The Best Mortgage Lenders of September 2022
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The best mortgage lenders of September 2022
Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Choosing the right mortgage lender is important for a lot of reasons. Saving money is a big part of that, but getting the type of loan you're looking for and having a smooth experience are important, too.
We've chosen lenders that offer a variety of mortgage types and offer worthwhile extra features, such as down payment assistance. Many of our top picks also thrive in customer satisfaction and accept non-traditional credit (such as proof of making rent or utility payments on time) if you don't have a credit score, making it easier to qualify.
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Rocket Mortgage by Quicken Loans
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AmeriSave Mortgage Corporation Mortgages
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New American Funding
Best overall: Northpointe Bank
- Huge variety of mortgages to choose from
- Offerings include mortgages that close in 15 days or less, 0% down mortgages, and mortgages for those who have recent negative events on their credit reports
- Works with 17 different states to provide down payment assistance
- Can’t get customized rates online
- Some mortgage options aren’t available in every state
- Doesn’t disclose lender fees online
- Available in all 50 states and Washington, DC
- Has branches in 25 states
- Minimum credit score and down payment displayed are for conforming mortgages. The 3% down option is available to low-income borrowers. Regular conforming mortgages require at least 5% down.
Best for customer service: Rocket Mortgage
- Quick, user-friendly online experience
- Terms as short as eight years
- Offers mortgages in all 50 US states and Washington, DC
- Can't speak to an employee face-to-face (although you can talk via live chat or over the phone)
- No USDA loan, home equity loan, HELOC, reverse mortgage, or construction loan
- Can't apply with alternative credit data (like utility bills)
- Minimum credit score and down payment displayed are for conforming mortgages
- Offers homes loans in all 50 US states and Washington, DC, but there are no physical branches
- You can't apply with alternative credit data, such as utility bills — Rocket Mortgage will do a hard credit pull
Best credit union: Navy Federal Credit Union
- No-down-payment mortgage available
- Apply with alternative credit data along with or instead of a credit score
- Easy online application
- Strong interest rates
- No FHA mortgage, USDA mortgage, home equity loan, HELOC, construction loan, or reverse mortgage
- You must be eligible to join Navy Federal Credit Union to get a mortgage
- No personalized mortgage rates available online
- You may be eligible for a mortgage if you are an active military member, veteran, family member of someone affiliated with the military, Department of Defense civilian, or housemate of an existing Navy Federal member
- Branches around the US and on US military bases abroad
- Military Choice mortgage is a 30-year mortgage for military members with no minimum down payment; Homebuyer Choice mortgage is a 30-year mortgage for people who don't qualify for VA loans with no minimum down payment
- Apply with alternative credit data, such as proof that you pay utility bills
- Live customer support 24/7
- Minimum credit score listed is for VA loans, which usually do not require a down payment
Best for veterans: Veterans United
- Can apply online or at a branch
- Isn't limited to just VA mortgages
- Can use alternative forms of credit (like utility bills) because you have a low or no credit score
- No home equity loan, HELOC, reverse mortgage, or construction loan
- Can't see customized interest rates online
- Offers mortgages in all 50 US states and Washington, DC
- Branches in 18 US states
- Refinancing options for VA, conforming, and jumbo mortgages
- Apply with alternative credit data if you have a low credit score (or none at all)
- Minimum credit score listed is for VA mortgages, which usually do not require a down payment
Best for renovation loans: Fairway Independent Mortgage Corporation
- Variety of mortgages and term lengths
- Apply with alternative credit score if you have a low/no credit score
- Offers mortgages in all 50 US states
- Option to close on your loan digitally instead of in person
- No home equity loan, HELOC, or construction loan
- Can't see personalized interest rates online before
- Offers mortgages in all 50 US states and Washington, DC
- Branches in every US state except Alaska and West Virginia
