How to Find the Best Mortgage Lender for Your Home Purchase in 2024
How to Find the Best Mortgage Lender for Your Home Purchase in 2024. Buying a home is one of the most important and expensive decisions you will ever make. And unless you have enough cash to pay for it upfront, you will need to take out a mortgage to finance your purchase. But how do you find the best mortgage lender for your needs, budget, and preferences?
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With so many mortgage lenders in the market, it can be hard to compare their features, rates, fees, and customer service. That's why we have done the research for you and ranked the top five mortgage lenders of 2024 based on various criteria, such as loan options, closing time, customer satisfaction, and more.
Whether you are a first-time homebuyer, a seasoned investor, or a borrower with bad credit, we have a lender for you. Here are our top picks for the best mortgage lenders of 2024:
1. Rocket Mortgage by Quicken Loans: Best Overall
Rocket Mortgage is our top choice for the best overall mortgage lender, because of its excellent reputation, diverse loan products, and fast and easy online process. Rocket Mortgage has won several awards from J.D. Power, ranking second in the 2023 U.S. Mortgage Origination Satisfaction Study and first in the 2023 U.S. Mortgage Servicer Satisfaction Study.
Rocket Mortgage offers a wide range of mortgage options, including conventional, jumbo, FHA, and VA loans. It also caters to borrowers with different credit profiles, accepting credit scores as low as 620 for conventional loans and providing FHA options for those with lower scores.
One of the best features of Rocket Mortgage is its speed and efficiency. It boasts a typical closing time of 30 to 45 days, which is faster than the industry average. It also allows you to complete the entire application process online, from uploading documents to e-signing papers.
The only downside of Rocket Mortgage is that it does not disclose its fees upfront, so you might have to wait until you get a loan estimate to find out how much you will pay. It also does not offer USDA loans, which are popular among rural homebuyers.
Pros:
- Highly rated for customer service
- Streamlined digital application process
- Swift closing time
Cons:
- Absence of USDA loans
- Possible higher fees compared to other lenders
2. Fairway Mortgage: Best for First-Time Homebuyers
Fairway Mortgage is our top choice for the best mortgage lender for first-time homebuyers, because of its commitment to making homeownership accessible and affordable.
Fairway Mortgage offers FHA loans and conventional loans with a minimal down payment requirement of just 3%, which is lower than many other lenders.
Fairway Mortgage also has a unique program called CrediTools, which helps borrowers improve their credit scores over time. CrediTools provides a personalized credit improvement plan, along with coaching and monitoring, to help you achieve your financial goals.
Another benefit of Fairway Mortgage is its educational resources, which help new homebuyers understand the mortgage process and make informed decisions. Fairway Mortgage also has specialized mortgage options for physicians, who often face challenges in qualifying for loans due to their high student debt and irregular income.
The only drawback of Fairway Mortgage is that it does not advertise its rates on its website, so you will have to contact a loan officer to get a quote. This might be inconvenient for some borrowers who prefer to compare rates online.
Pros:
- FHA and low down payment loans available
- Personalized credit improvement plans
- Specialized mortgage options for physicians
Cons:
- Lack of advertised rates on the website
3. Bank of America: Best Big Bank Lender
Bank of America is our top choice for the best big bank lender, because of its financial stability, wide network, and various loan programs. Bank of America is one of the largest and most trusted banks in the country, with over 4,300 branches and 17,000 ATMs nationwide.
Bank of America offers various loan programs, including those for borrowers with small down payments and less-than-perfect credit. It also has a program called Affordable Loan Solution, which allows borrowers to get a conventional loan with a 3% down payment and no mortgage insurance.
One of the advantages of Bank of America is that it offers relationship discounts for existing customers, such as lower interest rates, reduced fees, and cash-back rewards. It also has a grant program for moderate-income homebuyers, which provides up to $10,000 in closing cost assistance and up to $7,500 in down payment assistance.
Bank of America also has a user-friendly online platform, which allows you to pre-qualify and apply for a loan, upload documents, and track your loan status. However, like Rocket Mortgage, Bank of America does not provide much information about its fees on its website, so you will have to wait for a loan estimate to find out the exact costs. It also does not offer USDA loans, which might be a drawback for some rural homebuyers.
Pros:
- Relationship discounts for BofA customers
- Grants for moderate-income homebuyers
- Online pre-qualification and application
Cons:
- Limited information about fees
- No USDA loans offered
4. Prosperity Home Mortgage: Best for Bad Credit
Prosperity Home Mortgage is our top choice for the best mortgage lender for bad credit, because of its flexible lending criteria and low down payment options. Prosperity Home Mortgage accepts credit scores as low as 600 for conventional loans, which is lower than most other lenders.
Prosperity Home Mortgage also offers low down payment options, such as FHA loans, which require only a 3.5% down payment and a 580 credit score. It also has a program called HomeReady, which allows borrowers to get a conventional loan with a 3% down payment and a 620 credit score.
The main drawback of Prosperity Home Mortgage is that it is not available in Hawaii and Iowa, so borrowers in those states will have to look elsewhere. It also does not disclose its rates and fees online, so you will have to apply or talk to an agent to get a quote.
Pros:
- Low down payment options
- Lower credit score minimum
Cons:
- Not available in Hawaii and Iowa
- Rates and fees not disclosed online
Read Also - 6 Brilliant Tips for Getting a Home Mortgage Newbies
Conclusion
Choosing the best mortgage lender for your home purchase is a crucial decision that can affect your financial future. Therefore, it is important to do your research and compare the different lenders based on your needs, preferences, and goals.
We hope that our guide has helped you narrow down your options and find the best mortgage lender for you. Whether you choose Rocket Mortgage, Fairway Mortgage, Bank of America, or Prosperity Home Mortgage, you can rest assured that you are working with a reputable and reliable lender that will help you achieve your homeownership dreams.