ElitePersonalFinance found the Best Mortgage Rates and Lenders of November 2025

When choosing the right mortgage lender, getting it wrong by a few percentage points could mean thousands of dollars lost over the life of your loan. With interest rates fluctuating and numerous lending options available, today’s borrowers are focused on making the best choice.

Today, there’s no shortage of lenders offering favorable rates, improved terms, and specialized loan programs that can accommodate everyone from first-time home buyers to rural investors.

Let ElitePersonalFinance walk you through everything there is to know about mortgage lenders and rates in October 2025, offering top recommended options, the difference between fixed and variable mortgage rates, when it makes sense to refinance, and everything in between. Let’s help you navigate the possibilities and relieve the stress with one of the most significant financial decisions you will ever make.

Why Should You Trust ElitePersonalFinance?

At ElitePersonalFinance, we understand that choosing the right mortgage lender can be daunting and challenging. A single percentage point can cost you thousands of dollars over the life of the loan. That’s why we carefully analyze top options from legacy banks like Wells Fargo, Bank of America, and Chase, as well as established brands like Rocket Mortgage, and other reputable online lenders, to ensure you have access to the most competitive offers in the market.

Several factors are expected to influence mortgage rates in October 2025 and beyond, including inflation, Federal Reserve policies, and housing demand. Whether it’s your first home or refinancing an existing mortgage, understanding how mortgage rates operate and the impact of shaving a few percentage points off can make all the difference.

Keep reading to learn more about the best mortgage lenders and rates, how mortgage rates are calculated, pros/cons of using mortgage lenders, and how to apply for a mortgage smartly so that you can make the best decisions for yourself and your family.

SuperMoney

SuperMoney is an online marketplace that allows you to compare multiple quotes from direct lenders across various types of mortgage products, including conventional loans, FHA, VA, USDA, jumbo mortgages, and refinancing options.

Another thing we enjoy about SuperMoney is its extensive research section, which covers a wide range of mortgage topics, from “how much can you afford” to “how are mortgage rates calculated.”

One of the best features of SuperMoney is its helpful side-by-side reviews of lenders, which include estimated payments, rates, terms, and transparent customer ratings. Were you looking to purchase your first home, upgrade your existing one, or refinance your mortgage, SuperMoney is a great place to be.

What We Like:

• Access to dozens of lenders and loan types
• Helpful side-by-side comparisons
• Transparent lender customer rating
• Easy pre-qualification tools; complete in less than 5 minutes
• User-friendly website

What We Don’t Like:

• Not a direct lender
• Each lender decides loan terms;not all are equal
• No in-person customer support
• Not all lenders have the same eligibility requirements/fee structure

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statements
• Apply online through the SuperMoney portal to view offers

Terms: SuperMoney is an aggregator/comparison site that helps you evaluate mortgage lender offers from all types of mortgage providers, including banks and credit unions. It does not issue any loans directly and does not offer guaranteed loan approval. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type. Borrowers should review all official lender disclosures and terms before signing any mortgage agreement from participating SuperMoney mortgage lenders.

Tomo Mortgage

Promising “low rates, no gotchas” on its website, Tomo Mortgage has developed a strong reputation for its customer service. It specializes in various types of refinancing programs that promise 98% on-time closing and an average of $4,000 in savings for typical buyers at closing.

What sets Tomo apart is its “no lender fees” policy, meaning borrowers do not pay any origination, underwriting, or processing fees. On the website, borrowers are matched with experienced and dedicated loan officers who guide them through every step of the process. No wonder it was awarded as one of the “Best Online Mortgage Lenders” by Bankrate.

Overall, Tomo Mortgage is an excellent choice for any homeowner seeking a simplified refinancing program, supported by competent digital tools. Seamless, transparent refinancing experience

powered by modern technology—with the peace of mind that comes from an award-winning lender.

What We Like:

• No origination, underwriting, or processing fees
• 100% online application
• Near 5-star rating on Zillow (70+ customer reviews)
• Awarded one of the “Best Online Mortgage Lenders” (2024) by Bankrate

What We Don’t Like:

• No FHA or VA options
• Not available in all states
• No in-person customer support

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statements
• Apply online through the Tomo Mortgage website

Terms: Tomo Mortgage is a digital mortgage platform. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any mortgage agreement from participating Tomo mortgage lenders.

Simplist

Simplist is one of the best mortgage marketplaces around. It allows borrowers to search for more than 50,000 different lending options, based on whether they’re purchasing or refinancing. For example, some of the major players listed on this website include Rocket Mortgage, Axos Bank, AmeriSave, LoanDepot, and Caliber Home Loans.

With Simplist, you can get preapproval in as little as 5 minutes by simply answering a few questions on the website. You’ll be asked to select your loan, e.g., a 30-year fixed. The entire process is made easier with its intuitive dashboard, where you can order your appraisal, upload documentation, and lock in your rate in under 2 days.