- Apply with alternative credit data (such as proof that you pay bills on time) if you have a poor or no credit score
- Minimum credit score and down payment displayed are for conforming mortgages
Best variety of options: Guild Mortgage
- Apply with alternative credit data if you have no credit score
- Hybrid closing
- No home equity loan, HELOC, or construction loan
- Charges funding, underwriting, and wire transfer fees
- Sometimes charges origination fees
- Can't see mortgage rates online
- Offers mortgages in every US state except New York and New Jersey
- Branches in 32 US states
- Show alternative credit data, such as utility bills, to help your application if you have no credit score
- Minimum credit score and down payment displayed are for conforming mortgages
Best for non-traditional credit: New American Funding
- Variety of home loans, including a specialized buydown loan or I CAN loan
- Apply with non-traditional forms of credit if you have no credit score
- No home equity loan, HELOC, or construction loan
- Offers mortgages in every US state except Hawaii and New York
- Branches in 32 US states
- If you have no credit score, you may be able to apply with alternative data such as proof of paying bills on time
- A buydown loan lets you pay a fee at closing to get a lower interest rate for the first 1-3 years of your mortgage
- I CAN Mortgage provides terms as short as 8 years
- Minimum credit score and down payment displayed are for conforming mortgages
Best for a simple, online process: NBKC Bank
- Simple online process
- Easily view customized rates
- Unique mortgage program for pilots
- HELOCs are only available to Kansas City metro area residents
- Can't apply with non-traditional credit data if you have a low credit score
- Provides mortgages in all 50 US states and Washington, DC
- Branches in Kansas City, Missouri
- $750 in lender fees, including the application, origination, underwriting, and processing fees
- Minimum credit score and down payment displayed are for conforming mortgages
Best for down payment assistance: Bank of America
- Offers a conforming, jumbo, FHA, or VA mortgage or a HELOC
- If you're a Bank of America Preferred Rewards customer, you can get discounts
- Bank offers down payment assistance programs and an affordable mortgage product for first-time borrowers that accepts non-traditional credit
- Doesn't have a USDA or reverse mortgage, home equity loan, or construction loan
- Need to have a fair credit score
- Can't refinance into an FHA or VA mortgage if you aren't a Bank of America customer
- Offers mortgages in all 50 US states and Washington, DC
- Branches in 36 states and Washington, DC
- If you're already a Bank of America Preferred Rewards client, you could receive a $200 to $600 discount on your loan origination fee
- Minimum credit score and down payment displayed are for conforming mortgages
Best for low credit scores: Carrington Mortgage Services
- Has multiple mortgage options for borrowers with low scores
- Carrington Flexible Advantage loan will consider borrowers who have recent credit events including bankruptcy, short sale, or late payments.
- Not available to residents of North Dakota or Massachusetts
- No home equity loans, HELOCs, reverse mortgages, or construction loans
- No personalized interest rates shown online
- Offers mortgages in all US states except Massachusetts and North Dakota
- Accepts alternative forms of credit, such as proof that you pay bills on time, if you have a low/no credit score
- Minimum credit score and down payment displayed are for conforming mortgages
Best for low-income borrowers: Chase
- Many types of loans, including HELOCs
- The Chase DreaMaker mortgage is a good option for lower-income borrowers
- Advanced tool for seeing personalized rates and payments
- Mortgages in all 50 US states and Washington, DC
- No USDA loans, home equity loans, reverse mortgages, or construction loans
- Doesn't accept alternative forms of credit
- You might have to fill out an online form rather than speak with a loan officer
- Offers home loans in all 50 US states and Washington, DC
- Branches in 32 US states
- Does not accept alternative credit data, such as proof of paying bills on time, in lieu of a credit score
- Minimum credit score and down payment displayed are for conforming mortgages
Comparing the best mortgage lenders
Northpointe Bank (jump to Northpointe Bank details»)
The bottom line: Northpointe Bank has a huge variety of mortgage options to choose from, including specialty loan options that allow 0% down payments, recent credit events, and more.
Northpointe Bank is an affordable lender with good online customer reviews and lots of features to suit the needs of many different types of borrowers.
