9 Best Mortgage Loans in 2023

Mortgages are not all made equal. Fees may be higher and closing times may be longer depending on the lender. While some lenders prioritize a quick preapproval procedure, others might give veterans or current clients discounts.

We examined dozens of lenders to create this thorough list of the 9 Best Mortgage Loans for Borrowers since these aspects are crucial when choosing a lender.

We considered four primary factors: the borrower’s ability to obtain a loan, loan options, affordability, and funding speed. Whether you’re looking to buy a home or are unsure if 2023 would be a suitable year to refinance an existing mortgage, our objective is to simplify mortgage comparison shopping.

1. Summary

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   NBKC: Best for overall mortgage Loans experience

Minimum credit score: 620

Mortgage rates: Not available.

Why we choose it: Borrowers can prequalify and preapprove for a mortgage online through NBKC Bank. To be prequalified, you must give basic personal information, such as your employment history. You must also include information regarding the home’s kind, price, down payment, and loan amount. If you give the necessary details, you can receive prequalification the same day and preapproval within 24 hours.

Pros

• Provides government-backed loans and certain uncommon products, like mortgages specifically tailored for pilots and building loans.
• According to the most recent federal data, it offers cheaper rates and fees than other lenders.
• Provides estimations of fees and customizable prices without requesting contact information.

Cons

• The Kansas City metro area is the only location for HELOCs and construction-to-permanent loans.

 

2. Guaranteed Rate: Best for FHA loans

Minimum credit score: 620

Mortgage rates: Lower than the national average

Why we choose it: Mortgage customers should anticipate standard costs and attractive interest rates slightly below the national average. Additionally, borrowers can get prequalified online within 15 minutes and receive a preapproval letter within 24 to 48 hours. Guaranteed Rate will not charge you any loan costs if you are a VA borrower (or refinancing a VA mortgage).

Pros

• In some circumstances, alternative credit information, like electricity and rent payments, is considered.
• Works in each of the 50 states
• Affordable interest rates
• VA loan borrowers pay no lender fees

Cons

• Preapproval times for certain other lenders are quicker.

 

3. Carrington Mortgage Services: Best for low credit score borrowers

Minimum credit score: 500

Mortgage rates: Not available

Why we choose it: With Carrington Flexible, borrowers with credit scores as low as 500, credit difficulties like a recent bankruptcy, or problems proving their income can get assistance. It permits cash-outs of up to $250,000 and loans of up to $1.5 million.

Pros

• Multiple low-down-payment financing schemes are available.
• Credit information, such as bank statements, may be taken into account.
• You can view customized home purchase rates and apply online.

Cons

• The Home equity lines of credit are not available.
• Recent federal data indicate that lender fees are on the higher side.

4. Chase: Best Lender for relationship discounts 

Minimum credit score: 620

Mortgage rates: Less than the national average

Why we choose it: Due to its affordable interest rates, loan programs for applicants with lower down payments, and very quick closing times, Chase is one of the best mortgage loans. For qualified current Chase clients, Chase also provides relationship savings through decreased processing costs and lower rates.

Pros

• Low-down payment loans are available
• Flexible credit and income requirements for some loans
• Existing customers and borrowers who complete a loan education course receive Discounts.
• If the closing date is missed, Borrowers will receive $2,500 through the Chase Closing Guarantee.

Cons

• Home Lending Advisors are not available in Hawaii or Alaska.
•  Chase does not offer home equity loans, and new HELOC applications are suspended.
• The lender does not offer USDA loans.

 

5. Flagstar Bank: Best Lender for new home construction mortgages

Minimum credit score: 680

Mortgage rates: Less than the national average

Why we choose it: Conventional, jumbo, construction and government-backed loans are available online through Flagstar Bank and at its branch locations in Indiana, Michigan, Ohio, and Wisconsin. For some of its loans, the lender provides minimal minimum credit score criteria, which is advantageous for those applying for their first house mortgage or working to rebuild their credit.

Pros

• Fast preapproval times.
• Low minimum credit score criteria.
• Online and in-person service options.
• A variety of discount schemes.
• Extensive digital assistance for existing clients,

Cons

• Does not provide renovation loans.

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6. Mr. Cooper: Best Mortgage App for Borrowers 

Minimum credit score: 620

Mortgage rates: Lower than the national average

Why we choose it: One of the biggest nonbank mortgage lenders in the nation is Mr. Cooper. Mr. Cooper, a Dallas-based company that operates in all 50 states, provides the usual range of mortgage products, including conventional, jumbo, FHA, and VA loans. Once the loan is secured, Mr. Cooper provides customers an improved digital experience through its dashboard. Customers can control their overall financial well-being as well as their mortgage with the use of its Home Intelligence smartphone app.

Pros

• Low minimum credit score criteria.
• A range of discount options is available.
• A wealth of digital resources for existing clients.

Cons

• The lender doesn’t provide USDA loans
• The lender doesn’t provide home equity loans or HELOCs

7. PNC Bank: Best Lender for medical professionals

Minimum credit score: 620

Mortgage rates: Lesser than the national average

Why we choose it: PNC Bank offers a variety of mortgage products, including speciality loans for borrowers with low and moderate incomes, and is present in all 50 states. PNC offers a cutting-edge online service called Home Insight that delves deeply into home buying. It lets users calculate their monthly mortgage payments and begin house hunting with real-time rate estimates and financing options.

Pros

• Low minimum credit score criteria
• Fast preapproval time
• Online and in-person service options
• Many discount programs are available

Extensive digital support for existing customers.

 Cons

• It does not provide renovation loans

 

8. Bank of America: Best Big Bank for Mortgage Lenders

Minimum credit score: 620

Mortgage rates: Lesser than the national average

Why we choose it: Bank of America stands out as one of the best mortgage loans with a modest down payment that requires only 3% and doesn’t require mortgage insurance. In addition to its online mortgage choices, including the Bank of America Digital Mortgage Experience, Bank of America provides both for borrowers who want the flexibility of applying online or in person. There are 4,300 banking locations in the United States.

Pros

• You can be eligible for a no-PMI, low-down payment mortgage
• Alternative credit data, such as rent payments and utility are considered.
• Borrowers may apply online or in person.
• The bank offers many mortgage discount programs

cons

• The lender doesn’t provide USDA loans
• A pre-approval letter takes up to 10 days to receive.

 

9. Alliant Credit Union: Best for adjustable-rate mortgages

Minimum credit score: Not disclosed.

Mortgage rates: Not published

Why we choose it: One of the best mortgage loans for adjustable-rate mortgages is Alliant Credit Union. It allows you to compare rates and apply online, and it provides a variety of conventional purchase and refinances alternatives.

Pros

• Low or no-down-payment options with no mortgage insurance.
• It offers a home equity line of credit or HELOC.
• Mortgages are available for non-warrantable condominiums.

Cons 

• Doesn’t provide government-backed mortgages, like FHA or VA loans.
• According to the latest federal data, Mortgage origination fees are high.