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Not all loans are created equal. Some lenders follow a quick pre-approval process, while others may offer interest rate discounts or reduce final costs.
We’ve compared dozens of lenders to combine this comprehensive list of the most productive loan lenders to make loan comparisons easier, whether you’re buying a home or wondering if 2024 will be the right time to refinance an existing loan.
Why you can accept Forbes Advisor’s truth as true: Our editors are committed to providing you with unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to compare monetary products and businesses, so that everyone is measured equally. You can read more about our editorial rules and our lending method for reviews below.
Current Chase consumers have to reduce processing fees and lower fees. For example, consumers who have combined assets in Chase deposit and investment accounts totaling between $150,000 and $499,999 will get a $500 reduction in loan processing fees. Borrowers with $500,000 or more will get a $1,500 reduction. Relief in processing fees. Chase also offers rate relief of up to 0. 25% if you have at least $1 million in deposits and investments there.
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Chase provides mortgages in 48 states and Washington, D. C. ; they are not available in Hawaii or Alaska. However, some loan products may not be available in all states. Chase also has a final guarantee that promises a closing in time for mortgage acquisition in 3 weeks (after you apply). all required documents), otherwise the lender will pay $5,000.
How to Apply
Borrowers can apply for a Chase loan online. Pre-approval can take up to two days.
Velocity
For traditional loans, Chase offers a final guarantee that it will close the loans within 21 calendar days of receiving a completed application package (except for cooperative properties).
Admissibility
Types of Loans
Chase offers traditional, constant-rate, and adjustable-rate mortgages, FHA loans, VA loans, and low down payment loans.
Flagstar offers two types of mortgages for new home structures: a structure loan and a single fence structure loan.
Their structured loan allows new home buyers to make interest bills only on the draft balance while the home is being built. Once the home is complete, the acquisition closes with one of Flagstar’s many loan options. This loan can be used to build number one. apartments up to $3 million.
With the single-fence structure loan, borrowers pay an interest-only structure, which reduces costs. It also locks in its interest rate structure and offers 3 types of financing for compliant mortgages, fixed-rate and variable-rate (ARM).
M. Cooper offers its consumers an enhanced virtual experience after the closing of their loan, adding through their visitor dashboard. Its Home Intelligence mobile app helps consumers manage not only a mortgage, but also their overall financial well-being. The app provides consumers with information on their home’s value, community trends, and the current state of their home’s equity.
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Mr. Cooper is one of the largest non-bank loan lenders in the country. It operates in all 50 states and provides conventional, jumbo, FHA, and VA loans. Cooper is a lender with no physical location.
How to Apply
The entire application procedure is done online. The telephone visitor is available Monday through Thursday from 7 a. m. to 7 p. m. M. A 8 p. m. CT, Fridays from 7 a. m. to 6 p. m. m. CT and Saturday from 8 a. m. to 2 p. m. CT. CT. La pre-approval takes less than five hours.
Velocity
Closing takes between 30 and forty-five days.
Admissibility
Types of Loans
Mr. Cooper will offer mortgages to buyers and refinancers. The lender will offer traditional and giant constant and variable rate mortgages, FHA loans, and VA loans. It offers USDA loans, home equity loans, or HELOCs.
PNC Bank provides a loan to healthcare professionals, such as interns, residents, fellows and physicians who have completed their residency within the last five years. With this loan, borrowers can:
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PNC Bank operates in all 50 states and offers a wide range of credit products, adding specialized loans for low- and moderate-income borrowers.
PNC offers a state-of-the-art online experience called Home Insight, which allows for in-depth investigation of the home buying process, allowing consumers to determine how much loan repayment they can afford and start buying a home with real-time loan quotes and products. It also allows consumers who have applied for a loan to go through the approval procedure and upload supporting documents.
How to Apply
Borrowers can do so online or as a user at a bank 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.
Telephone visits will be received Monday through Thursday from 8 a. m. to 8 p. m. M. A Nine P. M. ET, Fridays from 8 a. m. to 5 p. m. m. ET and Saturday from 9 a. m. to 2 p. m. Y. Pre-approval can take anywhere from 30 minutes to a day.
Velocity
The average closing time is forty-five days, which is in line with the industry average. In some cases, the closing can be as short as 30 days.
Admissibility
Types of Loans
PNC Bank offers a wide variety of mortgage loans, aggregating conventional, FHA, VA, USDA and jumbo loans, home equity loans and specialty loans for healthcare professionals.