Whether you’re refinancing a conventional loan or exploring jumbo or FHA options, Simplist is one of the better mortgage lending places out there.

What We Like:

• Top 1% certified partner by UWM (2020)
• Top mortgage broker 2021 award by Rocket
• “Best Mortgage Refinance Companies” by Forbes (2024)
• Multiple lenders in a single application
• Transparent terms and competitive offers

What We Don’t Like:

• No in-person support
• Not as many niche loan programs as competitors
• Customer experience depends on the partner lender

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statements
• Apply online through the Simplist website

Terms: Simplist is an online mortgage marketplace. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any mortgage agreement from participating Simplist mortgage lenders.

NextDoorLending

With more than 200 lenders on its platform, it helps borrowers instantly compare rates and loan products. Please note that it is not an actual bank, but rather a marketplace that matches you with competitive offers based on your personal profile. From conventional mortgages, FHA loans, VA loans, to USDA loans and beyond, it’s all here.

The site qualifies buyers based on an extensive questionnaire that factors in various aspects, including the stage of the loan process (e.g., buying in 2-6 months), state of residence, type of property, estimated purchase price, and more. From there, it offers personalized recommendations.

One of the best features of NextDoorLending is its personalized loan recommendations, eliminating the need to submit multiple applications. As of this writing, it has garnered over a thousand Google reviews, boasting an average 5-star rating, with positive feedback on everything from highly knowledgeable loan processors to favorable terms.

What We Like:

• Access to 200+ lenders
• Full suite of loan programs including FHA, VA, USDA, and jumbo
• Personalized consultation by dedicated advisors
• Digitally focused application and preapproval process

What We Don’t Like:

• Broker fees vary depending on the lender and the loan type
• No in-person customer service

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statement
•  Apply online through the NextDoorLending portal

Terms: NextDoorLending is a mortgage broker. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any NextDoorLending mortgage agreement.

Chase

Arguably the most popular bank in the United States, Chase is one of the most trusted names in the financial industry. It offers a variety of mortgages, including fixed-rate, adjustable-rate, FHA, VA, and jumbo loans. Additionally, it provides an entirely digital process, allowing you to apply, upload all your documents, and track loan progress in real-time, without needing to visit a branch.

Thanks to its established reputation in finance, it has garnered numerous accolades, including “Best Mortgage Lender for Existing Bank Customers” by Bankrate (2024), with consistently high marks from JD Power and Associates in mortgage servicing. Additionally, it offers other financial products that allow existing Chase customers to remain within its ecosystem, such as auto loans and credit cards.

If you’re looking for personalized brand support with strong digital tools, consider Chase for your next mortgage.

What We Like:

• All types of mortgages available, including FHA, VA, and jumbo loans
• Excellent real-time loan tracking
• Awarded “Best Mortgage Lender for Existing Bank Customers” by Bankrate (2024)
• Thousands of ATMs throughout the nation

What We Don’t Like:

• Higher than average closing costs
• Strict eligibility requirements
• Digital features are not as robust as Better.com or Rocket Mortgage

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statements
• Apply online through the Chase website

Terms: Chase offers mortgages through JPMorgan Chase Bank, N.A. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any Chase mortgage agreement.

Wells Fargo

As one of the most established and recognized names in US home lending, Wells Fargo offers a variety of mortgage products, including fixed-rate, adjustable-rate, jumbo, FHA, and VA loans. In 2024, it was awarded “Best Bank for First-Time Homebuyers” by US News & World Report, so you know you’re dealing with a winner.

Another strong aspect of Wells Fargo is its digital tools and in-person customer service. I prefer this option for home buyers who want a hybrid approach with dependable loan management. Plus, like Chase, you’ll be part of the Wells Fargo ecosystem if you are already enrolled in its debit, credit, or any number of other financial products.

All in all, we highly recommend Wells Fargo if you’re looking for a bank with a legacy and prefer face-to-face customer service.

Terms: Wells Fargo offers mortgages through Wells Fargo Bank, N.A.. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any Wells Fargo mortgage agreement.

What We Like:

• All types of mortgages are available, including FHA, VA, and jumbo
• Large branch network
• Awarded “Best Bank for First-Time Homebuyers” by US News & World Report (2024)
• Excellent online loan tracking tools

What We Don’t Like:

• Rates and fees are higher than those of online lenders
• Not the fastest approval process
• Not every branch and region has the same level of customer service

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statements
• Apply online through the Wells Fargo website

Bank of America

Bank of America is one of the country’s most trusted banks for home lending, offering a wide range of mortgage and refinancing options, from fixed-rate and adjustable-rate mortgages to FHA, VA, and jumbo loans.

