Investopedia’s list of the best mortgage lenders is based on in-de𒆙pth research and robust data collection from 38 direct-to-borrower lenders. We reviewed each company’s customer experience, reputation, t๊ypes of loans offered, loan costs, borrower requirements, and more. This guide explains the categories and criteria we used to evaluate each lender’s offerings and our scoring process for determining the best mortgage lenders.

Our꧋ editors and researchers independently evaluate all recommended products a🧸nd services. If you click on the links we provide, we may receive compensation. Our advertising partnerships are not a factor in how we evaluate products, although they may affect the order of products you see listed in our articles.

How We Research Purchase Mortgage Lenders

We followed a robust data collection and quantitative evaluation process, beginning with a consumer survey. On March 19-25, 2024, we asked 500 current and prospective mortgage borrowers about their experᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚience and preferences with purchase mortgage lenders and the homebuying process. We wanted to know what mortgage features and lender criteria are most important to people. Based on information collect𝔉ed via the consumer survey, we identified 55 criteria to research and to evaluate lenders. 

To identify companies to include in our rubric, we reviewed Home Mortgage Disclosure Act (HMDA) data and industry rankings from the Scotsman Guide, conducted a rigorous competitive analysis, reviewed our own research and analysis developed in 2022,🌳 and analyzed public interest and trends vi𓆏a Google user behavior (such as search volume). This effort resulted in the final list of 38 lenders to research and evaluate.

We then created a quantitative model to score each lender in 🌠five major categories encompassing 55 criteria that are important to people looking for a purchase mortgage. The research team began with media outreach, followed by online research and customer calls to verify details and fill in any gaps. This work resulted in 2090 total data points, 55 for each of the 38 lenders we researched. The data collection and data verification process was carried out between May 31 and June 28, 2024.

Data Evaluation and Scoring

After collection and verification, we weighted and scored 36 of the 55 criteria—in all, we considered 1,980 data points. Some of the research criteria we collected but didn’t score for our best mortgage lenders ranking were collected ܫfor use in a supplementary rubric (best investment property loans). Others were consolidated into a single weighted criteria (customer contact channels, for example). Some we collected but did not score and instead collected them to enhance editorial richness (J.D. Power customer satisfaction scores, for example).

We used the following method to score criteria:

• Each lender was scored on an overall “Star Rating” scale of 0.00–5.00.
• Binary criteria were scored on a scale of 0 or 1.
• Continuous criteria were scored, with the minimum value rescaled to 0.00 and the maximum value rescaled to 1.00.
• Scaled criteria (e.g., 0–5 points) were scored depending on the number of options (e.g., 0.00, 0.20, 0.40, 0.60, 0.80, 1.00).
• Any data point that was not disclosed by a company was given a score of 0.

Mortgage Evaluation Categories

We arranged the 55 criteria into five categories and weighted them based on insights from our consumer survey, industry research, and🎃 subject matter expertise.

Each category consists of several select criteria:

How Investopedia Ranks Mortgage Features

As described above, we conver♛ted every data point to a score between 0 and 1 and assigned weights to each criterion. A weight of 8%, for example, means that the criterion is worth 8% of the lender’s total score.

Customer Experience

Our pre-data collection research found that customer service is very important for borrowers, and some homebuyers who completed our survey said it’s just as important as the mortgage interest rate when making a decision. Seeking out multiple rate quotes can save borrowers as much as $1,200 annually, according to Freddie Mac’s research, and 18 basis points in interest rate savings, according to the Federal Reserve Bank of Philadelphia. We weighted this category as 48% of the total score for lenders in our rubric.

Educational Resources

We evaluated the depth and breadth of the educational materials, planning guides, calculators, and other resources oꦚn lender websites. First, we rated each lender’s educational resources on a 5-point scale, and then we converted the results to continuous scoring, with the lowest rating of 2 earning 0 points and the highest rating of 5 earning 1 point. We weighted it 11% of the total score.

Online Experience

This criterion rates the lender’s online presence: website usefulness, ease of navigation, organization, design, and more. Like educational resourcesᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚ, we rated each website using a  5-point scale and converted the results to continuous scoring. A rating of 2 earned 0 points, and a rating of 5 earned 1. We weighted this criterion 11% of total score.

