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Not all mortgages are created equal. Depending on the lender, fees can be higher and closing times longer. Some lenders focus on a speedy preapproval process, while others may offer discounts for the military or existing customers.
Because all of these factors are essential to consider when choosing a lender, we compared dozens of lenders to come up with this comprehensive list of the best lenders for borrowers.
We looked at four main categories: the borrower’s ability to get a loan, affordability, loan options and speed to funding. Our goal is to make comparison shopping easier for you by informing you of the lenders that stand out in these areas.
620
Lower than the national average
3 weeks
Chase is one of the top mortgage lenders because of its competitive interest rates, loan programs for borrowers with smaller down payments and relatively speedy closing times.
The DreaMaker mortgage, a low down payment option with flexible credit and income requirements, is geared toward buyers on a budget who might have lower credit scores. Eligible DreaMaker borrowers may also get $500 after completing a homebuying education course.
Chase also offers relationship discounts for eligible existing Chase customers in the form of reduced processing fees and lower rates. For example, customers who have combined assets in Chase deposit and investment accounts totaling between $150,000 and $499,999 will get $500 off the mortgage processing fee. Borrowers with $500,000 or more will get a $1,500 reduction from the processing fees. Chase also offers a rate discount of up to 0.25% if you have at least $1 million in deposits and investments there.
Available in Most States
Chase mortgages are offered in 48 states and Washington, D.C.; they are not available in Hawaii or Alaska. However, some loan products might not be available in all states.
How to Apply
Borrowers can apply online.
Speed
Chase’s preapproval process can take up to two days.
Credit Requirements
Chase requires a minimum credit score of 620.
Loan Types Offered
Chase offers fixed- and adjustable-rate conventional and jumbo mortgages, Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans and low down payment loans
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ - DreaMaker |
620
Lower than the national average
35-day average
Flagstar Bank offers all the major mortgage options (conventional, jumbo, construction and government-backed loans) both online and at its branch locations in Indiana, Michigan, Ohio and Wisconsin.
The lender has low minimum credit score requirements for some of its loans, which is helpful for first-time home mortgage borrowersor people who are repairing their credit.
The lender also offers several discount programs, including discounts for borrowers whose employers have a relationship with Flagstar, incentives for returning customers and discounts for first responders, active military and veterans.
Available in All 50 States
Online application process available in all states; in-person branches also are available in four Midwestern states.
How to Apply
Flagstar Bank offers several ways for customers to get a mortgage. They can apply online or visit a lender in person. They can also visit a branch location in Indiana, Michigan, Ohio and Wisconsin.
Customer support hours, including for email, phone and online chat, are Monday through Friday, 7:30 a.m. to 9 p.m. ET and Saturday 8:30 a.m. to 6 p.m ET.
Speed
Preapproval time is less than three days. Their average closing time is 35 days, which is shorter than the industry average. In some cases, the closing can occur in as few as 11 days.
Credit Requirements
Flagstar Bank has mortgage products with minimum credit score requirements of 620.
The lender considers alternative credit data, such as rent and utility payments, when reviewing mortgage applications. Alternative credit data takes into account credit information that’s not usually captured in the FICO score, such as utility bills, and rent and cell phone payments.
Loan Types Offered
Flagstar Bank offers fixed and adjustable-rate (ARM) conventional and jumbo mortgages, FHA, VA and USDA loans. It also offers construction and renovation loans as well as specialty loans, which include loans for multiple properties and loans in high-cost areas. Home equity loans are available in limited areas. You can enter your ZIP code on the Flagstar website to find out if you qualify for a home equity loan.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | Limited | |
Specialty | ✓- Multiple Property Loans, High-Balance Loans and Jumbo Adjustable Rate |
620
Lower than the national average
30-45 days
Mr. Cooper is among the largest nonbank mortgage lenders in the country. Headquartered in Dallas, Mr. Cooper operates in all 50 states, offering the standard mortgage lineup: conventional, jumbo, FHA and VA loans.
Mr. Cooper offers customers an enhanced digital experience once the loan is secured, namely through its customer dashboard. Its Home Intelligence mobile app helps customers manage not just a mortgage but their broader financial well-being. The app gives customers insight into their home value, neighborhood trends and the current state of their home’s equity.