It highly emphasizes first-time and lower-income home buyers with its Community Affordable Loan solution, which allows borrowers to purchase homes without having to put down a sizable down payment or excessive mortgage insurance. It also assists with closing costs through America’s Home grant program, which provides up to $7,500 in loan credits, as well as up to $10,000 through the Down Payment grant program.

Not to mention, Bank of America has also been awarded “Best Bank for Digital Mortgage Experience” by Bankrate in 2024, a testament to its outstanding customer support and online tools.

What We Like:

• All types of mortgages, e.g., fixed, ARM, FHA, VA, jumbo
• Community Affordable Loan Solution and Down Payment Grant programs for first-time home buyers

What We Don’t Like:

• Online lenders charge lower rates and closing costs
• Eligibility for down payment programs is not available in all regions
• Not the fastest customer service response

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statements
• Apply online through the Bank of America website

Terms: Bank of America offers mortgages through Bank of America, N.A.. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any Bank of America mortgage agreement.

First Federal Bank

If you’re looking for a community-focused bank with a variety of mortgage products, First Federal Bank fits the bill. Like all of our recommendations, it offers a range of mortgage products, including home loans, FHA, VA, USDA, and jumbo mortgages, as well as refinancing options, with a primary focus on Florida, Georgia, and the Carolinas.

One of the best things about First Federal Bank is its dedicated resource section for home buyers (complete with a loan checklist and best practices on home inspections), along with quick access to a dedicated loan officer that provides the inside scoop on everything from pre-qualifying to closing on your home. If you’re looking for a relationship-driven approach with access to top-notch digital tools, then First Federal Bank could be an excellent first option.

Terms: First Federal Bank offers mortgages through its community-based branches. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type, with no guarantee of loan approval. Borrowers should review all official lender disclosures and terms before signing any First Federal Bank mortgage agreement.

What We Like:

• Competitive rates
• Experienced dedicated loan officers
• In-person service available at local branches
• Different types of loans, e.g., government-backed FHA, VA, and USDA loans
• Excellent digital support tools

What We Don’t Like:

• Physical branches are limited to Florida, Georgia, and the Carolinas
• Rates and fees significantly depend on the state

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statements
• Apply online through the First Federal Bank website

Rocket Mortgage

Arguably the most popular digital mortgage brand today, Rocket Mortgage offers a comprehensive package, providing access to a wide range of mortgage products, including traditional, FHA, USDA, and refinancing loans. Its entire application process is done online, with no manual paperwork from preapproval to closing on your home, making it a preferred choice for first-time homebuyers.

One of the best things about Rocket Mortgage is its transparent rate offers and an easy-to-use digital platform that allows you to track your mortgage progress daily and upload all your supporting documentation. Additionally, it provides dedicated support teams to help you stay on track throughout your mortgage process.

All in all, if you’re looking for a digital-first approach, then Rocket Mortgage is a highly recommended option.

What We Like:

• Highly recognized name
• Wide variety of loans from 15 years to adjustable rate
• Entirely digital process from preapproval to closing
• Transparent terms on the website
• RentRewards offers 10% of your rent to use towards a home purchase

What We Don’t Like:

• No in-person consultations
• Lenders vary depending on rates and terms

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statements
• Apply online through the Rocket Mortgage website

Terms: Rocket Mortgage is an online lender. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type. Borrowers should review all official lender disclosures and terms before signing any mortgage agreement from Rocket Mortgage.

AmeriSave

Founded in 2002, AmeriSave Mortgage Corporation offers a wide range of loans, including conventional, FHA, VA, USDA, and jumbo loans. Like Rocket Mortgage, its offers competitive rates and pre-qualification in minutes, allowing you to check out personalized rate quotes on one screen, equally working well for first-time home buyers and experienced homeowners.

Additionally, AmeriSave holds an A+ rating from the Better Business Bureau, a testament to its transparency and adherence to forward-thinking best practices. Additionally, it boasts an average 4.5-star rating across over 13,000 reviews on Trustpilot, one of the leading third-party review sites. Other accolades include 5-star lender status from Zillow, a testament to its reputation and trust in the mortgage community.

What We Like:

• Wide variety of mortgage products
• Easy-to-use online application
• ~13K 4.5+ average star rating on Trustpilot
• Extensive Homeownership Insights resource blog

What We Don’t Like:

• No in-person support
• Closing costs are higher than average
• Rate quotes depend on your credit score and other qualifying criteria
• Not the quickest customer support times

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Proof of income and employment history
• Preapproval documents, e.g., credit score and bank statements
• Apply online through the Amerisave website

Terms: AmeriSave Mortgage Corporation offers mortgage products. Actual rates and loan approval depend on several criteria, including your income, credit score, debt-to-income ratio, and loan type. Borrowers should review all official lender disclosures and terms before signing any mortgage agreement from Rocket Mortgage.