Transparency

When contacted, some lenders were more forthcoming with information tꦉhan others. We counted the instances of “not disclosed” in our database for each lender and scored the sum on a continuous scale, with 0 being the fewest (worth 1 point) and 10 being the most (worth 0 points). Nineteen lenders had zero “not disclosed,” and three lenders had 10. This criterion was worth 4% of the total score.

Application Assistance Online

Many lenders offer online chat to help borrowers through the mortgage application process. We scored this on a binary scale where lenders who offered online chat received 1 point, and those without online chat rece🍨ived 0 points. This criterion was worth 3% of the total score.

Current Rates Page

Twenty-three of the 38 lenders we evaluated offered a frequently updat🅘ed current interest rates page on their websites. Sample mortgage rates can help borrowers compare lenders, although samples are no substitute for actual quoted rates. We scored this on a binary scale where lenders with a current rates page or calculator received 1 point, and those without received 0. This✤ criterion was worth 3% of the total score.

Number of Customer Service Contact Points

Lenders who make it easy for borrowers to reach them and ask questions make the process easier. We counted the number of customer service communication channels for each lender (online chat, telephone, email, mobile app). We scored the result on a continuous scale, with two channels scoring 0 points, three channels scoring 0.5 points, and lenders with four communication channelsᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚ earning 1 point. This criterion was worth 2.5% of the total score.

Online Application

An online application process can make applying for a mortgage simpler for both borrowers and lenders. We scored this on a binary scale where lenders with an online application earned 1 point and those without earned 0. This criterio𝓡n was worth 2% of the total score.

Benefits and Grants

We looked at whether or not a lender provided benefits and grants for first-time borrowers or those with lower incomes. We did not evaluate the relati𒁃ve value of these programs. We scored this on a binary scale where lenders offering benefits and grants earned 1 point, and those who do not earned 0 points. This criterion was worth 2% of the total score.

Hardship Programs

Simꦍilar to benefits and grants, we examined whether lenders offer relief for borrowers struggling to make mortgage payments. We scored this on a binary scale where lenders that offer such assistance earned 1 poin🅺t and lenders who do not earned 0 points. This criterion was worth 2% of the total score.

Special Programs and Loans for Veterans

Many lenders offer Department of Veterans Affairs (VA) home loans, so we identified lenders who specialize in them or make ℱan extra effort to work with veterans. We scored this on a binary scale, with lenders that offer such programs earning 1 point and lenders that do not earning 0 points. This criterion was w🅰orth 2% of the total score.

Pre-qualification

澳洲幸运5官方开奖结果体彩网:Pre-qualification can help borrowers understand how much they can borrow and the costs without going through the more rigorous pre-approval process, which results in a hard credit check♚. We scored this on a binary scale where lenders that offer pre-qualification earned 1 point, and lenders that do not earned 0 points. This criterion was worth 2% of the total score.

Digital Closing

Some lenders provide a completely remote or digital closing process—even for document signing, in some U.S. states. We scored this on a binary scale where lenders with digital closing processes (including digital document signing or a hybrid process with notarized document signing) received 1 point, and those without it received 0 poi🌱nts. This criterion was worth 2% of ꧟the total score.

Digital Tracking

Tools like online or mobile-app-based tracking of an application ไthrough approval and closing can give borrowers peace of mind from start to finish. We scored this on a binary scale, with lenders who offer this earning 1 point and lenders who do not earning 0 points. This criterion was worth 1.5% of the total scoreꦯ.

Operational Features

We measured customer-focused infrastructure as another way to evaluate lender customer service. Lenders with many physical locations and loan officers licensed in all 50 states are more likely to be able to support borrower needs. We weighted and scored four criteria in this category for a total weight of 16%.

Servicing Division

It’s important for borrowers to know if a lender will service their home loan or if it will be passed to a third-party servicer. We scored thi𝓰s on a binary scale where꧒ lenders with in-house servicing earned 1 point, and those without it earned 0 points. This criterion was worth 5% of the total score.

Number of Loan Officers

About 95% of lenders we evaluated employ hundreds or thousands of loan off📖icers who process and manage loan applications. We scored this on a continuous scale, with Wells Fargo at the top with 22,209 loan officers and Ally Bank at the bottom with just 4. Wells Fargo’s highest number of loan officers translated to a score o🐭f 1, while Ally Bank’s limited number converted to 0 points. This criterion was worth 5% of the total score.

