Best Mortgage Lenders of July 2024

Taking out a mortgage is a big financial decision and the process can be complex. That’s why choosing the best mortgage lender and a loan that fits your needs is important. A good lender offers low interest rates, excellent customer service, a wide range of loan options, and a speedy underwriting process. 

We saved you some time and compiled a list of the best mortgage lenders for your home-buying needs.

Best mortgage lenders of 2024

• NBKC Bank: Best mortgage lender for closing cost guarantees
• Mutual of Omaha: Best mortgage lender for customer reputation
• Rocket Mortgage: Best mortgage lender for borrowers with low or bad credit
• Allied Mortgage Group: Best mortgage lender for industry experience
• Better.com: Best mortgage lender for applying online 

Read more about our methodology below.

NBKC Bank: Best for closing cost guarantees

Mutual of Omaha: Best for customer reputation

Rocket Mortgage: Best for borrowers with low or bad credit

Allied Mortgage Group: Best for industry experience

Better.com Mortgage: Best for online application

Best mortgage lenders comparison

Best mortgage lenders methodology

To determine the best mortgage companies, Credible evaluated lenders based on several different categories: rates and fees, reputation, eligibility, efficiency, customer experience, and discounts and perks. We also looked at the types of loans offered by each lender for research purposes only, they did not factor into the overall score. We assigned a score out of five stars to each lender based on our findings. While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your home-buying journey.

Types of mortgage loans

There are five major types of mortgages borrowers can choose from, based on their needs:

• FHA loans are mortgages that are insured by the Federal Housing Administration. Because a government agency backs FHA loans, lenders can accept lower credit scores, smaller down payments, and low closing costs — while still offering competitive rates.
• VA loans are mortgages that are insured by the Department of Veterans Affairs and available to eligible veterans, service members, and surviving spouses. The government backing makes VA loans less risky for lenders, so they can set low interest rates, require no down payment, and offer special refinancing options.
• USDA loans are mortgages that are guaranteed by the United States Department of Agriculture. These also come with no down payment, but borrowers must pay mortgage insurance throughout the life of the loan. They’ll also need to meet income restrictions and buy a home in a designated rural area to qualify.
• Conventional mortgages are funded by banks and credit unions but aren't backed by a government agency. A conforming conventional loan meets special criteria designed by the Federal Housing Finance Agency (FHFA). These mortgages come with higher borrowing limits compared to FHA loans, and borrowers can save money by eventually getting rid of private mortgage insurance.
• Jumbo loans are a type of conventional loan that exceeds the dollar limit set by the FHFA. The limit is $766,550 throughout most of the U.S., but it stretches to $1,149,825 in some high-cost areas. Compared to the other loan programs, borrowers usually need better credit scores and larger down payments to qualify for these mortgages.

How to choose a mortgage lender

When choosing a mortgage lender, you want the right mix of low rates, great customer service, a speedy closing, and the best home loan for your situation. You should weigh all of these details when choosing the company that provides your mortgage. 

The best mortgage lenders offer the most popular home loan programs, but they also typically offer their signature mortgages, home equity products, and down payment assistance programs to help you afford the upfront costs of buying a home.

When comparing options, look for lenders that operate in your state, set flexible qualification criteria, and have a record of closing loans quickly. Our picks offer all of these features along with competitive interest rates, a range of home loans that cater to different needs, and best-in-class customer service.

Here are five factors to keep in mind:

• Availability: The lender you choose will need to operate in the state where you’re buying a home. You can start your search by making a list of local and national lenders.
• Loan products: Your lender will also need to offer the type of mortgage you want to take out.
• Eligibility requirements: The criteria to qualify for a home loan may vary from one lender to the next. When doing your research, ask multiple lenders about requirements surrounding your credit score, down payment, and DTI.
• Customer service: The lender you choose should also have a strong track record of providing good customer service. You can check out ratings from J.D. Power’s mortgage origination and loan servicing studies or look through the CFPB’s Complaint Database.
• Rates and fees: After submitting a mortgage application to at least three lenders, you should receive a loan estimate from each. This form makes it easy to do a side-by-side comparison of interest rates, APRs, closing costs, and total cash to close. These factors are likely to vary between lenders.

How to apply for a mortgage

Applying for a mortgage can take a few weeks or months, depending on how quickly you find a home and get your offer accepted. When you’re ready to apply for a mortgage, here are the important steps you’ll need to follow:

1. Shop around: Every lender offers its loan products and charges different interest rates and closing costs, so it’s a good idea to do some research before making your decision. Credible makes comparing multiple lenders quick and easy. In just three minutes, you can compare loan options from our partner lenders.
2. Get pre-approved: A pre-approval letter shows how much you can borrow and the rate you might receive, which can guide your home search and help you set a budget. During the process, you’ll need to provide details like your income, estimated monthly debts, credit score, and some info about what type of home you’re looking for.
3. Make an offer on a home: Once you find a home you like that’s in your price range, you can submit a purchase offer to the seller. Your real estate agent can help you determine a fair price and which contingencies you might want to include.
4. Apply for the mortgage: If the seller accepts your offer, then you’ll sign an agreement and move forward with the purchase. This is when you’ll officially apply for a mortgage with the lender you chose. The lender will need the purchase and sale agreement along with your W-2 forms, tax returns, recent pay stubs, and bank statements.
    

Best mortgage lenders FAQ

How much house can I afford?

To figure out how much to spend on a home, some people use the “28/36” rule. This method says you should use no more than 28% of your pre-tax income on your housing payment and 36% on all of your debts combined.

So if you earn $50,000 a year, for instance, then you’d spend $1,166 a month on all of your housing costs and another $334 a month on other debt payments, such as a car loan payment. If you have no debts, then you could spend $1,500 a month on your mortgage.

Use a mortgage calculator to estimate the home prices you can afford based on that monthly payment.

How much should I save for a down payment?

The median down payment is 14% among all homebuyers, according to the National Association of Realtors. However, the amount you need to save for a down payment will depend on the mortgage program you want to use and how much you can afford. Here are the minimum down payment amounts required by the major mortgage programs:

• Conventional loan: as low as 3%
• FHA loan: 3.5% or 10%, depending on your credit score
• USDA loan: 0%
• VA loan: 0%
• Jumbo loan: typically 10%
   

What type of mortgage loan is best?

There’s no one-size-fits-all mortgage that’s best for everyone. However, some general guidelines can help you choose a good home loan for your situation.

• Conventional loan: Best for borrowers with strong credit
• FHA loan: Best for borrowers with lower credit scores
• USDA loan: Best for borrowers with low to moderate income and plans of buying a home in a rural area
• VA loan: Best for service members and veterans
• Jumbo loan: Best for borrowers living in high-cost areas
   

What is the best mortgage lender right now?

Every person has different needs, so no one lender works for all borrowers. The best mortgage lenders are widely available and offer the type of home loan you want to use. You’ll also need to check whether each lender has flexible eligibility requirements, an excellent customer satisfaction record, and low borrowing costs, such as interest rates, closing costs, and lender fees.

Is it better to go through a lender or a bank?

A bank is one type of mortgage lender. Whether you go through a bank, credit union, online institution, or another type of lender depends on what you need. It’s important to consider which home loans the lender offers and whether you have a chance of qualifying. Also look at other factors, like the lender’s customer service record, how long it takes to close on a home loan, and the interest rates offered.