What Are Mortgage Lenders and How Do They Work?

For starters, common mortgage lenders allow you to borrow funds for the purpose of purchasing a home or refinancing an existing mortgage. They’re responsible for managing all aspects of the application, from providing loan estimates to funding the loan at closing. Today, lenders are typically banks that hold the loan, while mortgage companies offer the money for the loans themselves.

Plus, mortgage lenders are responsible for providing you with an initial interest rate and all associated fees, including the underwriting criteria that you must meet. This determines the rate you pay, the down payment, and any required documents that you must provide. Lenders may also service your loan, which involves collecting monthly payments and monitoring your escrow account.

In some cases, servicing rights may be transferred to other lenders after closing.

Lenders usually encompass different types, ranging from traditional banks like Chase and Bank of America to online-only lenders like Rocket Mortgage and Better.com. Additionally, hybrid online fintech lenders are available, such as TOMO Mortgage. Note that this is different from a broker, which can shop your application to multiple wholesale lenders to secure the best pricing, all without the need to fill out numerous applications.

In terms of making money, mortgage lenders earn it in a variety of ways, such as spreading interest on a loan, charging origination fees, and taking advantage of the spread on loans sold into the secondary market.

Are Mortgage Rates Fixed or Variable?

It’s critical to understand the difference between fixed and variable options on a mortgage.

In turn, fixed-rate mortgages mean the same interest rate is kept throughout the life of the loan. In contrast, variable-rate mortgages (also referred to as adjustable-rate mortgages) start with a lower initial rate and then change over time based on macroeconomic conditions. Buyers may take advantage of variable-rate mortgages if they plan on moving within the next several years.

For example, Rocket Mortgage and other lenders offer a 5-year fixed rate, which means you can enjoy the same rate for the first 5 years before annual adjustments. Note adjustable-rate mortgages are an excellent way to save money if you can forecast your future.

Is It Worth Refinancing Your Mortgage in 2025?

Deciding whether or not to refinance your mortgage in 2025 depends on several factors. For example, if you took out your mortgage 5 years ago and your interest rate has dropped, refinancing your loan now could save you thousands of dollars over the life of the loan by reducing your monthly payment. Nowadays, people are switching to a 5.75% refinance over their original 6.5% mortgage through our recommended lenders, potentially saving you as much as $300 per month on a $300,000 loan.

If you want to change your loan term, then refinancing may make sense as well. For example, you may move from a 30-year to a 15-year term, which can increase your monthly payment but lower the amount of interest you pay over time. Luckily, there’s no shortage of programs available, such as Bank of America’s FHA Streamline or VA Interest Rate Reduction Refinance Loans (IRRRL), which are so user-friendly they require minimal documentation.

Remember, always try to understand your break-even point and weigh closing costs against the amount of money you save.

What Are Typical Mortgage Rates Right Now?

As of October 2025, the average 30-year fixed-rate mortgage is roughly 6.33% with some variations depending on the lender and the type of mortgage refinance. For example, Bank of America is currently offering a 6.25% 30-year fixed-rate mortgage for excellent-credit borrowers.

When it comes to 15-year fixed-rate mortgages, expect to pay around 5.5%. Remember, adjustable-rate mortgages have the same lower initial rate for the first 5 years before adjusting based on market activity, so you can expect to make higher payments later.

Always remember that mortgage rates change daily and are subject to change depending on the Federal Reserve’s policies, market conditions, and other underlying factors. That’s why we recommend shopping around for the best refinancing opportunities from at least three direct and online lenders, such as Rocket Mortgage, Wells Fargo, and Better.com. Use a legit comparison site like SuperMoney to narrow down your options.

Pros and Cons of Getting a Mortgage in 2025

With more and more Americans considering homeownership via mortgage, it comes with its upsides and downsides. In an increasingly competitive housing market, interest rates have stabilized, but this doesn’t negate the fact that you need to consider all sides of the coin.

Here are the pros and cons of getting a mortgage in 2025:

Pros

All Types of Loan Products

There are various types of mortgage products available, depending on your specific needs, including FHA, VA, USDA, jumbo, and refinancing options. That’s why we highly recommend aggregators like SuperMoney, which connects borrowers to dozens of lenders offering various mortgage products. For example, first-time homebuyers who limit their payments often opt for an FHA option, whereas jumbo loans are suitable for homes priced at multi-million dollars or more.

In turn, NextDoorLending also collaborates with over 200 lenders to provide personalized recommendations tailored to your property value, state of residence, and other key factors, all without requiring multiple applications.

Of course, you also have traditional banks like Chase and Bank of America.