Better is completely digital, so you can apply for and close a loan online from anywhere in the world. The online pre-approval time is fast: Applicants can expect to receive a quote and verified pre-approval in about 20 minutes. The lender has also evolved the generation to automatically seek discounts that consumers could possibly access without any extra effort or charge to borrowers.
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Better can be obtained in the United States, unless Hawaii, Nevada, and New Hampshire. It also doesn’t charge any commissions or fees to the lender, adding application, underwriting, or origination fees. According to a spokesperson for Better, their commission-free business style saves about 1% of the loan amount.
How to Apply
The application procedure is one hundred percent online. Since there are no in-person locations, consumers will have to rely on phone and email correspondence with credit professionals. Better offers 24/7 live services via phone and email. Pre-approval takes approximately 20 minutes.
Velocity
The average lender’s final time is 32 days, 10 days faster than average.
Admissibility
Types of Loans
You’d better offer traditional and giant constant- and variable-rate mortgages, as well as FHA loans. It offers VA or USDA loans.
The new U. S. funding U. S. Centers for Disease Control and Prevention (CDC) helps underserved minority communities. Its minimum credit score requirements are as low as 580 for some loans (and 620 for others), and it offers a wide diversity of loan options. With this point of flexibility, New American has established itself as a go-to lender for borrowers with not-so-great credit profiles, making homeownership more available to a wider diversity of buyers.
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California-based New American Funding has pledged to close the racial wealth hole with the goal of lending $20 billion in new loans to Black borrowers through 2028. The lender’s “I Can” loan program is a flexible loan option with terms ranging from 8 to 30 years. eligible borrowers. The lender operates nationally in Hawaii and New York.
How to Apply
Borrowers can do this online, and pre-approval can take a day.
Velocity
A mortgage can take up to 30 days.
Admissibility
Types of Loans
New American offers 15- and 30-year fixed-rate mortgages, traditional loans, FHA loans, and VA loans. In addition, it offers an exclusive “I Can” mortgage, low-interest loans, MRA, and opposite mortgages.
Ally’s loan pre-approval time is lightning fast (within 3 minutes), which is a merit in a competitive real estate market. Verified pre-approval may take longer. Borrowers can also lock in their rate within 10 minutes of pre-approval. -approved.
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Ally is available in all 50 states and offers both traditional and large loans. However, you may not find VA, FHA, or USDA loans here. Ally offers competitive rates and popular loan rates, ranging from 2% to 5%. Jumbo loan borrowers only want to make a 10% down payment, and personal loan insurance (PMI) is not required. First-time buyers can take advantage of Fannie Mae’s HomeReady loan, which requires a 3% down payment.
Ally consumers can track their progress online, e-sign documents, and upload files anytime, anywhere. If you have an Ally account, you’ll get $500 for final costs.
How to Apply
The application procedure is one hundred percent online. Since Ally doesn’t have a physical location, consumers will have to rely on phone correspondence for visitors. Array. La only option for visitors is by phone Monday through Friday, from nine to nine to Friday. 9 p. m. ET and 10 a. m. Saturdays. 6 p. m. h. ET. La pre-approval takes only 3 minutes.
Velocity
The final time for the lender is 36 days.
Admissibility
Types of Loans
Ally offers traditional and giant constant- and variable-rate mortgages, as well as HomeReady loans. It offers government-backed loans, such as FHA, VA, or USDA loans.
Bank of America is the second-largest bank in the United States. As such, it stands out for its online and face-to-face presence in more than 4,300 currency centers. Bank of America’s virtual lending store offers loan consumers online applications, electronic document signings, and online rate setting. Borrowers can also connect online with a loan specialist.
Your Affordable Loan Solution requires a low down payment of just 3% and no loan insurance, which can save budget-conscious borrowers a lot of dollars per month. For existing customers, several s are available, adding $600 in final costs.
The minimum guaranteed rate credit score for VA and FHA loans is 600. For traditional loans, it’s 620. These below-average requirements can affect new borrowers who may not have a well-established credit history.
VA loans also don’t require any down payment, while some traditional loans only require a 3% down payment. FHA borrowers will have to pay a minimum of 3. 5%. These no-down or low-down payment features can help cash-strapped people for the first time. Homebuyers, who can also combine those loans with local or state cash assistance systems that help pay for final costs or a down payment.
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The guaranteed rate is available online in the U. S. It is based in the U. S. and has more than three hundred locations across the country. Mortgage borrowers can count on average rates and competitive interest rates, just below the national average. Borrowers can also get a pre-approval letter within 24 hours. to 48 hours and be pre-qualified online in 15 minutes. And if you’re a VA borrower, not all loan fees will apply.
