10 Best Mortgage Lenders of 2023 | The Mortgage Reports (2024)

What’s the best mortgage lender?

The best mortgage lenders should have excellent customer service, a broad range of mortgage products, and competitive rates and fees. Each of our 10 best lenders excels in all these areas.

But remember, our top pick won’t necessarily be yours. You need to get quotes from multiple lenders to be sure you’re getting a great deal.

Editor’s note: The Mortgage Reports may be compensated by some of these lenders if you choose to work with them. However, that does not affect our rankings. See our full editorial disclosures here and our review methodology here.

In this article (Skip to…)

• Best mortgage lenders
• Choosing a lender
• Mortgage rates
• Loan options
• FAQ
• Methodology

The 10 best mortgage lenders of 2022

Source: 2022 Home Mortgage Disclosure Act data via CFPB. Historical average rates are for comparison purposes only; your own interest rate will be different.

*These lenders specialize in select loan types and may not help every borrower.

What is a mortgage?

A mortgage is a particular kind of loan product that various financial institutions, such as banks and credit unions, offer to help people purchase homes. Borrowers use the loan to finance a home purchase and then repay the money with interest over a specified time period.

The purchased property serves as collateral, which means that if the borrower fails to meet the repayment terms, the lender may repossess the home.

Mortgages are essential to homeownership, especially in locations where the cost of purchasing a home outright is prohibitively expensive for most people, such as New York or California.

How does a mortgage work?

A mortgage has three main components: the principal, the interest, and the loan term. The principal is the amount borrowed or the home’s purchase price. The interest rate is the cost of borrowing money, and the loan term is the amount of time it takes to repay the principal and interest.

A mortgage’s terms and conditions can vary depending on the type of loan, down payment requirements, and the borrower’s creditworthiness. These factors are considered during the underwriting process, in which lenders assess the risk of lending to a specific borrower.

A mortgage application entails a detailed process that includes online applications, rate quotes, underwriting, and meeting minimum credit score requirements. Lender fees are also part of the process and can have a significant impact on the loan’s overall affordability. The mortgage process typically includes an appraisal to ensure that the home’s value matches the loan amount.

Types of mortgage loans

Prospective homeowners have a variety of mortgage options available to them, and the best choice will depend on a number of variables, such as the borrower’s financial situation, their long-term homeownership goals, and the market circ*mstances at the time of purchase.

Conventional loans

Conventional mortgages are arguably the most common type of home loan. They typically have stricter minimum credit score and down payment requirements, but may offer more competitive interest rates and lower costs.

Conventional mortgages are a popular option for borrowers with good to excellent credit and a sizable down payment.

Government-backed loans

Government-backed loans are a type of mortgage that is guaranteed by the federal government. These loans typically have lower minimum down payment requirements and are more accessible to borrowers with lower credit scores.

• FHA loans: The Federal Housing Administration guarantees this loan option. They accept 3.5% down payments and have less stringent credit score requirements than other loan programs. However, borrowers are required to pay for mortgage insurance premiums (MIP).
• USDA loans: The U.S. Department of Agriculture backs these loans for rural home buyers. They don’t require a down payment, but the borrower must pay an upfront and annual guarantee fee, which is similar to mortgage insurance for FHA loans.
• VA loans: The United States Department of Veterans Affairs guarantees this type of loan for veterans and active military members. There is no down payment required for VA mortgages, but borrowers must pay a one-time VA funding fee, which can be rolled into the loan.

Refinance loans

Another mortgage option that homeowners may consider is refinancing. This involves replacing an existing mortgage with a new one, usually in order to obtain a lower interest rate or to cash out home equity. The difference between the market value of a home and the outstanding mortgage balance is referred to as home equity.

Homeowners can borrow against their equity for a variety of purposes, including home improvements, education costs, and debt consolidation.

Second mortgages

Second mortgages are an option for homeowners who want to use the equity in their homes without refinancing or selling. These can take the form of home equity loans and home equity lines of credit (HELOCs), allowing homeowners to turn their home equity into a savings account. Here’s a brief overview of each:

• Home Equity Loans: The lender provides a lump sum based on the home’s equity. Borrowers repay the loan over a fixed term at a fixed interest rate. Using a mortgage calculator can help homeowners estimate potential borrowing amounts and monthly payments. These loans are ideal for significant one-time expenses.
• Home Equity Lines of Credit (HELOCs): The lender offers a credit line based on the home’s equity, and homeowners can borrow as needed, similar to a credit card. Interest is only paid on the amount used. HELOCs are practical for ongoing expenses or as a financial safety net.

The specifics of these loan products can vary based on location and the lender’s criteria. Finally, it’s worth noting that these options should be pursued with a solid repayment plan in place.

How to compare mortgage lenders

You may notice our picks for the best lenders for home loans are all large companies. These major lenders are available to most people and big enough to be rated by official agencies. This lets us review mortgage lenders objectively.

But there are plenty of local lenders, credit unions, and mortgage brokers worth looking into as well. So how do you know which mortgage lender is the best one for you?

Find a lender that works for your situation

Different lenders tend to specialize in different types of borrowers.

One might be the best at helping “top-tier” home buyers (those with stellar credit scores, large down payments, etc.), while another might offer much better rates and programs for those with weaker applications.