Digital Tools Available

Now you do not need to be bogged down by paperwork and endless phone calls to close on your mortgage. For example, Rocket Mortgage allows you to upload your documents and track your loan progress in real-time. All steps are completed entirely online, including preapproval.

Additionally, we really appreciate Amerisave’s 5-minute pre-qualification tool, instant rate quotes, and an easy-to-use website that provides side-by-side comparisons of different mortgage lenders.

Transparency with Feedback

Today, it’s very easy to obtain reviews, star ratings, and lender comparisons across all types of lenders. It’s a much better alternative than walking into a branch and taking a banker’s words at face value.

Competitive Rates

Although mortgage rates do fluctuate, competitiveness between different lenders keeps them stabilized. For example, Chase and Wells Fargo offer discounted rates to existing banking customers, with Chase Private Clients enjoying a slight reduction in APR. In turn, Rocket and Amerisave display all rates upfront, allowing you to lock in your rate within 24 hours. As homes increase in value, a 0.5% rate difference could easily save you tens of thousands of dollars over a 15-year or 30-year loan.

Cons

Qualification Can Be Challenging

Do only mortgage lenders have it easier to file for mortgages, or do they require strict eligibility criteria to own a home, such as strong credit scores, proof of income over several years, and employment? The lower your FICO score, the higher your APR eligibility. Plus, if your credit score is in the 580 range, then you’ll only see FHA offers with stricter requirements.

Of all the banks, Chase and Wells Fargo are the most challenging to obtain a mortgage from.

Fees and Closing Costs

Expect to pay anywhere from 2 to 5% of the loan for closing costs, as well as any origination or underwriting fees, unless you are a preferred customer. Remember that fees vary depending on the state of residence, so you need to factor in all of these costs when comparing different rates.

Sometimes it’s better to pay higher rates with lower fees than the other way around.

No In-Person Support With Some Lenders

Rocket Mortgage, Amerisave, and SuperMoney do not offer any physical branches for in-person support. If you prefer to manage your application alongside a loan officer, rather than with a bank like Legacy Bank, First Federal Bank, or Chase, that is preferable.

APRs May Vary

Thanks to ongoing market volatility, the APRs you’re eligible for may fluctuate depending on your credit score and the type of loan. For example, SuperMoney may display an initial rate of 6.2%, which could increase to 6.75% once your credit score is run.

Additionally, keep in mind that every lender has its own fee structure and terms, making it challenging to compare them directly.

Not to mention, many banks are known to offer “as low as” rates, which typically only borrowers with the strongest financial profile qualify for. Always don’t take advertised rates at face value and go through the entire pre-qualification process to learn your final offer.

20-30 Years to Commit

By locking in a mortgage, borrowers commit to making monthly payments for a term of up to 30 years. Any number of life situations can divert attention, such as changes of residence or divorce proceedings. Luckily, there are refinancing opportunities. Be mindful of higher potential closing costs, especially if you plan to move again within the next 5 years.

All in all, mortgages in 2025 are more digital-friendly than ever. This allows you to make instant comparisons between fintech banks and established legacy options, such as Chase, Wells Fargo, and Bank of America. However, there’s no shortage of pre-qualification hurdles and rate variability that can cut into your peace of mind, so we encourage you to comprehensively educate yourself on all upsides and downsides before committing to a mortgage.

How to Choose the Best Mortgage Lender

When it comes to finding the right mortgage lender, understand that none of them operate in the same way as your savings accounts or tax relief firms. Mortgage lenders offer different terms, costs, and levels of service.

Here is a helpful step-by-step guide on how to choose the best mortgage lender:

The first step is to compare lenders across different types of verticals, such as traditional banks, online mortgage providers, and credit unions. Each of them has its own benefits. For example, Rocket Mortgage is an online-first lender that streamlines the entire process from pre-qualification to closing. In turn, legacy banks like Chase and Bank of America are preferable for anyone who prefers in-person service alongside loan advisors and an extensive branch network.

On the other hand, aggregators like SuperMoney enable you to compare lenders side by side, allowing you to see how they differ in terms of rates, closing costs, and numerous other variables, all on one website.

Looking for a relationship-driven approach instead? In that case, you may opt for community credit unions, which are also known for their lower fees.

Gather All Documentation

After viewing, promptly evaluate two or three shortlisted lenders to gather all your supporting documentation together. Mortgage lenders require, but are not limited to, recent pay stubs, proof of assets, a credit score, and W-2s. These documents allow them to evaluate your entire financial profile and your ability to handle long-term debt.

One of the best features of Rocket Mortgage is that all documents can be uploaded digitally, with real-time status updates. In turn, you can expect to submit papers or pay in person at branch visits to local banks and credit unions, which offer the extra benefit of face-to-face interactions, or you may be in a better position to negotiate rates and terms.

