Best mortgage lenders to help you buy a new home in November 2023
Updated 2:24 p.m. UTC Nov. 6, 2023
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Comparing the best mortgage lenders can help you find a home loan with a competitive rate and term. Many of these lenders offer home loans with flexible down payment and income requirements that can benefit homebuyers who struggle to qualify for a traditional mortgage.
We’ve ranked both traditional and online retail lenders using several factors—including whether the lowest rate is higher or lower than the national average, fees, potential discounts, borrower eligibility, customer experience and the ease of the application process.
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Bank of America
: Best overall
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Better
: Best for FHA loans
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Ally
: Best on a budget
-
Chase
: Best for discounts
-
Navy Federal Credit Union
: Best for military
-
Rocket Mortgage
: Best online lender
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PNC Bank
: Best for first-time homebuyers
Why trust our mortgage experts
Our team of experts evaluated hundreds of mortgage products and analyzed thousands of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 18 mortgage lenders reviewed.
- 180 data points analyzed.
- 6-stage fact-checking process.
Best mortgage lenders
Compare the best mortgage lenders
Methodology
Our expert writers and editors have reviewed and researched 14 popular lenders to help you find the best mortgage. Out of all the lenders considered, the seven that made our list excelled in areas across the following categories (with weightings): loan cost (30%), eligibility and accessibility (20%), customer service (20%) and ease of application (30%).
Within each major category, we considered several characteristics, including minimum APR, maximum allowed debt-to-income (DTI) ratio, minimum credit score requirements and applicable fees. We also evaluated each provider’s customer support options, borrower perks and features that simplify the borrowing process—like time to close and preapproval time.
Why some lenders didn’t make the cut
Of the 14 mortgage lenders that we reviewed, only a fraction made the cut. The lenders that didn’t have high enough scores to be included received lower ratings mostly due to having a lack of transparency around credit score and DTI ratio requirements as well as preapproval and closing timelines. Some of the excluded lenders also had limited customer service options and bad customer reviews.
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The best lenders typically offer low fees and responsive customer service. Two costs that can vary widely between lenders are origination fees and discount points, according to Rebecca Richardson aka The Mortgage Mentor. Borrowers should primarily focus on these expenses as third-party fees like appraisal and title fees won’t vary much.
“[In addition to comparing lender costs,] evaluating a loan officer’s responsiveness, experience and willingness to fully explain your options and the process,” Richardson suggests. “Saving money on your mortgage is important, but so is closing on time with minimal stress.”
Comparing loan estimates from multiple lenders will help you find the lowest rates and fees. The U.S. Consumer Financial Protection Bureau (CFPB) has a loan estimate explainer to understand what to look for as you compare lender fees.
Finding the best rates depends on several factors, including your banking relationship and if you want to qualify for a specialized loan program, such as a first-time homebuyer program or one with a low down payment.
Online mortgage lenders are more likely to charge lower lender fees for traditional home loans than brick-and-mortar locations as they have fewer operating expenses. However, you should still compare your loan APR and total estimated borrowing costs from multiple lenders.
Keep in mind that going with a big bank can be the better option if you’re eligible for a specialty program that offers low down payment requirements or income-based homebuyer grants. You may also qualify for a relationship discount if you’re a current banking customer.
A 30-year fixed interest rate could be a good option for many borrowers as it offers the lowest monthly payment and secures the same rate for the longest period. However, this term usually has higher interest rates than shorter loan terms and more lifetime interest costs.
If you can afford a higher monthly payment, a 15-year term can be an excellent option since you can qualify for a lower rate. You’ll also pay off your mortgage in half the time compared to a 30-year mortgage.
They can be. You can reach out to your lender and ask about reducing:
- Application fees
- Discount points
- Origination fees
- Title insurance
- Underwriting fees
However, choosing a lender with lower origination fees and discount points in the first place can be more effective than asking for a fee reduction during the mortgage application process.
If you’re buying a home, see if the seller will pay a share of the closing costs. Your realtor can assist with this negotiation process.
Editor’s Note: This article contains updated information from previously published stories:
- Mortgage rates jump to a new high for 2016
- Homeowners hurt by COVID-19 can delay mortgage payments, but some say they’re anxious and confused about the real cost
- More than 6M households missed their rent or mortgage payment in September
- Mortgage rates jump again for 2nd week and hit 2017 highs
- Government shutdown 2019: Homebuyers with USDA mortgages can’t close on house sales
- Low down on new low down conventional loans
- Should you get a reverse mortgage? The reasons you should or shouldn’t
- Mortgage delinquencies surge by 1.6M in April, the biggest monthly jump ever
- Here’s how the Fed’s surprise interest-rate cut affects mortgages, credit cards and home equity lines
- Average 30-year mortgage rate jumps to 4.4%
- Mortgage interest rates 2018: Rates hit 7-year high, slow home sales
- Mortgage rates on 30-year home loan hit 5 percent, a nearly 8-year high
- Average 30-year mortgage rate tops 4%
- Mortgage rates: Nowhere to go but up?
- Mortgage rates dip as taper fears subside
- Mortgage applications surge on refinances as rates hit 21-month low
- Will mortgage rates keep dropping? Homeowners and buyers benefit from lower interest rates
- Average 30-year mortgage rate drops to 4.22%
- Mortgage closing costs are on the way up
- Amid surging COVID-19, Fed could take steps to lower mortgage rates, boost economy
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.