Mr. Cooper’s Digital Loan Tracker is another technology designed to make the home loan experience more streamlined, informative and easier to understand. The tracker provides customers with real-time dashboards to see the latest on their application status, as well as a unified system to submit documents and add transparency to the process.
Available in All 50 States
Prospective borrowers from all 50 states can apply online—Mr. Cooper offers no brick-and-mortar locations.
How to Apply
The entire application process takes place online. Customer support by phone is available Monday through Thursday from 7 a.m. to 8 p.m. CT, Friday from 7 a.m. to 6 p.m. CT and Saturday from 8 a.m. to 2 p.m. CT.
Speed
Preapproval takes less than 5 hours, while closing time is between 30 and 45 days.
Credit Requirements
Mr. Cooper requires a minimum credit score of 620. For FHA borrowers, the requirement is 580.
Loan Types Offered
Mr. Cooper offers both mortgages for buyers and refinancers. The lender offers fixed and adjustable-rate conventional and jumbo mortgages, FHA loans and VA loans. It doesn’t offer USDA loans, home equity loans or HELOCs.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ |
620
Lower than the national average
30-45 days
PNC Bank operates in all 50 states and provides a wide range of mortgage products, including specialty loans for low- and moderate-income borrowers.
PNC offers an innovative online experience called Home Insight, which provides a deep dive into the homebuying process, enabling customers to determine the mortgage payment they can afford and start shopping for homes with real-time rate quotes and loan products. It also allows customers who have applied for a loan to follow along with the approval process and upload supporting documents. In addition, the customer can invite real estate agents into the process to monitor progress.
Home Insight combines a home affordability analysis, a monthly payment estimator that accounts for insurance and taxes and the ability to search for available home listings. It also connects unique budgets, real-time rates and loan products with a real estate listings search to help prospective home buyers better understand how much house they can afford.
PNC also offers a full digital pre-approval application, where borrowers may apply online and receive approval in a matter of minutes.
Available in All 50 States
PNC has branches for borrowers more comfortable with a brick-and-mortar experience in the following states: Alabama, Delaware, District of Columbia, 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.
How to Apply
Borrowers can apply online or in person at a bank location. Customer support by phone is available Monday through Thursday from 8 a.m. to 9 p.m. ET, Friday from 8 a.m. to 5 p.m. ET and Saturday from 9 a.m. to 2 p.m. ET.
Speed
Preapproval can take as little as 30 minutes, or up to one day. The average closing time is 45 days, which is about the industry average. In some cases, the closing can be as short as 30 days.
Credit Requirements
Borrowers must have a minimum credit score of 620. For jumbo loans, the minimum credit score is 700.
Loan Types Offered
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ - Community (No PMI) Loan, Medical Professional Loan |
620
Lower than the national average
32 days
Better.com delivers convenience in many ways. It’s completely digital, so you can apply and close from anywhere in the world. Preapproval time is quite fast—applicants can expect to get a rate quote and verified preapproval in about 20 minutes. The lender also has developed technology to automatically look for discounts customers might be eligible for, without any extra effort or cost on the borrower’s part.
It also doesn’t charge commission or lender fees—including application, underwriting and origination fees. According to a Better.com spokesperson, the commission-free business model saves approximately 1% of the loan amount. This equates to a savings of $19,000, on average, over the life of a loan.
Available in Most States
Better.com is available everywhere in the U.S. except Hawaii, Nevada and New Hampshire.
How to Apply
The application process is 100% online. In fact, in 2016 Better.com funded its first loan without a single phone call. For people who like automation, this is where Better.com shines.
Because there are no in-person locations, customers will have to rely on email and phone correspondence with loan professionals. Better offers 24/7 live support by phone and email.
Speed
Better.com mortgage verified preapproval time takes less than 20 minutes for borrowers who are not required to supply additional information. If you must provide proof of self-employment income, monetary gifts or additional assets, the preapproval time might be longer.
The lender’s average closing time is 32 days, which is 10 days faster than the industry average.
Credit Requirements
Better.com requires a minimum credit score of 620.
Loan Types Offered
Bettter.com offers fixed- and adjustable-rate conventional and jumbo mortgages and FHA loans. It doesn’t offer VA or USDA loans.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ |
620
Lower than the national average
36-day average
For basic loan options (you won’t find VA, FHA or USDA loans here), Ally offers competitive rates and standard lender fees, which range from 2% to 5% of the loan. Jumbo loanborrowers need to put just 10% down and private mortgage insurance (PMI)is not required. First-time buyers can take advantage of Fannie Mae’s HomeReady loan, which requires 3% down.
