Mortgage Lender Rating Methodology
We collected over 300 data points on 16 lenders to determine which are the best overall and best for specific categories, such as first-time homebuyers or those with less-than-stellar credit scores.
Our mission at Fox Money is to give you the resources and tools to make confident financial choices. Although our partners may compensate us, we maintain an objective, unbiased approach to evaluating lenders across several key metrics. All opinions expressed in articles, reviews, and elsewhere are entirely our own. The Fox Money marketplace does not include all available lenders or all of the displayed lenders' available services and product offerings.
How we assess and score lenders
- Choose lenders: Senior editors consider a variety of factors, such as lender size and type, search traffic, and rankings, before deciding whether to include them. Fox Money partner lenders are always included, but editors do not give preference to partners.
- Set categories and criteria: Once the lenders are chosen, the next step is deciding what criteria should be evaluated. This is where categories like customer experience, rates and fees, and reputation come into play.
- Determine the weightings: Categories are weighted by the senior editors based on their importance to the consumer. For example, rates and fees have a high weight because these are some of the main concerns of a person shopping for a loan. Weighting will also differ depending on the superlative. Minimum credit scores, for example, will have a higher weight when determining the best lender for bad credit scores.
- Collect the data: After the categories and criteria are finalized, senior editors and editorial staff reference internal documentation and lenders’ websites and speak to lender representatives to gather and verify the data.
- Score the lenders: Once all the data is in, the senior editors score the lenders based on that information. For example, if a lender offers pre-approval within 24 hours, that lender will get a higher score than a lender that provides pre-approval in 24-48 hours.
- Assign star scores: Once the data and scoring are complete, the final star score (on a scale of 0 to 5) is assigned to each lender. That score will differ depending on the superlative since each one will have different weightings per category.
Below are the weightings assigned to the general categories for the best mortgage purchase lenders — which comprise individual criteria that are also weighted.
Rates and fees: 34%
Definition: The APR offered by each lender
This category includes the annual percentage rates (APRs) that lenders offer, which are the interest rates plus any fees the lender charges (such as origination fees, if applicable), as well as rate options (fixed and/or adjustable), and whether they offer a rate lock.
Why it matters to the borrower
This criteria is important because it will help potential homebuyers understand how affordable a lender is and how flexible they are in terms of their rate offerings.
Reputation: 25%
Definition: Third-party reviews
This category is made up of both Trustpilot and Better Business Bureau (BBB) ratings.
Why it matters to the borrower
The scores for this criteria will help homebuyers compare lenders when it comes to response time, knowledgeability, and professionalism — three components that are very important when making such a significant financial decision.
Eligibility: 17%
Definition: Who can qualify for a loan
This category includes requirements lenders set for minimum credit score, availability, debt-to-income ratio (DTI) requirements, and whether low-down/no-down payment is allowed.
Why it matters to the borrower
These criteria are important because they will help the homebuyer understand how flexible or strict the lender is and if the lender may be an option for the homebuyer.
Efficiency: 17%
Definition: How quickly you can get pre-approved and close on your home
This category reflects pre-approval time and closing time. Pre-approval can take between an hour to several days, while closing time can range from a handful of weeks to a couple of months.
Why it matters to the borrower
Whether you’re still shopping or looking to make an offer on a home soon, it’s important to know which lenders can get you pre-approved the fastest. Closing time is another crucial consideration for homebuyers, especially if they need to relocate for school, work, or some other commitment by a specific date.
Customer experience: 6%
Definition: How easy it is to communicate with the lender and navigate its site
Why it matters to the borrower
This criteria reflects the homebuying experience: How easy is it for a customer to reach a representative or get the information they need? The lender scores in this category answer those questions and more.
Discounts: 1%
Definition: Loyalty discounts, grants, or other perks
This category looks at whether lenders offer any perks, grants, or options to use discount points to lower interest rates or reduce closing costs.
Why it matters to the borrower
This factor is particularly important to homebuyers who are bogged down by high interest rates and home prices and looking for opportunities to save.