Guaranteed Rate stands out to us for its nationwide availability, depth of loan offerings and proven record quality customer service. The lender’s smooth online experience and fast closings also help make it a good option for most borrowers.

Rocket Mortgage stands out for the company’s high level of customer satisfaction and excellent online user experience. We also like the lender’s wide range of loan offerings as well its transparency regarding rates and fees.

Veterans United Home Loans offers a variety of mortgage products, but it’s likely best suited for eligible borrowers looking to obtain a VA loan. We ranked Veterans United highly for its customer satisfaction, smooth online application and its wealth of educational content about the mortgage and homebuying process.

PNC Bankoffers a long list of mortgage options in all 50 states and the District of Columbia. The lender ranked well for its price transparency, accessibility and customer satisfaction. It may be an especially good option for first-time homebuyers who need a government-sponsored loan or borrowers who qualify for the Community Loan program.

With its expertise in the military community and low-cost mortgage options,Navy Federal Credit Union is a good option for eligible borrowers. We like Navy Federal for its price transparency, streamlined application process and loan product variety.

PennyMac stands out for its overall online experience. The lender features daily rate updates and customizable rate quotes on its website. PennyMac some customer benefits in the form of preapproval discounts and ranks among the top lenders for customer satisfaction.

We likeCiti for its nationwide availability, price transparency and customer satisfaction. The lender also incentives borrowers with its relationship pricing offerings and low-down payment mortgage option.

U.S. Bank offers a variety of mortgage types and an easy, digital application process. You also have the option to visit a physical branch for more assistance in 26 states. The bank stands out to us as an all-around good option for new or existing U.S. Bank customers. The main drawback is that you can’t get a rate and fee estimate without getting prequalified.

LoanDepot is a solid lender that offers help both online and in person at more than 200 offices nationwide. The website offers a lot of general information on the homebuying process, but it falls short on price transparency. Your best bet is to call the lender to receive a rate quote and information on fees you might pay.

We likeTruist for its easy-to-use online application process, rate transparency and solid menu of  mortgage products. Truist is also a full-service bank, which means you can conveniently handle your day-to-day banking and mortgage payments in one place, and there are thousands of physical branches where you can get in-person help. Truist comes ranks well in J.D. Power’s average for customer service satisfaction, but falls below other lenders on this list.

One of the first steps in choosing a lender is figuring out who offers the type of mortgage you need.

If you have blemishes on your credit report, like bankruptcy, then anFHA loan is likely to be easier to qualify for than conventional loans. Other loans, such asUSDA andVA loans, offer 100% financing with no down payment required, although some lenders may have their own down payment requirements.

The loan repayment term can also affect the lender you choose. Most lenders offer15-year or30-year mortgages, but if you want a 10-year or a 40-year mortgage, your options will be more limited.

The biggest mortgage lenders have hundreds of locations and are staffed by thousands of loan originators. So, within the same lender, you could have a wildly different experience depending on the individual loan officer you work with.

Talk with a loan officer to evaluate their experience that could be relevant to your situation. For example, if you’re applying for a VA loan or FHA loan, try working with a loan officer who’s familiar with those types of mortgages.

These programs can provide you with thousands of dollars to put toward your down payment and closing costs. For manyfirst-time homebuyers, this assistance is critical. As you’re comparing lenders, be sure to ask if they have these types of programs.

Each application may trigger a hard inquiry on your credit reports, but credit-scoring companies know consumers shop around. Experian will treat all mortgage inquiries made within 30 days as just one inquiry. FICO will do the same within a 45-day period. Try to submit your mortgage applications within this window to minimize the impact on your credit.

Government-backed mortgages, such as FHA, USDA and VA loans, are generally easier to get approved for than conventional loans because they have more flexible credit score and down payment requirements. FHA loans, in particular, are a great option for first-time homebuyers with a low credit score and minimal down payment savings. Backed by the Federal Housing Administration, FHA loans offer 3.5% down payment options for those with credit scores of 580 or above. 

VA loans are backed by the US Department of Veterans Affairs and have no down payment requirement. There is also no minimum credit score as the minimum required score varies by lender, but many lenders like to see a credit score of at least 640 or higher. To qualify for a VA loan, you must be an active or retired US military member or spouse of one. 

Backed by the U.S. Department of Agriculture, USDA loans are intended for low- to moderate-income homebuyers in rural areas. They offer 100% financing, meaning you don’t need to make a down payment upfront.

Most conventional loans require a credit score of 620 or higher, but FHA and other loan types may accommodate borrowers with scores as low as 500, depending on the lender.

For most conventional loans, you’ll need a credit score of 620 or higher. FHA loans and other loans accommodate borrowers with scores as low as 500.

Both private mortgage lenders and banks offer mortgages with rates and terms that depend on your credit score and other financial details. One isn’t objectively better than the other. Whether you go with a bank or a private lender depends on your financial situation and what type of loan you need. 

Traditional banks tend to have stricter credit requirements and fewer loan options than private lenders because they’re subject to federal compliance and reporting laws. Many buyers, especially those with a strong credit history, opt to get a mortgage from their bank simply because they have an account there. 

Private lenders are often a bit more flexible on borrowing requirements because they aren’t backed by a bank or credit union, meaning they don’t have to meet the same federal regulations. They set their criteria. The downside is that you lose certain protections because private lenders don’t have to follow established lending guidelines. But it’s worth exploring private lenders if you’re struggling to qualify for a conventional loan with a traditional bank.

Getting preapproved for a mortgage is a simple process, and with some online lenders, it can take as little as 15 minutes. Preapproval is widely recommended as it shows sellers you are serious buyers. Before starting the process, experts recommend you review your credit history and report any errors to the credit bureaus for correction. Your credit history is a major factor in whether a lender preapproves you for a home loan and at what interest rate. 

To get preapproved, you’ll need to hand over some financial documents, like pay stubs from the last 30 days, your W-2s and potentially tax returns from the last two years to a lender for review. For a full list of the documents you’ll need, clickhere. If preapproved, you’ll receive a preapproval letter indicating your maximum home loan amount, estimated interest rate, loan type and terms.