Qualified borrowers will get a lightning-fast preapproval letter—within three minutes—which is an advantage in a competitive market. Borrowers also can lock their rate within 10 minutes of being preapproved.
Ally customers can track their progress online, e-sign documents and upload files at any time and from anywhere. As long as you have an internet connection, you can do most of the work remotely.
If you have an Ally account, you’ll get $500 toward closing costs.
Available in Most States
Ally is available everywhere in the U.S. except Hawaii, Maryland, Massachusetts, Minnesota, Nevada, New Hampshire, New York, Vermont, Virginia and Wyoming.
How to Apply
The application process is 100% online. Borrowers will meet in-person to sign closing documents.
Because Ally has no brick-and-mortar locations, customers will have to rely on phone correspondence for customer support. The only customer support option is by phone Monday through Friday, 9 a.m. to 9 p.m. ET and Saturday 10 a.m. to 6 p.m. ET.
Speed
Ally’s mortgage preapprovaltime is quick, taking about three minutes, though verified preapproval can take longer. Documents required include tax returns, credit report, identification (driver’s license or passport), monthly bank statements and monetary gift letter (if applicable).
For borrowers who are asked to supply additional information, such as proof of income for self-employed borrowers, monetary gifts or additional assets, the preapproval time might be longer. The lender’s average closing time is 36 days.
Credit Requirements
Ally requires a minimum credit score of 620.
The lender considers alternative credit data, such as rent and utility payments, when reviewing mortgage applications. Alternative credit data takes into account payments you make that are not traditionally included in credit reports. This can help borrowers who might not have a long credit history or had a prior bankruptcy show a good track record with on-time payments in areas that are not usually counted in traditional credit data.
Loan Types Offered
Ally offers fixed- and adjustable-rate conventional and jumbo mortgages and HomeReady Loans. It doesn’t offer FHA, VA or USDA loans.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ - HomeReady Loans |
620
Lower than the national average
30 to 45 days
Bank of America stands out for its low down payment Affordable Loan Solution mortgage, which requires 3% down and no mortgage insurance.
For borrowers who want the flexibility of applying online or in person, Bank of America offers both as there are 4,300 financial centers in the U.S., in addition to its online mortgage options, which include the Bank of America Digital Mortgage Experience. This provides customers with online applications, electronic signatures for documents and online rate locks. Borrowers also can connect with a lending specialist online.
Bank of America offers lower-than-average mortgage rates and the convenience of applying in-person or online. Their Affordable Loan Solution mortgage requires a low down payment of just 3% and no mortgage insurance, which can save budget-minded borrowers hundreds of dollars per month.
For existing customers, there are several discounts available, including a $600 closing-costs discount.
Available in Most States
Mortgages are not available in North and South Dakota, Nebraska, Wyoming, Idaho, West Virginia, Alabama and Wisconsin.
How to Apply
Borrowers can apply online or in person.
Customer support via phone is available Monday through Friday, 8 a.m. to 10 p.m. ET and Saturday 8 a.m. to 6:30 p.m. ET.
Speed
You can win mortgage preapproval in as little as 20 minutes, with a letter to follow, according to a Bank of America spokesperson.
The lender’s average closing time is between 30 to 45 days, which is about the industry average.
Credit Requirements
Bank of America requires a minimum credit score of 620.
The lender considers alternative credit data, such as rent and utility payments, when reviewing mortgage applications. Alternative credit data takes into account payments you make that are not traditionally included in credit reports. This can help borrowers who might not have a long credit history or had a prior bankruptcy show a good track record with on-time payments in areas that are not usually counted in traditional credit data.
Loan Types Offered
Bank of America offers fixed- and adjustable-rate conventional and jumbo mortgages, FHA loans and the Affordable Solution Mortgage, which requires just 3% down and no private mortgage insurance. The lender doesn’t offer USDA loans.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓- Affordable Solution Mortgage |
620
Lower than the national average
21 to 30 days
Mortgage borrowers can count on average fees and competitive interest rates, tracking just below the national average. Borrowers can also get a preapproval letter within 24 to 48 hours and they can get prequalified online within 15 minutes.
If you’re a VA borrower (or refinancing a VA mortgage), Guaranteed Rate waives all loan fees.
