Best Online Mortgage Lenders in 2022

Editor’s Note: The Bankrate Score only takes into account the products and services of a mortgage lender; it is not a reflection of the internal operations or practices of a lender. We continually assess each lender we review to ensure the Bankrate Score conforms to this methodology. If you want to consider other lenders, visit Bankrate’s Lender Review Center.

To determine the best mortgage lenders, Bankrate evaluated more than 80 lenders for factors related to affordability, availability and customer experience, giving each a Bankrate score out of five stars. Based on this methodology, the best online mortgage lenders in 2022 typically have a Bankrate Score of 4.8 stars or higher and are available in all or most states in the United States.

The Best Online Mortgage Lenders

Better.com

Better.com is a licensed online mortgage lender in 49 states and Washington, DC

Loans offered: Purchase and refinancing, conventional, jumbo, FHA

What there is to know: Better.com offers an online pre-approval process, completed in three minutes, in addition to chat support and the ability to add documents, check your loan status, and electronically sign documents. The lender’s online tools include affordability, amortization and refinancing calculators, a comprehensive glossary of homeownership and mortgage terms, and a borrower resource center. Better.com does not offer VA or USDA loans, however, which can be limiting for some.

Allied bank

Ally Bank is a bank and lender offering online products and services, including home loans in 43 states and Washington, DC

Loans offered: Purchase and refinancing, conventional, jumbo

What there is to know: Ally Bank advertises daily mortgage rates on its website so borrowers can compare options and has helpful learning materials online. With the Ally app, borrowers can manage their mortgage from their phone. The bank is not (yet) licensed in some states, so check eligibility first and it does not offer government insured loans (FHA, VA, or USDA).

AmeriSave Mortgage Company

AmeriSave Mortgage Corporation is a licensed online mortgage lender in 49 states and Washington, DC

Loans offered: Purchase and Refinance, Conventional, Jumbo, FHA, VA, USDA

What there is to know: As an online mortgage lender, AmeriSave Mortgage Corporation offers three-minute online prequalification, as well as convenient online services such as chat support, electronic signature / file upload, and status tracking. of the loan. On the lender’s website, borrowers can calculate whether to buy or rent, what their mortgage payment or potential refinance savings is, and access a Mortgage Knowledge Center of educational articles and videos. .

Inferior

Lower is a licensed online mortgage lender in 42 states and Washington, DC

Loans offered: Purchase and Refinance, Conventional, Jumbo, FHA, VA, USDA

What there is to know: Lower’s fully digital mortgage process makes it easy for borrowers to get pre-approved or prequalified (if eligible) and apply for a loan online. A highlight: For borrowers saving on their down payment, the lender’s app offers a dollar-for-dollar matching program through an interest-bearing savings account, up to $ 500. The app also comes with credit and interest rate tracking, so borrowers can keep tabs on their score and current mortgage rates while saving money.

LowRates.com

LowRates.com is a licensed online mortgage lender in 48 states, Washington, DC, and Puerto Rico.

Loans offered: Purchase and Refinance, Conventional, Jumbo, FHA, VA, USDA

What there is to know: As the name suggests, LowRates.com promises competitive prices compared to the market. With its TRU approval platform, borrowers can expect a full underwriting in less than 24 hours and apply for a loan through the LowRates website. (However, borrowers cannot be pre-approved or pre-qualified this way.) There are also calculators on the lender’s website and the ability to sign electronically in some situations.

SoFi

SoFi’s financial services include mortgages, available in 47 states and Washington, DC

Loans offered: Purchase and refinancing, conventional, jumbo

What there is to know: SoFi is a personal finance company, so in addition to home loans, members can obtain financing for a range of uses (such as a car or a wedding), as well as access to banking and investing services. Notably, the SoFi app is one of the top 100 Apple Store apps in the financial space. On the SoFi website, borrowers can access a Home Loan Help Center for educational guides and information. One downside though: Like some other online lenders, SoFi doesn’t offer FHA, VA, or USDA loans.

Wyndham Capital Mortgage

Wyndham Capital Mortgage is a licensed online mortgage lender in 47 states and Washington, DC

Loans offered: Purchase and Refinance, Conventional, Jumbo, FHA, VA, USDA

What there is to know: Wyndham Capital Mortgage’s electronic closing experience is exceptional, giving borrowers the flexibility to close from anywhere, and up to 15% faster than the typical industry schedule. Plus, with the Lender’s Priority Purchase Program, borrowers can quickly send a pre-approval, personalized letter to the property, right from their phone. Plus, unlike other online lenders, Wyndham has been in business for 20 years.

What is an online home loan?

An online mortgage is a home loan provided by a fully online lender, with end-to-end digital experience, demand-to-close, or by a physical business with in-person locations and online services.

In recent years, many banks have expanded their capabilities to include a digital mortgage platform, but the majority of mortgages are also issued by non-bank institutions. Non-bank institutions include companies like LoanDepot and Rocket Mortgage, while banks include well-known brands like Bank of America and Wells Fargo.

In addition to digital lenders based online or having a hybrid online and physical presence, there are digital mortgage brokers, such as Morty and Sage, who help borrowers through the lending process, including finding credit. products and loan rates. For borrowers new to buying or refinancing, a broker can be a good place to start.

How does an online home loan work?

With an online mortgage loan, all or more of the stages of the loan process can be completed electronically, either through an app or an online portal. These steps may include:

  • Pre-approval or prequalification
  • Download the application and documents
  • Processing and underwriting loans
  • Fence (sometimes called electronic fence)

By streamlining these steps – and, in the case of a digital lender, no offices or overheads – online mortgages tend to have lower rates and overall costs, which can save thousands of borrowers. .

How to Choose the Best Online Mortgage Lender

Obtaining financing for a home is a process, which is why many borrowers are drawn to online mortgage lenders simply for their convenience, efficiency and speed. These are important factors to consider when finding the best mortgage lender online, but it’s also crucial to compare costs for your individual situation and take the time to read mortgage lender reviews to know what to expect. online experience. When comparing digital lenders, look for:

  • The types of loans they offer
  • Credit and deposit conditions
  • Application and origination fees
  • Lockout rate and other benefits
  • What support options are available

Pros and Cons of Online Mortgages

Advantages

  • Lower mortgage rates and fees due to low overhead costs
  • Online pre-approval or prequalification, often in minutes, and overall shorter turnaround times
  • Real-time status updates

The inconvenients

  • Can’t always connect with a human for questions or help
  • You can’t always get the rates in advance; prior approval may be required
  • Risk of breach or fraud in a fully digital process

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