Complete an Application

After you’ve gathered all your supporting argumentation, it’s time to start your application. It’s an extensive process that requires entering your personal information, uploading all necessary files, and agreeing to a series of disclosures, which usually takes less than an hour.

During this process, you will also be asked about your desired loan amount, type of property, and loan term (e.g., 15 or 30 years). This information will enable lenders to assess your eligibility and the rates for which you are qualified.

Note that at banks and credit unions, finalizing applications typically involves an in-person visit (particularly if a membership enrollment process is involved). Expect slightly slower approval times, although you will have in-person support from a loan officer.

Whether you go digital or in-branch, the underwriting process begins once you’ve completed an application.

Review Loan Offers

Once you’ve completed an application, you can expect to receive loan estimates that break down all your cost calculations, including monthly payments, interest rate, and closing costs. For example, one lender may offer a 6.4% APR with lower closing fees, whereas another may quote 0.2% points lower with $13,000 in upfront costs, making the first option a no-brainer.

Luckily, you can use the SuperMoney side-by-side mortgage comparison tool to simplify the process.

Look Into Feedback

When evaluating different mortgage standards, we recommend checking for a Zillow five-star lender status, favorable Better Business Bureau dispute resolution statistics, and real-world customer reviews to understand where lenders shine and where they can improve. Likewise, you can learn about the percentage of closing delays, extra costs, and other new details that can make all the difference when choosing between lender A and lender B.

Lock in Your Rate

Once you’ve chosen the right lender, it’s time to lock in your mortgage rate. Keep in mind that rate volumes fluctuate by the hour, depending on microeconomic conditions. For example, you lock in a 6.25% rate today. In that case, you may need to accept a 6.5% rate tomorrow, which could result in tens of dollars every month and thousands of dollars in interest over a 20-year or 30-year mortgage.

One of the best things about working with the right mortgage lenders is that you have a window of 30 to 60 days to close your loan with the rate locked in. All of our recommended options allow several ways to lock in your rate (e.g., Rocket Mortgage mobile app) or in-person visits to Chase and Wells Fargo.

All in all, locking in your rate helps protect you from market fluctuations and allows you to predict your monthly budget more accurately.

Close your Mortgage

After locking in the rate on your loan, it’s time to sign off on the final paperwork and pay all closing costs. Expect to pay anywhere from 2% to 5% of the loan amount, which means you can pay as much as $15,000 in closing costs on a $300,000 loan. Closing costs include various fees, such as appraisal, attorney, and title fees.

What Are the Benefits of Comparing Mortgage Rates?

Here are the benefits of comparing mortgage rates:

Save Thousands

For the simple fact that you can save thousands of dollars over the life of the loan, comparing mortgage rates will allow you to do that. For example, if you have a 6.75% offer on a $400,000 mortgage versus a 6.25% offer, then you’ll be saving roughly $46,000 in total interest in the long run.

That’s why we recommend using platforms like Rocket Mortgage, Better.com, and NBKC Bank, which excel at providing side-by-side comparisons so you can gather Loan Estimates and make the best offer.

Match Lenders to Your Situations

Understanding that you have a different financial profile than others, it makes sense to compare lenders that match your profile. For example, first-time home buyers may work well with one type of mortgage, while interested and retired military personnel are better off taking advantage of VA loans. By shopping around, you’ll find lenders that not only offer the lowest rates but also understand what you’re trying to achieve.

Ability to Negotiate

By comparing mortgage rates, you have an advantage when negotiating and asking one lender to match or beat another lender’s rate. Nowadays, many lenders offer rate matching or free credits if you have a verifiable competing offer elsewhere. By simply shaving off a few basis points from your interest rate, you can save thousands of dollars over the life of your loan.

Plus, there are other mortgage conditions you may negotiate, such as the appraisal waiver or the writing fees. Even rate lock extensions can be extended at no additional charge once you’ve proven yourself as a serious buyer.

True Cost of Borrowing

As you’re comparing your mortgage rates, don’t worry about the interest rate alone. The Annual Percentage Rate (APR) offers a much better picture of what you can expect to pay in full, including fees and interest. Even with two loans at the same rates, they can have drastically different APRs that better represent total incentives, so using side-by-side comparison websites like SuperMoney makes it easier to compare them easily.

Protection from Hidden Fees

When you’re evaluating different mortgage offers, you’re more likely to run into prepayment penalties, balloon payments, or any number of hidden costs. That’s why we recommend using legit lenders like Rocket Mortgage, Better.com, or NBKC Bank, which clearly specify all payment terms up front.

How to Apply for a Mortgage Step by Step

Here’s a step-by-step guide on how to apply for a mortgage:

Take a Hard Look at Your Finances

The first thing you should do before applying for any mortgages is to assess your financial situation.

