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Best Online Mortgage Lenders of March 2024

Review Updated
Matt Frankel, CFP®
By: Matt Frankel, CFP®

Our Mortgages Expert

Ashley Maready
Check IconFact Checked Ashley Maready
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

Applying for a mortgage is easier than ever before, and many home buyers can now complete the entire process online. That means no awkward meetings at the bank -- you won't even need to change out of your pjs. (Unless you really want to.)

It's also easier to compare mortgage lenders with today's technology. Thanks to online lending, you can compare multiple mortgage lenders and pick the one that's best for you.

With that in mind, we've researched the top mortgage companies to bring you our picks for the best online mortgage lenders. Check out our shortlist below as well as a rundown of some of the most important things to know about the online mortgage industry.

Our best online mortgage lenders

Lender Best For Next Steps
Award Icon 2024 Award Winner
Graphic of Rocket Mortgage®
Rocket Mortgage®
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5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For

Streamlined online application

Check Rates for Rocket Mortgage®

On Rocket Mortgage/Quicken Loans' Secure Website.

Award Icon 2024 Award Winner
Graphic of Better
Better
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4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For

No lender fees and online application

Check Rates for Better

On Better's Secure Website.

Graphic of Guaranteed Rate Mortgage
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4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For

Digital experience & down-payment assistance

Graphic of loanDepot
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4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For

Refinance specialist

Graphic of Ally Mortgage
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4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For

Fast pre-approval

Graphic of Bank of America Mortgage
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5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For

Diverse loan offerings and relationship discounts

Graphic of New American Funding
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For

Diverse options and homebuyers building credit

Tips for comparing online lenders

Other than interest rates, here are a few other things to consider when comparing mortgage lenders:

  • Origination fees: Some online lenders have little or no origination fee; others may charge hundreds or thousands of dollars.
  • Loan types: It's important to make sure the lender offers the type of home loan you need, as not all lenders offer all types of mortgages. If you're looking for an FHA or VA loan, for example, make sure the lender offers those mortgage types.
  • Other perks: Some mortgage lenders may offer discounts for opening additional accounts (like a checking account). Others offer an online process but still have physical branches you can visit if you need in-person service.

These are just a couple of factors to consider, but the point is that you should pick the lender that fits your situation. Also, make sure a lender is licensed in all 50 states (or at least in the state you're buying a home) -- not all online mortgage lenders are nationwide.

Award Icon 2024 Award Winner
Check Rates for Rocket Mortgage®

On Rocket Mortgage/Quicken Loans' Secure Website.


Best for: Streamlined online application

Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Rocket Mortgage, originally known as Quicken Loans, led the transition to a full digital experience and online-only applications. Its seamless process is one reason why it has become the largest U.S. lender. It is consistently ranked No. 1 on J.D. Power’s customer service rankings and has a robust and high-quality app that makes it easy to use.

Min. Credit Score 580 FHA 620 other mortgage products

  • 580 - 680

Min. Down Payment 0%-3.5% (FHA & VA loans) 3% (conventional loans)

  • 0% - 3.5%

Key Features

  • Online-only
  • High allowable debt-to-income
  • Low down payment options
  • Opportunities to get cash towards closing
  • High customer satisfaction ratings

Loan Types

  • Conventional
  • FHA
  • VA
  • Jumbo

Fixed Rate Terms

  • Customizable (8 -30 years)

Adjustable Rate Terms

  • 10/6, 7/6
Award Icon 2024 Award Winner
Check Rates for Better

On Better's Secure Website.


Best for: No lender fees and online application

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Better has the right combination of features and perks, including no unnecessary fees, low mortgage rates, and a fast 100% application process. Better Mortgage does not charge lender fees such as those for origination, application, processing, and underwriting. As a result, Better states that new home buyers save $8,200 and customers who refinance save $8,200 over the life of their loans. In addition, Better states that applicants can get a personalized rate quote in under five seconds and a pre-approval in minutes. This can help homeowners cut their costs while saving time. The lender also offers $150 off closing costs when applying through The Ascent site.

Min. Credit Score

  • 620

Min. Down Payment

  • 3%

Key Features

  • One Day Mortgage. Lock a rate, get a Commitment Letter in 24 hrs. Terms apply.
  • Close 10-17 days faster than industry average
  • Apply 100% online, entirely on your schedule
  • $100 billion in online home loans
  • Better Price Guarantee: Better will match any valid competitor's offer, and credit you an extra $100. If Better can't, the $100 is yours to keep.

