August 2023’s Top Mortgage Lenders

August 2023's Top Mortgage Lenders

The Best Mortgage Lenders of 2023

The home-buying process can be overwhelming, especially when it comes to finding the right mortgage lender. With so many options available, it can be challenging to know which lender is the best fit for your needs. That’s why we’ve put together a list of the best mortgage lenders in 2023. Our selection is based on factors such as affordability, variety of mortgage types, customer satisfaction, and special features.

Northpointe Bank Home Lending: Best Overall

Northpointe Bank Home Lending is our top pick for the best overall mortgage lender in 2023. They offer a wide variety of mortgage options, including specialty loans that allow for 0% down payments and accommodate recent credit events. With an A+ rating from the Better Business Bureau (BBB), Northpointe Bank is known for its affordability and excellent customer reviews. Whether you’re a first-time homebuyer or looking to refinance, their online platform makes the application process quick and easy.

Rocket Mortgage: Best for Customer Service

When it comes to customer service, Rocket Mortgage stands out from the crowd. They ranked as the top lender for customer satisfaction in J.D. Power’s 2022 US Mortgage Origination Satisfaction Study. Their easy online application process and responsive loan officers make it a breeze to get the support you need throughout the home-buying process. Rocket Mortgage offers a range of mortgage terms, including shorter options as short as eight years.

Navy Federal Credit Union Mortgage: Best Credit Union

For military-affiliated homebuyers, Navy Federal Credit Union Mortgage is our top choice. They are known for being friendly to borrowers with low credit scores and little money for a down payment. Navy Federal offers conventional mortgages, including their Homebuyers Choice mortgage, which requires no down payment and no mortgage insurance. Although they didn’t rank in J.D. Power’s annual study due to certain criteria, they received a high score in customer service.

Veterans United Home Loans: Best for Veterans

Veterans United Home Loans specializes in VA loans and provides excellent options for veterans. They have a very high score in customer service, although they did not qualify to rank in J.D. Power’s study. VA loans are known for their benefits, including zero down payment and no mortgage insurance. Veterans United Home Loans has an A+ rating from the BBB and is a trusted choice for veterans looking to purchase a home.

Fairway Independent Mortgage: Best for Renovation Loans

If you’re in the market for a fixer-upper, Fairway Independent Mortgage is the lender for you. They offer both conventional renovation loans and FHA 203(k) rehabilitation mortgages, giving you a range of options to finance your home improvements. Fairway Independent Mortgage stands out for its variety of home loan types and digital closing option, allowing for a quick and convenient closing experience. They rank above average in J.D. Power’s annual study and have an A+ rating from the BBB.

Guild Mortgage: Best for Variety of Options

Guild Mortgage is our top choice for borrowers looking for a wide range of mortgage options. They offer down payment assistance programs and accept non-traditional credit from borrowers who have no credit score. Guild Mortgage has a hybrid digital closing option, combining convenience with personalized service. They currently have an A+ rating from the BBB and ranked number one in J.D. Power’s 2021 customer satisfaction study.

New American Funding: Best for Non-Traditional Credit

For borrowers with non-traditional credit histories, New American Funding is an excellent choice. They offer unique mortgage options, including their I CAN mortgage, which allows you to customize your mortgage term length from eight to 30 years. New American Funding accepts non-traditional credit, such as utility bills and rent payments, in place of a traditional credit score. They have an A- rating from the BBB and cater to a wide range of borrower needs.

NBKC Bank Mortgage: Best for a Simple, Online Process

If you value online convenience and a simple application process, NBKC Bank Mortgage is the lender for you. They offer a user-friendly rate calculator that allows you to get a customized mortgage rate. The entire application process can be completed online, making it convenient for busy borrowers. With an A+ rating from the BBB, NBKC Bank Mortgage is a reliable choice for borrowers with good credit scores.

Bank of America Mortgage: Best for Down Payment Assistance

Bank of America Mortgage is our top pick for borrowers seeking down payment assistance. They offer up to $7,500 in closing cost assistance and up to $10,000 in down payment assistance. Bank of America also provides a discount on the origination fee for existing account holders. They have an A+ rating from the BBB and ranked above average in J.D. Power’s 2022 study.