Northpointe Bank currently has an A+ rating from the BBB. To get started with this lender, you can fill out an online form to get a quote or use its "find a loan expert" tool to apply with a loan officer near you.
Rocket Mortgage (jump to Rocket Mortgage details»)
The bottom line: Rocket Mortgage is a great option if you're comfortable applying online and have a good credit score.
Rocket Mortgage ranked as the top lender for customer satisfaction from J.D. Power for 11 consecutive years, and ranked No. 2 in 2021. It offers a quick, easy online experience and has mortgages with terms as short as eight years.
Rocket Mortgage has an A+ rating from the BBB. This lender doesn't have any physical branch locations, so you'll complete your application process completely remotely.
Navy Federal Credit Union (jump to Navy Federal Credit Union details»)
The bottom line: Navy Federal is a good option for people affiliated with the military overall, but especially if you're searching for a lender that's friendly to people who aren't in the best financial situation — namely, people with low credit scores and little money for a down payment.
Navy Federal is a solid choice for military-affiliated homebuyers, whether they're looking for a VA loan or another type of mortgage. Its Homebuyers Choice mortgage, for example, is a conventional mortgage with no down payment required and no mortgage insurance.
Navy Federal received a high score in customer service from J.D. Power, but didn't rank in the annual study because it doesn't meet certain criteria.
The BBB gives Navy Federal an NR (No Rating). You can only become a member of Navy Federal Credit Union if you or your family is affiliated with the military, you are a Department of Defense civilian personnel or contractor, or you live with a Navy Federal member.
Veterans United (jump to Veterans United details»)
The bottom line: Veterans United is a good option for several types of mortgages, but VA loans are its strongest products. It could also be a good fit if you have a poor or no credit score.
Veterans United earned a very high score in customer service on J.D. Power's 2021 Primary Mortgage Origination Satisfaction Study, though it doesn't qualify to rank because it doesn't meet certain criteria.
This lender has an A+ rating from the BBB.
Fairway Independent Mortgage Corporation (jump to Fairway Independent Mortgage Corporation details»)
The bottom line: Fairway Independent Mortgage is a good lender for people who want to explore their options. It provides many types of home loans and has several term lengths to choose from.
Fairway Independent offers a digital closing option, giving borrowers the ability to have a quick, remote closing experience. You may also be able to use non-traditional credit when applying with this lender.
Fairway Independent has an A+ rating from the BBB and ranked above average in J.D. Power's annual study.
Guild Mortgage (jump to Guild Mortgage details»)
The bottom line: Guild Mortgage is a good option for many types of people, because it has multiple home loans for borrowers in different situations.
Guild Mortgage is an affordable lender thanks to its down payment assistance programs and willingness to accept non-traditional credit from borrowers with no score. It also offers a hybrid digital closing option.
Guild currently has an A- rating from the BBB. In 2021, it earned the No. 1 spot in J.D. Power's annual customer satisfaction study.
New American Funding (jump to New American Funding details»)
The bottom line: New American Funding is a strong mortgage lender overall, and its buydown loan and I CAN loan make it easy to customize a mortgage to your specific needs.
New American Funding offers a couple of unique mortgage options, including its I CAN mortgage. The I CAN mortgage lets you choose any mortgage term length from eight to 30 years. This level of customization means you can choose a term that's long enough that your monthly payments remain affordable, but short enough that you save money on interest.
New American Funding currently has an A+ rating from the BBB. This lender accepts non-traditional credit from borrowers who have no score on some of its mortgages.
NBKC Bank (jump to NBKC Bank details»)
The bottom line: NBKC Bank is a worthwhile option if you have a good credit score and value online convenience.
NBKC Bank makes it easy to get a customized mortgage rate using its rate calculator. It's application process is simple, convenient, and can be completed online. It also has a unique mortgage program available for pilots.
NBKC currently has an A+ rating from the BBB
Bank of America (jump to Bank of America details»)
The bottom line: Bank of America is a good mortgage lender overall, but you'll need a decent credit score to qualify for a mortgage.