Loan Types

  • Conventional
  • FHA
  • Jumbo

Fixed Rate Terms

  • 10y, 20y, 30y

Adjustable Rate Terms

  • 10/6, 7/6, 5/6

Best for: Digital experience & down-payment assistance

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4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Guaranteed Rate does a great job with ease of usability, offering comprehensive loan information during your research phase, plus the option to securely upload and digitally sign loan documents when you're ready to apply. The lender publishes its rates for their different loans online, making it easy to compare options.

Min. Credit Score 580 FHA 600 VA and FHA 620 Conventional

  • 550-680

Min. Down Payment

  • 3%

Key Features

  • Customer-friendly website
  • Technology to ease the process
  • Neighborhood data

Loan Types

  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
  • Interest Only

Fixed Rate Terms

  • 30y, 15y

Adjustable Rate Terms

  • 5/1, 7/1 10/1

Best for: Refinance specialist

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Among the most popular refinance and FHA/VA lenders in the market. Its mello smartloan™ platform eases the refinance process by digitally hooking up to confirm your assets, employment, and income. Its proprietary loan engines quickly determine the loan options that will give applicants the greatest potential cost and/or time savings based on the information it collects.

Min. Credit Score 580 FHA 620 other mortgage products

  • 580 - 620

Min. Down Payment

  • 0%-3.5%

Key Features

  • Digital loan technology
  • Branch network
  • Customer discounts

Loan Types

  • Conventional
  • FHA
  • VA
  • Jumbo

Fixed Rate Terms

  • 30y, 20y, 15y, 10y

Adjustable Rate Terms

  • 10/1, 7/1, 5/1, 3/1

Best for: Fast pre-approval

Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Ally is limited in loan options compared to competitors, but it's all about efficiency and a speedy online experience. Ally states that applicants can get pre-approved in as little as three minutes and loans close up to 10 days faster than the industry average. Applicants with credit scores as low as 500 can qualify for a FHA loan with a 10% down payment.

Min. Credit Score 620 Conventional 700 Jumbo

  • 500-700

Min. Down Payment

  • 3%

Key Features

  • Fast pre-approval
  • Easy loan option comparison
  • Fully online application
  • Loans for first-time buyers

Loan Types

  • Conventional
  • Jumbo
  • Interest Only

Fixed Rate Terms

  • 15y, 20y, 30y

Adjustable Rate Terms

  • 5/6, 7/6, 10/6

Best for: Diverse loan offerings and relationship discounts

Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Bottom Line

Bank of America is one of the largest banks in the U.S., offering a wide variety of financial products in addition to its mortgages. Few lenders can match the lineup of loan products and terms. Bank of America offers a Preferred Rewards program for borrowers who have bank accounts at the bank and investment accounts at Merrill. Borrowers can qualify for an origination fee or interest rate reduction based on their eligible tier at the time of application.

Min. Credit Score 620 FHA 620 Other mortgage products 640 Affordable Loan Solution® 680 Jumbo Loans

  • 620

Min. Down Payment 0% VA loans 3.5% FHA 3% Conventional loans, Affordable Loan Solution® mortgage, Freddie Mac Home Possible® mortgage 5% Other loans

  • 0%-3%

Key Features

  • Wide range of financial products
  • Preferred Rewards program
  • Ability to apply entirely online
  • No PMI offering
  • Loans up to $5 million

Loan Types

  • Conventional
  • FHA
  • VA
  • Jumbo

Fixed Rate Terms

  • 30y, 20y, 15y

Adjustable Rate Terms

  • 10/6, 7/6, 5/6

Best for: Diverse options and homebuyers building credit

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

New American Funding is one of the largest privately owned direct mortgage lenders in the country. The lender offers competitive rates and a wide variety of loans and customizable loan terms. The lender also has a highly efficient lending process that allows for quicker closing times. What's more, New American can be a good solution for people building credit and wanting a good mortgage. It focuses on lending to underserved communities.

Min. Credit Score 580 FHA 620 other mortgage products

  • 580 - 620

Min. Down Payment 0%-3.5% (FHA and VA loans) 3% (conventional loans)

  • 0% - 3.5%

Key Features

  • Fast service
  • One of the top lenders to Hispanic and Black borrowers.
  • Offer customizable loans, including home addition loans
  • High customer satisfaction, A+ BBB rating

Loan Types

  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo
  • Interest Only
  • Reverse

Fixed Rate Terms

  • Customizable (8 - 30 years)

Adjustable Rate Terms

  • 10/1, 7/1, 5/1

How to compare online mortgages

First, make a short list of online mortgage lenders (let's say three to five) that meet your needs. Then, apply for pre-qualification or pre-approval with each. This will allow you to get an estimated rate based on your financial situation.

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Pre-qualification vs. pre-approval

Pre-qualification and pre-approval both allow you to get a customized estimate from a mortgage lender.