How to Apply
Borrowers can apply online or as a user on one of the sites with guaranteed rates. The customer must reach by phone Monday through Friday, 8:30 a. m. M. A 5:30 p. m. CT. Expect a turnaround time of one to two days for pre-approval letters.
Speed
Closing takes 10 days with same-day loan at a guaranteed rate.
Admissibility
Types of Loans
The Guaranteed Rate offers constant and variable rate mortgages, traditional and jumbo mortgages, FHA and VA loans, and interest-only mortgages. The guaranteed rate also provides home equity lines of credit (HELOCs).
Northpointe Bank offers a no-down loan, which means borrowers get one hundred percent financing. Borrowers will need to have a minimum credit score of 680 to qualify. In addition, the lender’s New Start loan provides financing to borrowers recovering from a “major credit event. “”Eligible borrowers can borrow up to $1 million, and low down payment features are available.
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Northpointe Bank is ahead of the curve in terms of speed (pre- and final approval times are faster than other lenders), as well as the variety of mortgage loans it offers.
Northpointe Bank operates in Alabama, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Tennessee, Utah, Virginia, Washington and Washington, D. C.
How to Apply
Borrowers can do this online; There are no physical branches. Pre-approval takes 24 to 48 hours.
Velocity
Closing times are about 30 days.
Admissibility
Types of Loans
In addition to the same usual loan offerings (conventional, FHA, VA, and USDA), Northpointe Bank also offers medical and business loans (no down payment, in some cases). It also offers structured loans and vacant land. Northpointe bank does not offer home equity loans or HELOCs.
PenFed Credit Union does not charge any lender fees to borrowers; Applicants are only guilty of third-party fees, such as appraisal, name search, credit report, and any other services necessary to process the mortgage. Mortgage origination fees range from 0. 5% to 1% of the loan amount. For example, a $400,000 mortgage loan can incur lender fees ranging from $2000 to $4000.
There’s also the Member Mortgage Benefit Program, a three-tier credit credit program up to $2500. The amount you save depends on the amount of your loan, so the larger the loan, the greater the savings.
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Founded in 1935, PenFed is one of the largest member-owned credit unions in the country. PenFed doesn’t need to be in the military to join. For others outside the military, the club requests a small donation ($10 to $15) to a specific charity. PenFed operates in all 50 states, Washington, D. C. , Puerto Rico and Guam. The lender has several branches in Maryland, Virginia, and Washington D. C.
How to Apply
Borrowers can apply online or at their branches in Maryland, Virginia, and Washington, D. C. Phone visits are available Monday through Friday from 8 a. m. to 8 p. m. M. A 8 p. m. ET, Saturdays from 8 a. m. to 5 p. m. M. Eastern Time. Pre-approval takes less than 3 days.
Velocity
The average closing time is 35 days, which is shorter than the average. In some cases, the final timeframe can be as short as 11 days.
Admissibility
Types of Loans
PenFed offers conventional, jumbo, and constant VA loans, as well as refinances and home equity loans.
Rocket Mortgage offers many loan options. One of their featured products is the YOURgage loan, a fixed-rate loan that allows you a traditional term of 8 to 29 years, allowing you to set a shorter (or longer) loan term based on your credit goals. However, this loan option requires a minimum FICO score of 620.
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Rocket Mortgage is one of the largest loan lenders in the United States and provides a completely online experience. With flexible visitor service hours and a robust network of some 43,000 loan officers from approximately 10,000 loan brokers nationwide, borrowers can service visitors 24 hours a day. . Rocket Mortgage is an online lender with 4 branches in Charlotte, Cleveland, Detroit, and Phoenix.
How to Apply
Borrowers can apply online. The phone is available Monday through Friday, from five to five hours. five p. m. PT. Chat is available from 5 a. m. to 5 p. m. Pacific Time, seven days a week. The lender can pre-approve loans within 8 minutes.
Velocity
As of February 2024, the average time to close a refinance with Rocket Mortgage is 21 days and the average time to close an acquisition loan is 36 days.
Admissibility
Types of Loans
Rocket Mortgage’s product line includes constant and variable rate mortgages, traditional, jumbo, FHA, and VA loans. It also offers its own traditional loan, YOURgage, a custom-designed, constant-rate, term-based mortgage. Finally, your FHA Streamlined Refinance lends existing FHA borrowers to refinance at a lower rate with fewer documents and no appraisal required. The lender offers home equity loans, but does not offer USDA or HELOC loans.
Truist guides borrowers through their online application with step-by-step videos, how-to guides, and a seamless online app that makes the procedure easy to navigate and understand. Their online page provides loan applicants with an easy-to-use application experience.