Bank of America offers borrowers up to $7,500 in closing cost assistance and up to $10,000 in down payment assistance. If you already have an account with Bank of America, you may be able to get a discount on your origination fee.
Bank of America has an A+ rating from the BBB. It ranked above average in J.D. Power's 2021 Primary Mortgage Origination Satisfaction Study.
Carrington Mortgage Services (jump to Carrington Mortgage Services details»)
The bottom line: Carrington is a worthwhile option, particularly if you have a low credit score. It's government-backed mortgages allow scores as low as 500.
Carrington has flexible credit requirements on many of its mortgages. It offers a Carrington Flexible Advantage mortgage, which allows borrowers with credit scores as low as 550 and recent negative credit events to get a mortgage.
Carrington has an A+ rating from the BBB.
Chase (jump to Chase details»)
The bottom line: Chase is a strong mortgage lender overall, but you'll need a decent credit score to qualify.
Chase's DreaMaker mortgage is an affordable option for lower-income borrowers, with a minimum down payment requirement of just 3% and flexible credit guidelines. Its Homebuyer Grant program also gives out up to $2,500, or $5,000 to borrowers in low-income or majority-Black areas.
Chase has a A- rating from the BBB. It ranks below average on J.D. Power's Primary Mortgage Origination Satisfaction Study.
Other mortgage lenders that didn't make the cut and why
We examined over two dozen mortgage lenders. Here are the ones we didn't choose as our favorites:
- USAA: This is a good option for VA loans, but it doesn't offer other types of mortgages.
- Regions: You might like using Regions, but the bank only has branches in certain parts of the US.
- Citibank: This bank received good customer satisfaction ratings from J.D. Power, but an F from the BBB.
- Better.com: A good option if you want a conventional loan from an easy-to-use online lender, but Better.com doesn't offer FHA, USDA, or VA loans.
- SoFi: SoFi is another worthwhile choice for conventional mortgages, but you can't get an FHA, USDA, or VA loan.
- Paramount Bank: You might like Paramount as an online lender, but it doesn't offer as many mortgage types as our top picks.
- Pennymac: Pennymac offers a variety of mortgage types, but it ranks low on J.D. Power's customer satisfaction survey.
- Flagstar Bank: This bank has received an A+ from the BBB, but J.D. Power ranks it pretty low on customer satisfaction.
- Mr. Cooper: This lender offers several types of loans, but J.D. Power ranks it low for customer satisfaction.
- Alliant Credit Union: This is a good online lender with conventional mortgages and HELOCs, but it doesn't have FHA, USDA, or VA mortgages.
- Caliber Home Loans: You can find lenders with better customer satisfaction ratings from J.D. Power.
- Loan Depot: Loan Depot isn't accredited by the BBB, and it doesn't offer USDA loans.
- Guaranteed Rate: You might like Guaranteed Rate, but it only has an A- from the BBB.
- Freedom Mortgage: This lender has a variety of mortgage types, but J.D. Power ranks it low for customer satisfaction.
- Wells Fargo: Due to some recent scandals, Wells Fargo has received an F in trustworthiness from the BBB.
- Truist: You might enjoy working with Truist, but it scored below average on J.D. Power's annual survey.
- US Bank: This is a strong lender for home equity loans and HELOCs, but it ranked low on J.D. Power's 2021 survey.
- PNC Bank: PNC has a good range of mortgage types to choose from, but its special features aren't as strong as many of the lenders that made our list.
Methodology: How we chose the best mortgage lenders for 2022
To choose the top mortgage lenders of September 2022, we looked at five main factors:
- Variety of loan types. Does a lender offer several types of loans to suit customers' needs? Conventional loans, government-backed loans, and jumbo loans are some of the most common mortgages offered by lenders. We looked for lenders that offer these basics, and we also considered whether they offer more niche types of loans — such as renovation loans, home equity loans or HELOCs, or specialty loans (mortgages that are unique to a specific lender).