Available in All 50 States
Guaranteed Rate is available online everywhere in the U.S. and has more than 300 branches nationwide.
How to Apply
Guaranteed Rate offers both branch locations and online access to borrowers who want to apply for a mortgage. Its paperless application process allows borrowers to send paperwork electronically as well as apply and keep track of the application process online.
Borrowers can apply online or in person at one of its locations. Customer support is available by phone Monday through Friday, 8:30 a.m. to 5:30 p.m. CT.
Speed
Preapproval times are not as fast as other lenders, with a one- to two-day turnaround on preapproval letters.
Credit Requirements
Guaranteed Rate requires a minimum credit score of 620.
Loan Types Offered
Guaranteed Rate offers both mortgages for buyers and refinancers. Its product line includes fixed- and adjustable-rate mortgages, conventional and jumbo mortgages, FHA, USDA and VA loans, as well as interest-only mortgages.
Guaranteed Rate doesn’t offer home equity loans or home equity lines of credit.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓- Interest-only mortgages |
620
Lower than the national average
30 days
Northpointe Bank shoots ahead of the pack in terms of speed (both preapproval and closing times are swift compared to most other lenders) as well as the variety of home loans it offers. Along with the usual mortgage offerings (conventional, FHA, VA), Northpointe Bank also has doctor and professional loans (with no down payment in some cases), and construction and vacant land loans.
Its down payment loan is one of its most unique options, which gives borrowers 100% financing. Borrowers need only to have a minimum 680 credit score to qualify for its no down payment loan. Northpointe Bank also offers jumbo mortgages of up to $3 million with as little as 10% down.
Available in a Majority of States
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 apply online.
Speed
Preapproval times are between 24-48 hours and closing times average around 30 days.
Credit Requirements
Northpointe Bank has a minimum credit score requirement of 620.
Loan Types Offered
Northpointe Bank doesn’t offer home equity loans or home equity lines of credit.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ - They offer several specialty loans |
620
Lower than the national average
30 to 40 days for purchase closings, although the lender can accommodate shorter timeframes if needed.
620
Lower than the national average
30 to 40 days for purchase closings, although the lender can accommodate shorter timeframes if needed.
Established in 1935, PenFed is one of the country’s largest member-owned credit unions. PenFed doesn’t require that you be part of the military to join. For people outside of the military, membership requires a small donation ($10-$15) to a specified charity.
PenFed operates in all 50 states, Washington, D.C., Puerto Rico and Guam. The lender has a handful of branch locations in Maryland, Virginia and Washington D.C., but members also can apply online, too.
Mortgage borrowers will not have to pay any lender fees; they’re just responsible for third-party fees such as appraisal, title, credit report and any other service required to process the mortgage.
Although PenFed historically averages 30 to 40 days for purchase closings, the lender says it will make an effort to close in a shorter time frame, if needed.
The Mortgage Member Benefits Program is a simple, three-tier lender credit for up to $2,500. The amount you save is based on your loan amount, so the bigger the loan, the more the savings.
Available in All 50 States
Although you can apply online, PenFed also offers branches in Maryland, Virginia and Washington, D.C.
How to Apply
Borrowers can begin their application process online. Customer support by phone is available Monday through Friday from 8 a.m. to 8 p.m. ET, Saturday from 8 a.m. to 5 p.m. ET; they are closed on Sunday.
Speed
Loan preapproval takes less than three days. The average closing time is 35 days, which is shorter than the industry average. In some cases, closing can be as short as 11 days.
Credit Requirements
Borrowers must have a minimum credit score of 620 or higher for conventional and VA loans. For jumbo loans, the minimum credit score is 700.
Loan Types Offered
PenFed offers fixed conventional, jumbo and VA mortgage loans as well as home equity loans and refinancing.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ |
580
Same as national average
Average closing time is 47 days
580
Same as national average
Average closing time is 47 days
Rocket Mortgage is one of the largest mortgage lenders in the U.S., offering a completely online experience.
With flexible customer service hours and a robust network of some 43,000 loan officers from about 10,000 mortgage brokerages across the country, borrowers can access customer service day and night.
One of its standout products is the YOURgage mortgage, which is a fixed-rate mortgage that allows you to choose a custom term from eight to 29 years. However, it requires a minimum FICO score of 620.