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Truist is born from the merger of SunTrust and BB
How to Apply
Borrowers can do this online or as a user at one of the more than 2500 branches. Applicants can get pre-approved for a loan the same day.
Velocity
A mortgage can take up to 30 days.
Admissibility
Types of Loans
Truist offers constant and variable rate mortgages, VA loans, FHA loans, traditional and jumbo mortgages, as well as medical loans and structured to permanent loans.
LoanDepot consumers who use the lender’s Mello Smartloan online generation will have their last time for 17 days due to relief on documents and the ability to log in and determine assets, income and debts online.
In addition, Mello Smartloan can digitally perform name search and authorization, which is one of the most time-consuming steps in the loan underwriting process. Generation also determines whether some borrowers can waive the appraisal requirement, which can save time and a few hundred dollars. dollars on your mortgage charge.
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LoanDepot is one of the largest non-bank loan lenders in the United States, with more than 150 branches nationwide and a strong online presence. Their credit products include traditional loans, government-backed loans, refinances, and home equity loans.
How to Register
Borrowers can apply for a loan online. Once their application is submitted, a loan officer will call them to take the next steps, which include submitting source of income documents and a private ID.
Customer service hours are flexible weekdays from 8 a. m. to 10 p. m. ET and Saturdays from 11 a. m. to 6 p. m. h. ET. Pre-approval can take about 15 minutes for borrowers who are not required to provide further information.
Velocity
Borrowers using their Mello Smartloan generation can shorten the final procedure by up to 17 days.
Admissibility
Types of Loans
LoanDepot offers fixed-rate mortgages, adjustable-rate mortgages, FHA loans, jumbo loans, VA loans, and FHA 203(k) loans. LoanDepot offers USDA loans.
The loan rates are as follows:
A loan is a loan secured through a property. Most Americans don’t have enough cash to pay for a home, so they apply for a loan with a term ranging from a few years to 30 years or more. In return, a lender has a lien on the property, which means that if you fail to make payments, the lender can foreclose on the property and repossess the property.
Related: What is a mortgage?
A loan works just like any other loan. Your lender provides you with cash to cover the full cost of buying a home, and you pay that cash back over a set period of time (usually 15 to 30 years). During this period, pay the principal (the original loan amount) plus interest (the fees charged through your lender for the loan).
Mortgages are secured loans, and your home serves as collateral. This means that your lender is entitled to the assets (through a deed called foreclosure) if you default on your payments.
There are six common types of mortgages used to buy a home: conventional, jumbo, Federal Housing Administration (FHA), Department of Veterans Affairs (VA), United States Department of Agriculture (USDA), and 203(k).
Conventional loans are the most common type of mortgage loan. They are insured through any government agency; Instead, they are funded through traditional banks, loan finance companies, and credit unions.
Conventional mortgages are more difficult to obtain than government mortgage loans, such as an FHA loan, but they generally charge less.
A giant loan is a loan that exceeds the loan limits set through the Federal Housing Finance Agency (FHFA). They are used to acquire expensive homes and are reserved for borrowers with strong finances and a high credit score. You will also need to apply periodically. Make a bigger down payment with a jumbo loan.
The FHFA limit for 2023 is $726,200, which means you can use a large loan to buy a larger home that is in many parts of the country. In high-cost areas, the FHFA limit is $1,089,300.
FHA loans are insured through the Federal Housing Administration and are issued through licensed lenders. They are for low-income homebuyers or those who don’t qualify for a traditional loan.
The main merit of FHA loans is that they have less stringent qualification requirements than traditional 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 budget to make at least a 10% contribution, you would possibly qualify with a credit score as low as 500. However, depending on how much you pay, you will have to pay loan insurance premiums for 11 years or the entire life of the loan.
If you are an active duty military member or veteran of the U. S. Armed Forces, you need to be a member of the military. If you are a U. S. citizen (or the spouse of one of them), you would possibly be eligible for a VA-backed mortgage.
As long as you still have full rights, you won’t have to make a down payment on a VA loan. Those who still qualify will have to respect VA housing barriers.
Like FHA loans, the VA offers those loans directly. You will need to go through a VA licensed loan lender.
Related: What is a VA Loan?
USDA loans are for low- to moderate-income buyers in rural areas designated as eligible through the USDA. There are no down payment or personal loan insurance (PMI) requirements, however, you will have to pay a one-time upfront payment to guarantee payment and a recurring annual payment to cover the loan charge.
Related: What is a USDA Loan?