That means there’s likely a mortgage company out there with a great deal waiting for you.

The catch? You won’t know which one it is until you’ve compared loan offers side by side.

Compare Loan Estimates to find the best deal

Plan to dedicate a few hours to filling out mortgage applications before you’ll know which company is really best for you. We recommend checking with three or four lenders at a minimum.

By law, each lender is required to provide a standard Loan Estimate after you apply. This document will list all the information you need to compare mortgage loans side by side, including:

• Mortgage interest rates
• Annual percentage rate (APR)
• Estimated closing costs
• Monthly mortgage payments
• Loan terms and loan type

You can use these estimates to find a lender that matches your priorities: which may be the lowest interest rate or the lowest upfront fees.

Finally, don’t forget to look for lenders that offer services that you find valuable.

For instance, you might not care as much about rates and fees if you can find a lender offering down payment assistance. This can be a game-changer for first-time home buyers.

How to get the best mortgage rates

Your mortgage rate depends on how “good” your application looks to lenders. To get the lowest rate, you need a high credit score, a solid down payment, little debt, and other features that make you look like a responsible borrower.

With that in mind, there are steps you can take leading up to your mortgage application to ensure you get the best rate possible:

1. Shop around with 3–4 lenders minimum
2. Compare loan offers carefully
3. Check your credit report and dispute errors in your credit history to improve your score
4. Pay down debts to keep your debt-to-income ratio (DTI) low
5. Keep credit card balances below 30% of your limit
6. Watch out for closing costs, especially the loan origination fee, which varies a lot by lender
7. Consider buying discount points to lower your rate if you have extra cash upfront

Some lenders sneakily reduce the rates they offer in their quotes by assuming you’re going to buy discount points. Others don’t.

There’s nothing wrong with discount points if you want them. But you need to compare rates on an equal footing. So, make sure your loan estimates factor in the same number of points.

Choosing the right loan type

Choosing the right type of home loan is just as important as choosing the right lender. Your loan type will help determine your eligibility as well as your interest rate.

Here’s a brief overview of the five main types of mortgage loans:

Finding the right loan type is personal. You have to consider your own goals; do you want the lowest down payment possible? The lowest monthly payment possible? Do you have a lower credit score and need extra flexibility?

For more information about each loan type and help choosing, see our complete guide to types of home loans.

How to get a Mortgage

Securing a mortgage is a significant step in the home-buying process. Here’s what you can expect.

• Assess your financial situation: Before you even start looking at houses, you should have a clear understanding of your budget, credit score, and what you can afford.
• Save for a down payment: Most mortgage options require a down payment. The amount varies, but saving enough funds can increase your chances of securing a mortgage and lower your monthly payments.
• Get preapproved for a mortgage: Preapproval involves a lender checking your financial situation to determine how much they would be willing to lend you. It gives you a better idea of your budget and makes you a more attractive buyer to sellers.
• Find a house and make an offer: Once preapproved, you can start house hunting. When you find a home you like, make an offer through your real estate agent.
• Home inspection and appraisal: If your offer is accepted, a home inspection and appraisal will be done to ensure the home is worth the price and doesn’t have any significant issues.
• Finalize the mortgage: After a successful home inspection and appraisal, you will work with your lender to finalize the mortgage terms. This includes the interest rate, payment schedule, and other loan specifics.
• Close on the home: Once the mortgage is finalized, you will close on the home, sign all necessary documents, and get the keys to your new home!

Remember, the mortgage process can vary slightly depending on the type of loan, your financial situation, and the housing market, but these steps provide a general guide.

Best mortgage lenders FAQ

Best mortgage lenders methodology

To find the best mortgage lenders, we started with a list of the 50 biggest lenders in 2022 (the most recent data available at the time of writing per the Consumer Financial Protection Bureau’s Home Mortgage Disclosure Act (HMDA) Data). We compared mortgage companies based on third-party data, including average 30-year fixed interest rates, median total loan costs, and median origination costs, as well as online customer ratings and a review of each lender’s mortgage offerings by our editorial team. Average interest rates and fees were sourced from loan-level data lenders are required to file each year under the HMDA Act. The editorial team of The Mortgage Reports conducts all mortgage lender reviews independently. You can read our full editorial disclosures here.

Recap: The 10 best mortgage lenders

To recap, here are our picks for the ten best mortgage lenders in 2022:

1. Citibank
2. PNC Bank
3. Home Point Financial
4. American Financing Corporation
5. loanDepot
6. Citizens Bank
7. Nationstar Mortgage
8. Rocket Mortgage
9. Caliber Home Loans
10. Guaranteed Rate

Remember, mortgage rates change daily. So once you find a lender you like, keep an eye out for low rates and be prepared to lock in. You can get a head start by requesting personalized rate estimates below.

¹The Mortgage Reports Score is based on an independent review by our editorial board of each mortgage lender's loan offerings, requirements, customer service reviews, and online accessibility

²Minimum credit score reflects the minimum score required by each lender for an FHA loan at the time of writing

³Average loan costs sourced from loan-level data lenders are required to file each year under the Home Mortgage Disclosure Act. Data shown here represents the most recent year available at the time of writing