State Licensing

Of the 38 lenders that we evaluated, 34 offer loans in all 50 states, and four do not. We scored this on a continuous scale, with lenders that offered loans in all 50 states scoring a 1 and Lennar Mortgage sc♊oring a 0, as it only offers loans in 31 states. This criterion was worth 4% of the total score.

Brick-and-Mortar Branches

As with loan officers, the number of physical branches indicates how convenient it is to do business with a𓆏 lender. We scored this on a continuous scale, with Chase’s 4,912 physical branches scoring a 1 at the top and NBKC Bank’s 4 locations scoring a 0 at the bottom. This criterion was worth 2% of the total score.

Reputation

This category represents what current and former customers of each lender have reported about their experience. It also includes the lender’🔥s size and years in business. Reputation accounts for 14% of the total score.

Zillow Loans Score

The lender’s rating on the Zillow Home Loans marketplace. We scored this on a ꦡcontinuous scale, with three companies receiving a Zillow Home Loans rating of 5 at the top, which we converted to a score of 1. USAA Mꩲortgage garnered a Zillow Home Loans rating of 3.55 at the bottom, which we converted to a score of 0. This criterion was worth 5% of the total score.

Trustpilot score

This is the lender’s score on Trﷺustpilot. We scored this on a continuous scale, with Veterans United’s💎 Trustpilot rating of 4.9, translating to a score of 1 at the top. Truist and Newrez each received Trustpilot ratings of 1.2 at the bottom, which we converted to a score of 0. This criterion was worth 4.5% of the total score.

HMDA Rank

The Home ▨Mortgage Disclosure Act requires mortgage lenders to report to the government numerous details of every loan application they process, whether approved or denied. This particular ranking is based on the dollar value of mortgage loans the lender funded in 2023. We scored this on a continuous scale, with Rocket Mortgage’s HMDA rank of 2 at the top converted to a score of 1. SoFi Mortgage’s HMDA rank of 274 was at the bottom of our list of lenders, and that was converted to a score of 0. This criterion was worth 2% of the total score.

Years in Business

We looked at the number of years each institution has been in business to gauge its strength, stability, and ongoing customer service. We scored this on a continuous scale, with Bank of America having been in business for 240 years at the top. This was adjusted to a score of 1, whereas NBKC Bank has only been in business for 9 years and was at the b😼ottom, translating to a score of 0. This was worth 1.5% of the total score.

Regulatory Action

Of all the lenders in our database, only Truist and NBKC Bank have not had regulatory action taken𒐪 against them. We scoreওd this on a binary scale where a regulatory action resulted in a score of 0, and no action resulted in a score of 1. This was worth 1% of the total score.

Types of Loans Offered

The conventional 30-year fixed-rate mortgage isn’t the only option for homebuyers. We looked at 12 types of mortgage loans and singled out six that every lender should offer (in addition to fixed- and adjustable-rate conventional loans): USDA, FHA, VA, Jumbo, Non-QM, and Investment Property. We scored each of these on a binary scale where lenders offering a loan type earned 1 point and lenders that did not earned 0 points. Each loan type was weighted at 2%, except for Investment Property, which we weighted at 1%. Thisꦏ was ꦉworth 11% of the total score.

Loan Costs and Borrower Requirements

Loan costs and borrower requirem💝ents account for 11% of each lender’🉐s total score, spread across eight criteria, with weights ranging from 2.5% to 1%.

APR

Twenty-three of the 38 lenders we evaluated offer interest rate estimates. We collected these rates daily between June 5 and June 20, 2024, and again between July 1 and July 10, 2024. We then compared each lender’s combined average rate against the average of Investopedia’s published daily average purchase mortgage rates, combined into an average over the same period. We scored the results on a continuous scale where companies with a lower-than-average rate scored 1 point, those with a rate that was about average received 0.67 points, and those with a higher🗹-than-average rate scored 0.33. Lenders that do not have a page for getting a rate quote or estimate received a score of 0. We weighted APꦰR at 2.5% of the total score.