A 203(k) loan is insured through the FHA and is for those who buy a home that needs renovations and primary repairs. A 203(k) loan covers the purchase of the home and improvements. You can’t buy a vacation home or investment assets with this type of loan.
Interest rates may also fall by about 0. 5 percent in 2024, according to the Federal Reserve’s most recent projections from September. This means that if you can also get a constant 30-year loan rate of 7. 3% in 2023, you would possibly be on track to get a 6. 8% loan rate in 2024.
For every $100,000 you borrow, this 0. 5 percentage point interest rate relief would reduce your monthly loan payment to $34. For example, on a $350,000 loan, your monthly payment will be $119 less.
Before you even review the applications, start the loan procedure by following those steps:
Related: How to Get a Mortgage
When you apply for a loan from multiple lenders, you’ll be able to compare rates and fees, which can save you thousands of dollars. Use these tips to make accurate comparisons:
Applying for pre-approval for a loan is difficult. You can do this online, over the phone, or in person, depending on the lender. Follow these general steps:
Once the lender reviews your details, they will determine if they will offer you a loan and how much you can borrow. The more data you review in advance, the more confident you are that there may be no unpleasant surprises down the road. Loan pre-approval letter, home sellers will know that you are a serious buyer.
You can get a loan from all kinds of monetary institutions, including banks, credit unions, and online loan lenders like Quicken and LoanDepot, but you can also hire a loan broker, who will take care of finding the most productive rate and terms for you. .
It’s probably a good idea to look for a lender right before you start looking for a place to live, so you have a better idea of how much you can afford and whether you’ll be pre-approved. Compare multiple lenders instead of opting for the first one you find.
We looked at more than 50 lenders doing business online and in person in the U. S. U. S. The lenders we reviewed make up some of the largest loan lenders by volume, including banks, credit unions, and online lenders. Lenders who do business publicly posting their interest rates online are eligible for review.
Forbes Advisor evaluates real estate lenders based on criteria that have a significant effect on the cost of the mortgage, adding the borrower’s eligibility requirements, the variety of loan options, and the loan features that may affect the home. -Purchase process.
The top lenders earned weighted scores in the following categories:
The focus on affordability, accessibility, and key features that affect the home buying process (such as pre-approval time and final time) is what we take into account to reflect consumers’ most sensible priorities when comparing lenders.
To learn more about our scoring and scoring method, as well as our editorial process, please consult our consultant on How the Forbes Advisor Rates Mortgage Lenders.
The first step in determining how much you can get out of your home is to figure out your budget. Consider how much you earn each month and how much you spend (on debt, savings, retirement, school funds, etc. ).
Most experts propose spending no more than 30% of your gross monthly income source on your mortgage. This also comes with applicable taxes, insurance, and HOA fees. Forbes Advisor’s affordability calculator will help you avoid guessing how much you spend on a home.
Private loan insurance, also known as PMI, protects the lender in the event that your loan defaults. Generally, if you make a down payment of less than 20% of the purchase price of your home, you will need to pay PMI. The amount you pay for this insurance will vary depending on points such as the amount of the down payment and the credit score.
Mortgage interest rates are what it costs to pay off your loan. Interest is paid annually on the loans. The existing 30-year fixed-rate loan has an average interest rate of 6% or more.
In contrast, the annual percentage rate, or APR, includes only the interest rate, but also other monetary charges, adding fees. This provides a more complete view of your overall loan charge.
Related: APR vs. Interest Rates: What’s the Difference?
Pre-approval of a loan represents the lender’s offer to lend money to the customer on certain financial cases and express conditions.
To begin the process, start by gathering the documents your lender needs, adding a copy of your Social Security card, recent W-2 forms, pay stubs, bank statements, and tax returns. Then, the loan lender you will be advising through the pre-approval process, as this can vary depending on the company you plan to borrow from.
There are many options for finding the right loan, from banks and credit unions to online loan lenders. Generally, the most productive position to get a loan is from a lender that offers a loan rate and terms that suit you. In addition to interest rates, be sure to compare available rates, credit requirements, and payment terms.
To get the most productive loan rate, you want your credit to be as strong as possible. Start by checking your credit score and resolving any issues. Then, try to get more excited about lenders by paying off your excess debt, making sure you pay all your bills on time, etc.
Also think about saving for a down payment: the more you save, the less you need to borrow. And avoid making major adjustments to your life, such as changing jobs or getting extra credit before your home purchase is complete.
Finally, you’ll need to start tracking loan rates and looking for lenders.
Related: How to Get the Best Mortgage Rate