- Customer satisfaction. If the lender appeared in the J.D. Power 2021 Primary Mortgage Origination Satisfaction Survey, we looked at its ranking. If it wasn't in the survey, then we read online customer reviews.
- Affordability. We looked at lenders' minimum credit scores and down payment amounts. We also checked whether they offer government-backed loans, which can be more affordable for borrowers with less-than-perfect financial profiles. Finally, we looked at whether they have any flexible credit guidelines. This could include allowing borrowers to have recent negative events, such as bankruptcy or foreclosure, on their credit reports, or accepting non-traditional credit, like utility bills and rent payments, in lieu of a traditional credit score.
- Ethics. Almost all of our top picks received an A+ from the Better Business Bureau, which measures companies' trustworthiness. We also researched and considered any scandals in the past three years.
- Attractive features. There are thousands of mortgage lenders in the US, and many of them will do a satisfactory job helping you purchase your next home. But the best lenders have extras that make them stand out; things like down payment assistance, rate matching, or the ability to pick the exact number of years you want your loan term to be.
Are these mortgage lenders trustworthy?
The Better Business Bureau grades companies based on responses to customer complaints, honesty in advertising, and transparency about business practices. Here are the BBB grades for our top mortgage lenders:
| Lender | BBB grade |
| Northpointe Bank | A+ |
| Rocket Mortgage | A+ |
| Navy Federal Credit Union | NR |
| Veterans United | A+ |
| Fairway Independent Mortgage Co. | A+ |
| Guild Mortgage | A- |
| New American Funding | A+ |
| NBKC Bank | A+ |
| Bank of America | A+ |
| Carrington Mortgage Services | A+ |
| Chase | A- |
Most of our top picks have an A+ from the BBB. The exceptions are Guild Mortgage, Chase, and Navy Federal. Guild Mortgage and Chase have an A- rating from the BBB due to government actions taken against the businesses. Navy Federal has an NR ("No Rating") because it is responding to customer complaints that had previously closed.
Several of these lenders do have recent public controversies, though, even the ones with great BBB grades.
In 2019, the US Justice Department required Rocket Mortgage's parent company Quicken Loans to pay $32.5 million for alleged mortgage fraud. The Justice Department claimed Quicken Loans approved mortgage applications it shouldn't have. Although Quicken Loans paid the settlement, the company never admitted to mortgage fraud.
A Navy Federal employee has claimed the lender pressured mortgage underwriters to approve loans even if they didn't have sufficient reason to believe applicants could repay the loans. Then she filed a lawsuit and said Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.
In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn't qualify, resulting in loan defaults.
In 2020, the Department of Justice charged Bank of America for unfairly denying home loans to adults with disabilities, even though they qualified for loans. Bank of America paid around $300,000 total to people who were refused loans. In 2019, the Department of Labor required Bank of America to pay $4.2 million to people who claimed the bank discriminated against women, Black, and Hispanic applicants in the hiring process.
The Department of Justice required JPMorgan & Chase to pay $920 million for wrongful trading in 2020. The company paid the Securities and Exchange Commission $135 million in 2018 for mishandling American Depositary Receipts, certificates that let Americans invest in foreign stocks.
If any of these scandals worry you, you may decide to go with one of the other lenders on our list.
What questions should I ask myself?
Before you get a mortgage, you need to make sure you're financially prepared. These are some things you should be thinking about.
How much mortgage can I afford?
Knowing how much mortgage you can afford isn't just about how much you think a lender will approve you for – you also need to make sure you feel comfortable with your monthly payments and that your budget doesn't feel too stretched.
Just because a lender will approve you for a $300,000 mortgage doesn't mean you should borrow that full amount. Borrowing too much could mean not having any wiggle room in your budget or having to forgo spending money on things you enjoy just to make sure your mortgage is paid.
Is my credit ready?
Most lenders will require you to have a decent credit score and reasonable debt-to-income (DTI) ratio before they'll consider you for a mortgage. For conforming mortgages, this typically means having a credit score of 620 and a DTI below 50%. You'll also need a down payment of at least 3%, though you may be required to have more.