Remember that mortgage lenders consider several factors, such as your debt-to-income ratio, which is the ratio of your total monthly debt to your gross monthly income. For example, if you earn $7,000 a month and have $3,000 in total debt that goes towards mortgages, auto loans, and the like, you have a debt-to-income ratio of about 40%. Try to aim for a DTI no higher than 40%.

Another thing lenders are likely to consider is your cash reserves. You should have at least two to three months’ worth of funds towards housing in case of job loss or other unexpected events that affect your ability to earn income steadily.

Check Credit Score

At the same time you’re evaluating your financial situation, look to check and improve your credit score. For example, Rocket Mortgage ignores borrowers with FICO scores below 740, while larger players like Bank of America may approve FHA or VA loans for borrowers with scores as low as 580.

Please take advantage of free credit reports from Experian, Equifax, and TransUnion, and review them carefully to identify any errors. Dispute them with a 45-day resolution time. Be sure to pay down your revolving balances, avoid new credit inquiries, and set up automatic payments to prevent any derogatory marks on your record.

Choose the Right Mortgage

There are many different types of mortgages, such as conventional, FHA, VA, USDA, and jumbo loans.

Each of them has its own eligibility criteria. For example, government-backed FHA Loans allow you to put as little as a 3.5% down payment, whereas VA loans are limited to veterans and active-duty military personnel. For example, a borrower with a 780 credit score and a 30% down payment might benefit from a Chase fixed-rate loan instead of an FHA loan. Better.com or First-Time Home Buyers: GetHomebuyers should prepare their documentation.

If you want to ensure a smooth application process, then getting your supporting documentation in order is essential. Mortgage lenders like to see a complete view of your income, assets, and liabilities to see if you qualify. Typically, you’ll be asked to provide the last two years of W-2s and tax returns (from the same time frame), recent bank statements, and pay stubs for the previous 30 days.

If you’re self-employed, then you could be expected to deliver 1099s or profit and loss statements.

One of the best things about our digital lenders is that you can submit these documents electronically, which speeds up approval times. However, you may be asked to provide physical copies at legacy banks like Wells Fargo and Bank of America for slightly slower approval times.

Shop Around

Always compare multiple offers when you’re looking for mortgages. Not every lender is the same; rates, fees, and programs vary, so side-by-side comparisons at sites like SuperMoney are a good next step. Always make sure you are looking at identical loan amounts and terms to ensure a genuine apples-to-apples comparison.

Preapproval and Pre-Qualification

Signify that you’re a serious borrower by getting pre-qualified or pre-approved. The qualification doesn’t involve hard credit checks. In contrast, approval does require a full review of your income and assets to ensure you qualify for a specific loan amount.

Two of our recommendations, Rocket Mortgage and Better.com, provide pre-approval letters almost immediately after your documents are uploaded. Like processing documentation, it may take a few days for legacy banks like Wells Fargo or Chase to review all of your documentation. Still, a preapproval letter speeds up the process.

Select a Mortgage

Nowadays, there’s no shortage of mortgages you can take out depending on your financial profile. If you have strong credit and an income, you can benefit from conventional loans, whereas first-time home buyers are better suited to FHA Loans with more manageable down payments. In turn, jumbo loans are available for high-income individuals, as well as USDA loans for rural and suburban land and homes.

Submit Your Application

Once you’ve gathered all of your documentation together, selected your lender, and determined your mortgage type, it’s time to submit your application. Digital lenders allow for digital submission, whereas traditional banks require an in-person meeting and paperwork. Be sure to be accurate with all of your details, as any inaccuracy can slow down the underwriting process and result in a denial of your mortgage loan.

How to Spot Legit Mortgage Lenders and Avoid Scams

Nowadays, there’s no shortage of mortgage lending scams looking to part you with your money. Whether it’s the promise of guaranteed approvals or nonexistent encryption on a third-party website, mortgage scams come in all forms.

Protect yourself with the following tips and tricks on how to spot legit mortgage lenders and avoid scams:

Look at Track Record

One of the ways to voice concerns in Kansas is by checking for lender reviews through Better Business Bureau (BBB), Trustpilot, and your state licensing agency. Look for consistent feedback that highlights the company’s fast processing times and clear points of contact. It’s easier to identify scam websites as they often come with unverifiable addresses or generic email domains that replicate those of legitimate lenders.

Loan Estimates All Day

Legitimate mortgage lenders will provide full federally regulated Loan Estimates (along with Truth in Lending Act (TILA) statements) within three business days after you submit your application. Look out for lenders that do not clearly answer questions about fees, upfront payments, or requests for written documentation. Remember, everything should be put in writing.

Look at their Websites

Today’s legit mortgage lenders have HTTPS encryption (your browser’s padlock symbol), complete legal disclaimers on how your information is used, and all licensing information and privacy policies.

