Top mortgage lenders of August 2024

Applying for a mortgage is a major financial decision, but it shouldn’t be overly complicated. The best mortgage lenders have a variety of affordable home loans, top-notch customer service, and a simple lending process. They offer speed, convenience, and competitive rates.

No matter which lender you choose, it’s important to find one that will work with you from the initial application to approval and beyond. Learn more about the best mortgage lenders of 2024 and how to choose the best one for your homebuying needs.

Best mortgage lenders of 2024

Not all mortgage lenders are created equal. The best ones tend to have competitive mortgage interest rates, minimal fees, and an array of home loan options. They may also have mortgage options for first-time buyers or down payment assistance programs.

• NBKC Bank: Best mortgage lender for closing cost guarantees
• Allied Mortgage Group: Best mortgage lender for industry experience
• Northpointe Bank: Best mortgage lender for flexible down payment options
• Mutual of Omaha: Best mortgage lender for customer reputation
• Better Mortgage: Best mortgage lender for online applications

Best mortgage lenders comparison

NBKC Bank

NBKC Bank offers a variety of mortgage loans, including conventional loans, FHA loans, VA loans, and jumbo loans. While based in Kansas City, Missouri, this lender operates in all 50 states. Prospective borrowers can request a rate quote and apply online or visit a branch in Missouri or Kansas and complete the lending process in person.

This lender is best for borrowers who want a guaranteed closing cost estimate or the option for an entirely digital application process. 
 

Allied Mortgage Group

Allied Mortgage Group has been offering home purchase loans to nearly any type of buyer for over 30 years. The lender even offers specialty loans, including self-employed loans for borrowers with nontraditional jobs. Other loans include conventional, jumbo, FHA, USDA, and VA loans.

Allied Mortgage Group is best for those seeking specialty loans from an experienced lender. However, the lender is not available in all states. You’ll need to verify whether it operates in your state before applying.

Northpointe Bank

Northpointe Bank offers a variety of home financing options, including conventional, FHA, VA, USDA, and jumbo loans. The lender also has a temporary buydown program, delayed financing option, mortgage refinancing, and up to a 90-day rate lock.

Northpointe Bank's process is simple and completely digital. The lender also has a unique underwriting process that starts on day one, meaning faster approval and closing times. 
 

Mutual of Omaha Mortgage

Based in Nebraska, Mutual of Omaha Mortgage offers home financing and refinancing solutions to borrowers in 49 states and Washington, D.C. The application process is digital, but prospective borrowers can also visit branch locations in 30 states and Puerto Rico.

Mutual of Omaha Mortgage also offers online pre-approval, low-down-payment loans, online chat, and an intuitive mortgage app. 
 

Better Mortgage

Because it's a fully digital lender, Better Mortgage offers a speedy online application process. You can get a mortgage pre-approval online within three minutes and a commitment letter within 24 hours. It also boasts a quick underwriting turnaround: Better says it can close home loans in 10 to 15 days, which is faster than the industry average. 

Better Mortgage also offers conventional, FHA, VA, and jumbo loans, as well as refinance options. 

Methodology

To determine the best mortgage companies, Fox Money evaluated lenders based on several different categories: rates and fees, reputation, eligibility, efficiency, customer experience, and discounts and perks. We also looked at the types of loans offered by each lender for research purposes only, they did not factor into the overall score. We assigned a score out of five stars to each lender based on our findings. 

Learn more about how Fox Money rates lenders by checking out Mortgage Lender Rating Methodology.

Mortgage rates forecast for 2024

After hitting its peak at 7.79% in November 2023, 30-year fixed-rate mortgages have dropped, hovering just below 7%, according to Freddie Mac. 

While there appears to be a downward trend, rates aren't likely to see a significant drop unless the Federal Reserve lowers its benchmark interest rate. On July 31, 2024, the Federal Open Market Committee announced it would keep the effective federal funds rate between 5.25% and 5.5%. The rate is likely to remain in this range until inflation moves closer to 2%, though Federal Reserve Chairman Jerome Powell said a cut could be considered in September 2024.

Types of mortgage loans

The leading mortgage lending companies have different types of home loans to choose from. While some lenders have their own specialty loans, most offer these major types of mortgages:

• Conventional loans: These loans are funded by banks, credit unions, and online lenders. Conventional loans must follow guidelines set by Fannie Mae or Freddie Mac. They may be harder to qualify for than government-backed loans, but they’re usually cheaper. If you put less than 20% down, many lenders will require private mortgage insurance (PMI).
• Jumbo loans: These loans have higher borrowing limits than conventional loans, ranging from $766,550 to $1,149,825 in most counties. Because of the higher amounts, jumbo loans generally have more stringent requirements — such as a higher credit score, lower DTI, or larger down payment.
• FHA loans: This is one of the most popular mortgage options for borrowers financing their first home — according to the Department of Housing and Urban Development, over 82% of FHA loans granted last year were taken out by first-time homebuyers. FHA loans are regulated and insured by the Federal Housing Administration. They typically have lower requirements for credit score and down payment. FHA loans may also have lower closing costs than conventional loans, but they do require mortgage insurance.
• USDA loans: Guaranteed through the U.S. Department of Agriculture (USDA), these home loans come with no down payment requirement. They’re geared toward low- to moderate-income borrowers, so you’d need to meet income limits for the area where you hope to buy. To qualify, you must purchase a home in a designated rural area. You can use the USDA’s website to check property and income eligibility.
• VA loans: Backed by the Department of Veterans Affairs, these are available to eligible service members, veterans, and surviving spouses. They may have lower interest rates and no down payment requirements. There’s no monthly mortgage insurance requirement, but there is a funding fee due at closing worth 1.25% to 3.3% of the loan amount.

Each major loan type comes with its own terms, requirements, fees, and limits. Before you start shopping for homes, find out which mortgages you qualify for. For example, if you’re a veteran, you might find a better interest rate through a VA loan vs. a conventional loan. 

How to choose a mortgage lender 

It’s important to choose the best mortgage lender for your goals and needs. This means finding one with competitive rates, low fees, solid customer service, and fast approval and closing times. But it also means choosing one with a variety of home purchase options.

Here are the key factors to consider when choosing a lender:

• Loan types: The best home loan providers offer the most common home loan programs, but many also have specialty programs — like mortgage options for first-time buyers and down payment assistance programs to help with upfront costs.
• Eligibility requirements: Each lender has its own credit score, down payment, DTI, and income requirements. Certain loan types have additional requirements.
• Repayment terms: Loan terms vary by lender and loan type. Most home loans come with 15- or 30-year terms. Longer terms generally mean lower monthly payments but higher overall interest charges.
• Rates and fees: The best lenders offer competitive mortgage interest rates. They’ll also have low fees — like origination, application, and closing fees. 
• Availability: Some lenders are only licensed to operate in certain states. Contact your bank, credit union, or real estate agent for local and national lenders in the area you want to buy.
• Customer service and reputation: Your lender should have a solid reputation and a good track record of working with customers like you. For example, if your credit needs work, choose a trusted lender for lower credit scores. You can check lender ratings on sites like the Better Business Bureau (BBB), Trustpilot, and the Consumer Financial Protection Bureau’s Consumer Complaint Database.

How to apply for a mortgage 

While every lender has its application process, these are the typical steps to getting a mortgage:

1. Gather your documents: Start by getting your paperwork in order. Commonly required documents include proof of income, employment, and identification. You may also need bank statements, federal tax returns, and proof of liabilities or assets.
2. Shop around: Compare several lenders before choosing one. Check out their loan products, rates, fees, and lending criteria.
3. Get pre-approved: This process will give you a more accurate idea of what you qualify for and at what rate. It can also help you determine your budget as you shop for homes.
4. Shop for properties and make an offer. With your pre-approval letter in hand, start looking around for homes. A pre-approval letter will show sellers that you’re a serious buyer and have financing lined up. Once you find a home you like, make an offer. 
5. Complete the formal application: If your offer is accepted, you can move forward with your chosen lender’s official application process. You may need to upload additional documents upon request, so submit what your lender asks for promptly to speed up the application. The lender will review your application and move forward with the underwriting process.
6. Close on your new home: Three days before you close on your new home, you’ll receive a Closing Disclosure detailing your loan. It will list your monthly payment, fees, and terms. Review it for accuracy, and ask questions if you’re unsure of anything. Then, on the scheduled closing date, pay any upfront costs — like the down payment and closing fees — and sign your final documents.

Best mortgage lenders FAQ

How to get the best mortgage rate?

Mortgage rates depend on several factors, including your credit score, down payment amount, and the effective federal funds rate. To get the most competitive mortgage interest rate possible, save up for a larger down payment, work on your credit (if needed), and compare several lenders. You can also buy discount points, which lets you spend money upfront to get a lower rate.

Can I get a mortgage with a low down payment?

Some lenders offer low-down-payment mortgages. For example, USDA loans come with a 0% down payment requirement. FHA loans, a popular mortgage option for first-time buyers, have lower down payment requirements. If your credit score is 580 or higher, you can put down as little as 3.5%. If your credit score is 500 to 579, you will need to put down 10%.

Are local lenders better than national ones?

A local lender might be better if you’re looking for a more personalized, hands-on experience or have an existing relationship with that lender. However, national lenders may have more loan options, larger loan limits, or specialty programs available. The best option is ultimately up to you and what you need.

What are the benefits of online mortgage lenders?

Online mortgage lenders typically offer a more streamlined lending process — from the initial application to approval. These lenders usually have an online portal where you can manage your loan, including repayment, from the comfort of your home. Some also have a convenient app for this purpose.