However, if there's room for you to improve your credit situation, you may want to do that before applying for a mortgage, even if you meet your lender's minimum requirements. Taking the time to raise your credit score, lower your DTI, or save for a larger down payment can help you snag a lower rate and save money on interest each month.
What are current mortgage rates?
Knowing how mortgage rates are currently trending will help give you an idea of whether the rates you're being offered by lenders are competitive. It can also help you determine how much house you can afford, since your rate will impact how much you pay each month.
What questions should I ask my lender?
As you shop around for a lender, don't be afraid to ask a lot of questions to make sure they're the right fit for you.
What types of mortgages do you offer?
Most lenders don't offer every type of mortgage that's out there. If you're looking to get a government-backed mortgage like an FHA mortgage, make sure your lender offers them.
What type of mortgage is best for me?
If you aren't sure which type of mortgage is best for you, have your lender walk you through the details of each option available to you. Find out how much each option would cost, both on a monthly basis and overall.
Do you charge any fees?
Mortgage lenders typically charge some sort of fee for using their services, such as an origination fee or application fee. These lender fees will be included in your closing costs, so it's important to understand how much you'll be paying.
Will you sell my loan?
Most lenders sell their mortgages after closing to maintain liquidity and allow them to continue lending mortgages. This process typically doesn't impact you as the borrower.
However, lenders sometimes also sell their loans' servicing rights. The servicer is the entity you make your monthly payments to, so if your lender sells the servicing rights to your loan, you'll send your payments to your new servicer, not the lender you originally got the mortgage from.
Frequently asked questions
What makes a mortgage lender good?
A mortgage lender should offer the kind of mortgage that best suits your needs. For example, if you're in the military, then you could benefit from a VA loan; if you're buying in a rural area, then a USDA loan could be the best fit.
A lender should be relatively affordable. You shouldn't need a super high credit score or down payment to get a loan. It should also offer good rates and charge reasonable fees.
You want a lender that's known for high customer satisfaction, and one that's trustworthy. That's why we've looked at ratings from J.D. Power and the Better Business Bureau for each lender on our list.
What banks offer the best mortgage rates?
The answer could change by the day. Take a look at Insider's daily mortgage rate updates to see the average mortgage rates for various term lengths. If you have a good financial profile but a lender is charging you a higher rate than today's national average, you may want to look elsewhere.
But a low interest rate isn't the only expense that matters. Ask lenders for an itemized list of fees. Comparing fees among lenders is another way to see which is offering the best financial deal.
How can I get a good mortgage rate?
To secure a low rate, focus on three factors: credit score, debt-to-income ratio, and down payment.
Your score should be at least 620 to get a conventional loan with most lenders, although some require higher. But the higher your score, the better rate you should get. To improve your credit score, focus on making payments on time, paying down debts, and letting your credit age if you aren't in a rush to buy.
Your debt-to-income ratio is the amount you pay toward debts each month, divided by your gross monthly income. Lenders typically want to see a debt-to-income ratio of 36% or less. To get a lower ratio, you either need to pay down debts or earn more.
You don't necessarily need a 20% down payment to get a good rate, but the more you save, the better your rate will likely be. If you don't have much for a down payment right now, it could be worth saving for a few more months.
Is it better to get a mortgage from a bank or a lender?
Mortgage lenders specialize in lending. Banks focus on several areas, including personal banking, lending, and investments. There isn't a clear better choice — your decision will come down to a few factors.
Some banks offer discounts on closing costs if you're already a customer. In this case, you may prefer to go with the bank you already use.
Mortgage lenders often have more flexibility, though. Banks are held to stricter lending standards by the federal government, so lenders may be willing to customize your loan to fit your needs.
Ultimately, your choice could come down to which company offers the best rate, lowest fees, and best customer service.
Which should I do first, choose a lender or shop for homes?