Available in All 50 States
Rocket Mortgage is an online lender with four branch locations in Charlotte, Cleveland, Detroit and Phoenix.
How to Apply
Borrowers can apply online. Phone support is available from 5:00 a.m. PT to 5:00 p.m. PT, Monday through Friday. Chat support is available from 5:00 a.m. PT to 5:00 p.m. PT, seven days a week.
Speed
Rocket Mortgage offers preapproval in as fast as eight minutes. The loan closing process is slower than average, taking about 47 days.
Credit Requirements
Rocket Mortgage requires a minimum credit score of 580 for FHA and VA loans, and 620 for conventional mortgages. Jumbo borrowers must have a minimum credit score of 680. The lender considers alternative credit data, such as rent and utility payments, when reviewing mortgage applications.
Loan Types Offered
Rocket Mortgage’s product line includes fixed and adjustable-rate mortgages, conventional and jumbo mortgages, FHA loans and VA loans. One of its unique offerings is YOURgage, a fixed-rate mortgage that allows you to choose a custom term from eight to 29 years. Finally, its FHA Streamlineproduct allows existing FHA borrowers to refinance at a lower rate with less paperwork and no appraisal required. The lender doesn’t offer USDA loans, home equity loans or HELOCs.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓- YOURgage Flexible-Term Mortgage |
620
Lower than the national average
30-45 days
Truist, which was born from the SunTrust Mortgage Banks Inc. and BB&T Corp. merger in 2019, offers a wide range of loan options–including specialty loans like mortgages for doctors and construction-to-permanent loans, which is one of the highlights of this lender.
Available in Most States
Truist originates mortgages in 47 states and Washington, D.C.
How to Apply
Borrowers can apply online.
Speed
Applicants can get a same-day mortgage preapproval. Closing on a mortgage can take up to 30 days.
Credit Requirements
Truist requires a minimum credit score of 620.
Loan Types Offered
Truist offers fixed and adjustable-rate mortgages, VA, FHA, jumbo mortgages, doctor loans and construction-to-permanent loans.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓- Doctor loans, construction-to-permanent loans |
580
Lower than the national average
14 days
California-based New American Funding was founded by Rick and Patty Arvielo and is committed to helping borrowers by setting a goal of $25 billion in home loans for the Latino community by 2024. Additionally, it is committed to bridging the racial wealth gap by aiming to loan $20 billion in new mortgages to Black borrowers by 2028.
New American Funding also offers a no down payment mortgage. The I Can mortgage program is a flexible mortgage with terms between eight to 30 years for qualifying borrowers.
Available in Most States
New American Funding operates in most states and Washington D.C., except in Hawaii.
How to Apply
Borrowers can apply online.
Speed
Applicants can get a same-day mortgage preapproval. Closing on a mortgage can take up to 30 days.
Credit Requirements
New American Funding requires a minimum credit score of 580.
Loan Types Offered
30-year fixed-rate mortgage, USDA loan, conventional loan, FHA, I CAN mortgage
(allows you to customize your loan terms from 8 to 30 years), Buydown loan
(allows you to reduce your mortgage payment rate), VA loan, ARM, 15-year fixed-rate and reverse mortgage.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓- I CAN loans |
620
Above the national average
20 days
loanDepot is one of the largest nonbank mortgage lenders in the U.S., with more than 150 branches across the country and a robust online presence. Its loan products include conventional mortgages, government-backed loans, refinances and home equity loans.
Customers who use the lender’s Mello Smartloan online technology can expect to reduce their closing time by 17 days by reducing paperwork and digitally connecting and verifying assets, income and debt. Additionally, Mello Smartloan can digitally conduct title clearance, which is often one of the more time-intensive steps of the underwriting process.
Another benefit of this technology is that it also determines whether some borrowers can waive the appraisal requirement, which can shave time and a few hundred dollars off the cost of your mortgage.
Available in All 50 States
Borrowers can apply online or in more than 150 branch locations in the U.S. loanDepot currently has origination centers in Arizona, Tennessee and two in California and is currently licensed in 50 states.
How to Apply
loanDepot customers can apply online for a mortgage. Once they submit their application, a loan officer will call them to go through the next steps, which include submitting income documentation and personal identification.
Customer service hours are fairly flexible on weekdays, from 8 a.m. to 10 p.m. ET Monday through Friday and Saturday from 11 a.m. to 6 p.m. ET.