Lender Fee

Most lenders charge a fee to cover their costs related to underwriting and originating a loan. We scored this on a continuous scale, with Ally Bank’s $0 lender fee being the lowest among our evaluated lenders. This fee translated to a score of 1 point. Veterans United’s fee of $3,500 was the highest and received a score of 0. The lender fee was 💙worth 2% of the total score.

Days to Closing

We collected days to closing to determine which lenders have a faster closing process on average (although many factors can impact closing time other𒊎 than just lender efficiency). We scored this on a continuous scale, with Fairway Mortgage reporting a minimum of 10 days, which converted to a score of 1. Three companies took about 38 days to close, on average, and because of that, they received a score of 0. This was worth 1.5% of the total score.

Minimum Down Payment (30-Year Fixed Loan)

While the required minimum dow🧸n payment is often determined by guidelines set by Fannie Mae and Freddie Mac, lenders may have their own requirements above those mi꧃nimums. We scored this on a continuous scale, with 3% being the lowest (worth 1 point) and 5% being the highest (worth 0 points). This was worth 1% of the total score.

Minimum Credit Score (30-Year Fixed Loan)

Like down payments, minimum credit scores are usually determined by guidelines set by Fannie Mae and Freddie Mac, although lenders have some flexibility. We scored this continuously, with Fairway Mortgage’s 550 being the lowest, earning a score of 1 point, and Rocket Mortgage’s 680 being the highest, earning a score of 0. This was worth ꦆ1% of the total score.

Cash Reserves

Some lenders require that borrowers set aside some cash to provide a budgetary cushion, usually measured in months. We scored this on a continuous scale, with 0 months being the smallest and translating to a scoꦰre of 1 and 9 months being the largest and translating to a score of 0. This was worth 1% of the total score.

Discount Points

澳洲幸运5官方开奖结果体彩网:Discount points allow borrowers to “buy down” the interest rate on the loan with cash upfront. For example, a point (which is worth 1%—one percentage point—of the loan’s value) might buy a 0.25% rate reduction, although this can vary by lender. We scored this on a binary scale, with lenders that offer points scoring a 1 and those that don’t scoring a 0. (Note that no lenders reported “No” to this question, although several did not disclose whether they di🉐d or did not offer points, so we gave those that were not disclosed 0 points.) This was worth 1% of the total score.

Lender Discount

Many lenders offer discounts, such as a discounted or waived lendꦉer fee, to reduce closing costs. We scored this on a binary scale with lenders that offer discounts scoring a 1 and those that do not scoring a 0. This was w🙈orth 1% of the total score.

Articles That Use This Methodology

This research, data, and analysis are used to identify the best mortgage lenders for articles like the Best Mortgage Lenders and the Best Mortgage Lenders for Bad Credit. You’ll also find that this data and research was used to write individual mortgage lender reviews, like our 澳洲幸运5官方开奖结果体彩网:Rocket Mortgage Review or 澳洲幸运5官方开奖结果体彩网:Bank of America Mortgage Review. 

Meet the Team

Isaac Braun

Research Manager

Isaac Braun is the Research Manager for Investopedia. He has analyzed data for over a decade, with over five years in the digital media landscape, and he holds a degree in communication and culture from The Media School at Indiana University - Bloomington. Isaac believes it is paramount to provide the most accurate data-driven product recommendations to help readers make educated decisions.

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Sana Siddiqui

Research Analyst

Sana Siddiqui is a full-time Research Analyst at Investopedia with over 10 years of experience focusing on financial products and services. She has a bachelor's in communications from Southern New Hampshire University. Sana's expertise in lending and underwriting gives her broad insight into the business practices of the financial industry.

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Ben Woolsey

Associate Editorial Director, Financial Products and Services

Ben Woolsey is a full-time Associate Editorial Director at Investopedia, focusing on financial products and services. He has worked in marketing, operations, and content management roles for banks, credit card issuers, and credit card marketplace websites. Ben has two degrees—MBA/BSBA—from the University of Arkansas.

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Lars Peterson

Senior Editor, Financial Product Reviews

Lars Peterson joined Investopedia in 2023 as a senior editor of financial product reviews with a focus on personal loans, credit cards, mortgages, and other financial products and services. Lars has over 20 years of experience as a writer and editor in personal finance, business, and small business. He has a master's in English from California State University, Long Beach.

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