It's better to look at mortgage lenders before houses. Once you choose a lender, you can apply for preapproval and get an official preapproval letter that states how much the lender intends to lend to you and locks in your interest rate.
When you choose a home to buy, show your preapproval letter to the seller to show you're a serious candidate in good financial standing. Getting a preapproval letter can give you a leg up on the competition.
You aren't married to a lender once you get a preapproval letter, though. You can apply for preapproval with multiple lenders to compare each company and make an informed decision. You'll only need to show one to a seller, though.
Experts' advice on choosing the best mortgage lender
Insider
To help you learn more about homebuying, mortgages, and lenders, four experts weighed in:
- Anthony Park, author of "How to Buy Your Perfect First Home"
- Lauryn Williams, certified financial planner, founder of Worth Winning Financial Planning
- Julie Aragon, mortgage broker, founder of Aragon Lending Team
- Laura Grace Tarpley, certified educator in personal finance, editor of banking and mortgage at Personal Finance Insider
Our experts have also provided advice about how to know whether you're ready to get a mortgage, and how to decide which type of mortgage is best for you.
Here's what they had to say about mortgages. (Some text may be lightly edited for clarity.)
What factors should someone take into consideration when choosing a mortgage lender?
Anthony Park, author:
"The canned answer is to just go with the lowest rate. However, you also want to take into account who's going to serve your loan best. Are repayments going to be easy for you? Who is most likely to be able to help you if you need to take out a HELOC or refinance later, versus somebody who's more of a one-off type?
"They may have the lowest rates to get you involved, but they might have very, very little hand holding after the fact. I wouldn't recommend paying an exorbitant amount more for potential services in the future, but just don't always necessarily go with the rock-bottom lowest rate. There's sometimes a cost with that."
Laura Grace Tarpley, Personal Finance Insider:
"Apply for preapproval with multiple lenders. Each lender's preapproval letter states how much it would lend to you, and it locks in your interest rate. It's an effective way to compare lenders and see which will give you the best deal.
"But try to apply with all the lenders within a month or so. When you apply for preapproval, a lender does a hard credit inquiry. A bunch of hard inquiries on your report can hurt your credit score, unless it's for the sake of shopping for the best rate. If you limit your rate shopping to a month or so, credit bureaus will understand that you're looking for a home and shouldn't hold each individual inquiry against you."
How can someone decide between a conventional mortgage vs. a government-backed mortgage?
Anthony Park, author:
'It really depends on if you qualify. If you do qualify for FHA or VA mortgages, those are no-brainers. just because the terms are so favorable. If you don't qualify, you fall back by default onto conventional mortgages."
Julie Aragon, Aragon Lending Team:
"The most common government loan that's widely available to almost everyone is the FHA loan. There's a couple of reasons why somebody would go with FHA instead of conventional one. Their credit is a little on the crummy side, let's say below 700. You can get conventional with down to a 620 score, but the mortgage insurance gets really expensive. FHA doesn't discriminate — no matter how perfect or crappy your credit is, the mortgage insurance is the same."
How can someone know whether they're financially ready to buy a home?
Lauryn Williams, CFP:
"You should have funds left over after everything is said and done as it pertains to purchasing the home. So if you don't have an emergency fund plus a down payment, you're probably not ready to purchase a home. Another thing I think about is credit card debt. While you can be approved for a mortgage with credit card debt and student loans and very little cash on hand, you put yourself in a very risky situation."
Laura Grace Tarpley, Personal Finance Insider:
"You should be able to afford the extra costs that come with owning a home, like home repairs or lawn care. You didn't have to budget for those things when you rented, because the landlord was responsible for maintenance."
Mortgage and refinance rates by state
Check the latest rates in your state at the links below.
Alabama
Alaska
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Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
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Louisiana
Maine
Maryland
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Michigan
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Montana
Nebraska
Nevada
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New Mexico
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North Carolina
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Ohio
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Rhode Island
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Tennessee
Utah
Vermont
Virginia
Washington
Washington DC
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