Speed
loanDepot’s mortgage preapproval time takes about 15 minutes for borrowers who are not required to supply additional information.
Borrowers who use its Mello Smartloan technology, which is said to cut down on the amount of paperwork applicants are required to submit—and, in some cases, even eliminate the need for a home appraisal—can shorten the closing process by up to 17 days.
Credit Requirements
loanDepot requires a minimum credit score of 620 for conventional and VA home loans, which is the average requirement for most lenders. For FHA mortgages, the credit requirement is less stringent, dipping to a 580 minimum. Finally, jumbo borrowers must have a minimum score of 700.
Loan Types Offered
loanDepot offers fixed-rate mortgages, adjustable-rate mortgages, FHA loans, jumbo loans, VA loans and 203(k) loans. loanDepot does not offer USDA loans.
Loan Type | Yes | No |
---|---|---|
Conventional | ✓ | |
FHA | ✓ | |
VA | ✓ | |
USDA | ✓ | |
Jumbo | ✓ | |
ARM | ✓ | |
Home equity loan | ✓ | |
Specialty | ✓ |
Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Minimum credit score | Mortgage rates | Learn More CTA text | Learn more CTA below text | Learn More |
---|---|---|---|---|---|---|---|---|
Chase | 5.0 | 620 | Lower than the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
Flagstar Bank | 5.0 | 620 | Lower than the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
Mr. Cooper | 5.0 | 620 | Lower than the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
PNC Bank | 5.0 | 620 | Lower than the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
Ally | 4.5 | 620 | Lower than the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
Bank of America | 4.5 | 620 | Lower than the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
Better.com | 4.5 | 620 | Lower than the national average | View Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
Guaranteed Rate | 4.5 | 620 | Lower than the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
Northpointe Bank | 4.5 | 620 | Lower than the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
PenFed Credit Union | 4.5 | 620 | Lower than the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
Quicken Loans | 4.5 | 580 | Same as national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
Truist | 4.5 | 620 | Lower than national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
New American Funding | 4.5 | 580 | Lower than national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |||
loanDepot | 3.5 | 620 | Above the national average | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com |
We reviewed more than 50 mortgage lenders that do business both online and in-person throughout the U.S. The lenders we reviewed represent some of the largest mortgage lenders by volume, which include banks, credit unions and online lenders. Lenders that do not display their interest rates online are not eligible for review.
Forbes Advisor scores lenders based on criteria that have a meaningful impact on the cost of the mortgage, including borrower eligibility requirements; the variety of loan options; and loan features that can impact the homebuying process.
The best lenders scored the highest based on the weighting in the following categories:
Our focus on affordability, accessibility and key features that impact the homebuying process (like preapproval time and closing time) is what we consider reflective of today’s consumer’s top priorities when comparison shopping for mortgage lenders.
The first step in the homebuying process is to make a budget. Consider how much you earn each month and how much you spend (on debt, savings, retirement, college funds, etc.). Most experts recommend spending no more than 30% of your gross monthly income on your mortgage. That should also include taxes, insurance and applicable HOA fees. The Forbes Advisor affordability calculator will help you take the guesswork out of how much you should spend on a house.
Private mortgage insurance, also known as PMI, protects the lender in the event that you default on your mortgage. Typically, if you make a down payment of less than 20% of your home’s purchase price, you will be required to pay PMI. How much you’ll pay for this insurance will vary, depending on factors that include the size of your down payment and your credit score.
Mortgage preapproval represents a lender’s offer to loan the buyer money based on certain financial circumstances and specific terms. Start by gathering documents your lender will need, including a copy of your Social Security card and recent W-2 forms, pay stubs, bank statements and tax returns. The lender you select will then guide you through the preapproval process.
The larger the down payment you are able to make, the less you’ll have to finance when you purchase a home. On a conventional mortgage, making a down payment of at least 20% will prevent you from having to pay for private mortgage insurance. The minimum down payment required varies based on the type of mortgage you obtain. In 2019, the median down payment for first-time buyers was 6%.
Natalie Campisi is a Los Angeles-based reporter who covers mortgages and housing news for Forbes Advisor. Previously, she was the senior mortgage reporter and analyst for Bankrate. She’s also covered unemployment on Capitol Hill and news stories for the Tampa Tribune. Her work has appeared in publications such as CNBC, The Chicago Tribune, and MSN.