Carrington Mortgage Services: Best for Low Credit Scores

If you have a low credit score, Carrington Mortgage Services is a worthwhile option. They specialize in government-backed mortgages with scores as low as 500. Carrington Mortgage Services also provides flexible credit requirements, including mortgages for borrowers with recent negative credit events. They have a B- rating from the BBB and are dedicated to helping borrowers with low credit scores achieve homeownership.

Chase Mortgage: Best for Low-Income Borrowers

For cash-strapped first-time homebuyers, Chase Mortgage is an excellent choice. They offer the Chase DreaMaker mortgage, which requires a minimum down payment of just 3% and has flexible credit guidelines. Their Homebuyer Grant program provides additional financial support to borrowers in low-income or majority-Black areas. Chase Mortgage has an A+ rating from the BBB and ranks second in J.D. Power’s Primary Mortgage Origination Satisfaction Study.

Truist Home Mortgage: Best for Affordable Mortgage Options

Truist Home Mortgage offers a range of affordable mortgage options to both first-time and subsequent homebuyers. Their Community Homeownership Incentive Program provides up to 100% financing in certain areas and 97% financing everywhere else with no private mortgage insurance (PMI) requirement. Truist Home Mortgage is one of our highly-rated lenders and has an A+ rating from the BBB. They scored above the industry average in J.D. Power’s 2022 Satisfaction Study.

Third Federal Savings and Loan Mortgage: Best for Low Closing Costs

If you’re looking to keep your out-of-pocket costs low, Third Federal Savings and Loan Mortgage is the lender for you. They offer a Low Cost Mortgage option where you pay only $295 in closing costs, although the rate may be slightly higher with this option. Third Federal Savings and Loan Mortgage provide a range of other benefits, including low down payment mortgages with no PMI and generous down payment assistance offerings. They have an A- rating from the BBB and are known for their unique benefits.

Other Mortgage Lenders That Didn’t Make the Cut and Why

While we have highlighted the top mortgage lenders for 2023, there are several others worth considering. USAA is a good option for VA loans but not other mortgage types. Regions has limited branch locations, and Citibank has received an F from the BBB. Better has a user-friendly online platform but limited loan options. SoFi is an excellent choice for conventional mortgages but not FHA, USDA, or VA loans. Paramount Bank has an online presence but not as many mortgage types as our top picks. Pennymac has various loan options but ranks low on customer satisfaction. Flagstar Bank has received an A+ from the BBB but ranks low in customer satisfaction. Mr. Cooper offers several types of loans but ranks low for customer satisfaction. Alliant Credit Union is a good option for conventional mortgages and HELOCs, but not FHA, USDA, or VA mortgages. Caliber Home Loans has lower customer satisfaction ratings, and Loan Depot is not accredited by the BBB. Guaranteed Rate has an A- rating from the BBB, and Freedom Mortgage ranks low in customer satisfaction. Wells Fargo has faced scandals and has received an F in trustworthiness from the BBB. US Bank has good options for home equity loans and HELOCs but ranked low on customer satisfaction. PNC Bank has a range of mortgage types but lacks standout features.

What Questions Should I Ask Myself?

Before you begin the mortgage process, it’s essential to ask yourself some critical questions to ensure you’re financially prepared. Consider your budget and determine how much mortgage you can afford based on your gross monthly income. Evaluate your credit readiness, as a higher credit score can lead to better rates and terms. Stay informed about current mortgage rates to understand if the rates you’re being offered are competitive.

What Questions Should I Ask My Lender?

As you search for a mortgage lender, be sure to ask them important questions to ensure they meet your needs. Inquire about the types of mortgages they offer and determine which one is suitable for your situation. Discuss any fees associated with the mortgage process, such as origination or application fees. Ask about the potential sale of your loan or servicing rights if the lender sells them to another entity.

These best mortgage lenders of 2023 have been carefully selected based on their affordability, variety of loan options, customer satisfaction, and special features. As you embark on your homebuying journey, consider these top lenders to find the one that best suits your needs.