Mortgages are not all made equal. Fees may be higher and closing times may be longer depending on the lender. While some lenders prioritise a quick preapproval procedure, others could provide veterans or current client’s discounts.
We examined hundreds of lenders to create this thorough list of the top lenders for borrowers since all of these aspects are crucial to take into account when selecting a lender.
We examined four key areas: the borrower’s ability to obtain a loan, loan options, affordability, and funding speed. By providing you with information on the lenders who stand out in these categories, we hope to make comparison shopping for you easier.
Methodology
We examined more than 50 mortgage lenders operating both online and offline across the United States. The lenders we examined include banks, credit unions, and internet lenders, some of the top mortgage lenders by volume. Review eligibility excludes lenders whose interest rates are not publicly available online.
The criteria used by Forbes Advisor to rank lenders include borrower eligibility requirements, the range of loan possibilities, and loan features that may have an influence on the home-buying process. These factors all have a significant bearing on the cost of the mortgage.
The best lenders scored the highest based on the weighting in the following categories:
- Interest rate: 20%
- Down payment requirements: 20%
- Credit score minimum requirements: 20%
- Alternative credit data considered: 10%
- Preapproval time: 10%
- Closing timelines: 10%
- Loan types: 10%
- Lender discounts offered: 5 bonus points
We believe that our emphasis on accessibility, affordability, and important elements that have an influence on the home-buying process (such preapproval time and closing time) is indicative of the top considerations of today’s consumers when comparing mortgage providers.
Frequently Asked Questions (FAQs)
What is private mortgage insurance (PMI)?
When you don’t pay your mortgage, the lender is covered by private mortgage insurance, or PMI. Generally, you will be forced to pay PMI if your down payment is less than 20% of the cost of your property. The cost of this insurance will vary based on a number of elements, including your credit score and the size of your down payment.
How can I obtain a mortgage preapproval?
A lender’s promise to grant money to the buyer based on particular conditions and financial conditions is represented by a mortgage preapproval. A copy of your Social Security card, a most recent W-2 form, pay stubs, bank statements, and tax returns are among the documents your lender will require. Next, start gathering these documents. Your chosen lender will next walk you through the preapproval procedure.
What kind of down payment do I need?
The more down payment you can afford to put down, the less financing you’ll need to buy a home. Making a down payment of at least 20% on a conventional mortgage will exempt you from paying private mortgage insurance. Depending on the type of mortgage you choose, different down payments are needed. For first-time buyers in 2019, the median down payment was 6%.