  • Pre-qualification is easy and won't hurt your credit score, but only provides a ballpark estimate.
  • Pre-approval will be more accurate to your situation, but will lower your credit score a little and takes more effort.

Getting either pre-qualified or pre-approved -- whichever you're comfortable with -- is an important step to comparing mortgage lenders.

If you're applying for a $400,000 mortgage, the difference between 6.5% and 6.75% interest rates translates to almost $24,000 in interest savings over a 30-year fixed-rate loan term when adding up your monthly mortgage payments. Comparing pre-qualification or pre-approval offers is a good way to catch these savings before you commit to a loan.

For more information, see our guide: How to choose a mortgage lender

How to get an online mortgage

The online mortgage process depends on the bank or lender.

Some lenders allow you to complete the entire home loan process online from start to finish. (Note: Due to notary requirements, closings generally still take place in person, although a lender might send someone to your home instead of making you go anywhere.)

Other lenders might allow you to check your mortgage rates online and upload documentation, but might require you to speak with a loan officer by phone before your application can be processed.

Whatever the level of online services available, an online mortgage loan follows the same basic steps in most cases. In general, here are the steps you may encounter.

1. Check your interest rates

This is typically referred to as a prequalification, and it involves your bank or lender performing a soft credit check to verify your credit score. This does not include verifying income, employment, or assets. Typically, you can fill out a lender's prequalification form in a matter of minutes. Provided you have the lender's minimum credit score or higher, you'll then be able to see the loan products you qualify for.

2. Decide what type of mortgage loan you want

Are you looking for 15 years, 30 years, or another length? Conventional, FHA loan, VA? Select the type of mortgage loan that fits your needs and formally apply.

3. Submit documentation

You'll likely be able to do this entirely online. Many lenders will allow you to directly link to your bank accounts and other sources to make it as easy as possible.

4. Wait for verification

After you submit your documentation to your mortgage company, the lender's underwriting department will verify it. Once your documentation is verified, you'll be cleared to close.

5. Sign documents and schedule closing

Schedule your closing time and date and sign your loan documents. This will likely need to take place in person, but many online lenders will send a notary to you, so you won't have to go anywhere.

It's also worth noting that if your mortgage is a refinance loan, you'll have the added step of scheduling an appraisal of your home to confirm its value.

This happens with a purchase mortgage as well, but it's more of a behind-the-scenes step (as opposed to an appraiser coming to the home you're living in when refinancing).

Pros and cons of online mortgage lenders

Like most things in life, using online mortgage lenders has pros and cons. Here are a few things to consider:

Pros

  • Convenience
  • Efficiency
  • Loans may close faster
  • The ability to close long distance

Cons

  • Difficult to receive in-person help from a mortgage broker
  • May not be the best experience for people who are not tech-savvy
  • Might not be accessible to those without a steady internet connection

What is an online mortgage lender?

Throughout most of modern history, if you applied for a mortgage, you'd have to physically drive to a lender's office or to a bank branch. The process could be a very time-consuming experience, to put it mildly.

The lender would give you an application packet, which you'd have to fill out and return before your loan could enter processing. You'd then be given a list of necessary documents (tax returns, for example), and have to physically get them to your lender's office. Along the way, if anything needed to be modified, you'd probably have to make another trip to sign paperwork. In all, it wasn't uncommon for a home buyer to physically visit their lender's office 10 or more times -- I made at least this many visits when I bought my first house in 2011.

An online mortgage lender aims to simplify the mortgage process by allowing people to complete the application online. Home buyers can check rates, submit an application, sign documents, and upload documents without leaving their home. And many online mortgage lenders pride themselves on closing loans in less time than the typical office-based lender or bank.

Research: If you prefer a big lender, check out The Ascent's research piece on the largest mortgage providers.

FAQs

  • You can get the same mortgage loan products online that you could get through a traditional lender. This includes conventional mortgages, jumbo loans, VA loans, FHA mortgage loans, and USDA loans, just to name a few.

  • There are several steps you can take. First, check the lender's profile on the Better Business Bureau (BBB) and see if you can find some customer reviews (if you can't, it's a big red flag). In addition, the Nationwide Mortgage Licensing System & Registry (NMLS) has a database of licensed mortgage brokers, where you can find information about licenses and disciplinary action against them.

  • Usually. They generally have less overhead, such as fewer office spaces and administrative employees. Their other operating costs are generally cheaper, so online mortgage lenders often pass the savings to the consumer. These savings can look like lower fees and/or more competitive rate offers when compared with traditional financial institutions.

  • The application process depends on the lender. But generally, you'll fill out a prequalification form, the lender will perform a soft credit check, and you'll be shown your loan offers. If you choose to proceed, you'll formally apply. Most online lenders let you upload all needed documentation directly through their websites.

Our Mortgages Experts