Never get in touch with any mortgage lender through online messaging or non-incorporated platforms. Casual communication channels are a big no-no.

Avoid Marketing Jargon

Oftentimes, scammers are ready to offer you ultra-low rates, no matter what your credit score is. “Instant approval” is a commonly used term. Remember, legit mortgage lenders like Rocket Mortgage and Better.com will continually assess your complete financial profile, including your credit score, debt-to-income ratio, loan-to-value ratio, and property values.

Note, scammers are only interested in collecting your personal data to charge outside vendors. Legit lenders will always make conditional offers after reviewing your entire credit application.

Frequently Asked Questions

What are mortgage rates like right now?

Many factors go into mortgage rates, including Federal Reserve activity and the rate of inflation. As of this writing (October 25), 30-year fixed mortgage rates are in the 6 to 7% range.

How do lenders decide which rate I qualify for?

Many factors determine what rate you qualify for, including the type of loan, credit score, amount of down payment, income, employment history, and other qualifying factors. Conventional, FHA, VA, or jumbo loan. The stronger you are financially, the easier it is to qualify for lower rates.

What’s the difference between the interest rate and APR?

Interest rates are simply the percentage charged on your loan’s principal. In turn, the annual percentage rate factors in the total cost of borrowing, including the interest rate, lender fees, points, origination fees, and other expenses. That’s why we recommend referring to APR and not interest rate to do a side-by-side comparison of two loans you’re interested in across different lenders.

Do I need excellent credit to get a reasonable rate?

One of the best ways to get a reasonable rate is to have excellent credit. However, there’s no shortage of programs like government-backed FHA or VA loans that can relax credit requirements and make it easier to qualify. Do not forget about improving your credit score before taking out a mortgage or refinancing a mortgage, so that you can save thousands in interest over the entire loan term.

What types of loans are available from legit lenders?

There are all types of loans available from top lenders, including traditional 15-year or 30-year loans. Additionally, government-backed loans like the FHA, VA, and USDA offer excellent benefits for first-time home buyers, minimizing appraisal activity and simplifying down payments. Refinancing loans come with a variety of options, including rate and term, cash-out, and streamline options.

Do not forget about adjustable-rate mortgages that offer lower initial rates for a set period before defaulting back to market conditions. It is an excellent choice for home buyers who do not plan to stay in their home long.

How much are closing costs? Can they be negotiated?

With closing costs typically estimated to be in the 2% to 5% range, some fees are easier to negotiate than others. For example, loan origination or points can be negotiated while taxes and appraisal fees are generally set. Plus, some lenders allow you to roll closing costs into your actual loan balance or offer credits in exchange for choosing a higher interest rate.

That’s why we recommend using online comparison tools like SuperMoney to assess all of your options and see how each lender differs in terms of fees.

Can I lock in a rate? How long does the lock last?

Yes, it is very easy to lock in a rate, which is typically applied for 30 to 60 days. This allows you to be protected in the event of rising rates as you go through the underwriting and approval process. Two of our recommended options, Rocket Mortgage and Simplist, make it very easy to obtain online rate locks in real time, unlike traditional banks, which require in-person visits or phone calls for slower processing times.

Just be mindful of any fees or penalties before expiration.

Will the lender handle my loan long-term?

Different lenders handle loans differently. Some originate and process them themselves, while others sell them to companies like Bank of America or Rocket Mortgage. You’re not supposed to expect the level of service to drop, but it makes sense to understand who will handle your loan after closing and where to go.

How long does it usually take to complete a refinance or mortgage?

You can usually expect a refinance or mortgage to last from 30 to 45 days, depending on whether it’s with a traditional or digital bank, which is known for streamlining everything from pre-qualification to closing. Many factors can influence the timeline, including scheduling appraisals, verifying your financial documentation, and underwriting.

What kind of support can the lender provide after closing?

The type of support you can expect from the lender after closing depends on the lender’s type. Most of them should provide you with an online dashboard where you can track your loan progress in real time, make payments, and understand your escrow.

Others may offer you email or app notifications, along with essential milestones sent via email. Note, general service teams manage some lenders, while others have dedicated loan officers handling specific tasks.

Choosing the right mortgage lender may feel overwhelming. Still, it’s about finding highly recommended lenders that offer a balance of service speed and flexibility, whether it’s a digital-first lender like Rocket Mortgage or a traditional lender like Chase or Bank of America. First-time home buyers and veteran home buyers can all benefit from our guide, simplifying the home-buying process.

Conclusion

Choosing the right mortgage lender may feel overwhelming. Still, it’s about finding highly recommended lenders that offer a balance of service speed and flexibility, whether it’s a digital-first lender like Rocket Mortgage or a traditional lender like Chase or Bank of America. First-time home buyers and veteran home buyers can all benefit from our guide, simplifying the home-buying process.