thoroughly explore all of your bank’s options to secure the best rates.

Once you’ve submitted your application, the lender will provide a loan estimate within three business days. The loan estimate is a document that outlines the preliminary terms of the loan you have requested.

How much money do I need to buy a house?

Buying a home is a serious milestone and a heft investment. when you apply for a mortgage, keep the following expenses in mind:

• Down payment: Depending on the type of mortgage you choose, your down payment can be anywhere from 0% to 20% of the home's purchase price. The average price of sold homes in the U.S. was $501,100 at the end of 2024, so you'd need as much as $100,000 for a down payment. Low down payment programs are available but tend to have higher rates.

• Closing costs: Closing costs are required to complete the loan and close the mortgage. These costs include appraisal fees, title insurance, taxes and tax service provider fees. In general, closing costs are 2% to 6% of the loan amount.

• • Homeowners insurance: If you have a mortgage, you're required to carry homeowners insurance. To protect your property, it may be a good idea to maintain a policy after the mortgage is paid off. According to NAR, the average cost of a homeowners insurance policy was $2,377 per year, but premiums are expected to increase.
  • Property taxes: These taxes vary by state, but the effective tax rate ranges from 0.32% to 2.23% of the property value. For example, if you have a $350,000 home and an effective tax rate of 0.92%, you would have to pay $3,220 in property taxes. These taxes are due on an annual basis.

• Homeowners insurance: If you have a mortgage, you're required to carry homeowners insurance. To protect your property, it may be a good idea to maintain a policy after the mortgage is paid off. According to NAR, the average cost of a homeowners insurance policy was $2,377 per year, but premiums are expected to increase.
• Property taxes: These taxes vary by state, but the effective tax rate ranges from 0.32% to 2.23% of the property value. For example, if you have a $350,000 home and an effective tax rate of 0.92%, you would have to pay $3,220 in property taxes. These taxes are due on an annual basis.

• Maintenance: Home maintenance can be expensive. Appliances, fixtures and the building structure may require repairs, servicing or replacement. As a general rule, experts recommend setting aside 1% to 4% of your home's value for maintenance per year. For a $500,000 home, for example, you'd need to save $5,000 to $20,000 per year for maintenance.

How We Chose the Best Mortgage Lenders

Our ranking methodology was determined based on the following categories:

• Types of loans offered: We favored companies that offer a variety of loan options, such as fixed- and adjustable-rate mortgages, different term lengths, and both private loans and loans backed by government agencies.

• Customer experience: We favored companies that consider alternative credit data, provide a streamlined application process, offer at least two forms of customer service, and have a variety of resources and educational tools on their websites.

• Reputation and transparency: We evaluated consumer complaints with the Consumer Financial Protection Bureau and the number of regulatory actions filed with the Nationwide Multistate Licensing System

Over the course of our research, we consulted the following expert sources:

• The Mortgage Bankers Association
• Veterans Administration’s 2023 list of lenders by loan volume
• J.D. Power’s 2023 U.S. Mortgage Origination Satisfaction Study
• Residential Originations Databook
• Consumer Financial Protection Bureau (CFPB)
• Nationwide Mortgage Licensing System (NMLS)

Summary of Money’s Best Mortgage Lenders of 2024