Owning a home ranks high on most people’s bucket lists. Home ownership confers an enduring sense of pride, whether buying a pre-built mansion or constructing one from scratch. It also strikes one essential component off your monthly budget – rent.
Now, there are two primary ways to become a proud homeowner. They include setting aside some of your income and taking a home loan from some of the best online mortgage companies.
Financing a home from your savings will suit you better if you’re in a well-paying job and can put together the requisite capital within a few months. However, the steady rise in inflation rates means the cost of construction materials may shoot through the roof sooner than later, potentially rendering your savings inadequate. That makes the second option more viable.
The challenge usually lies in finding the right lender. And that’s where this online mortgage lenders review comes in handy.
Read below for a definitive review of the best digital mortgage lenders in 2023.
1. Bank of England
The Bank of England traces (BoE) its roots back to 1898. The company has been providing a variety of banking services for over its 125-year’s existence, including home loan facilities.
The Bank of England offers the best mortgage rates online for fixed- and adjustable mortgages.
Fixed-rate mortgages are ideal for aspiring homeowners looking to build equity by investing in a stable, traditional mortgage. The periods vary from 10 – 30 years.
On the other hand, BoE’s adjustable rates attract lower interest rates and monthly payments. The rates remain fixed for 3, 5, 7, or 10 years.
- Different home loan facilities
- Both fixed-rate and adjustable-rate mortgages are available
- Responsive support
- The website is a bit difficult to use
- Closing process can take considerably long
Better.com was founded in January 2016 by Vishal Garg. Despite being a relatively new entrant in the home loan financing sector, the company has been giving its competitors a run for their money.
Better.com has issued over $100 billion in online home loans since its establishment. The lender charges no commissions on home loan applications. You can have your loan application closed in 17 days, which is considerably less than the industry average of 45 – 60 days.
You’ll also love Better.com for its swift online mortgage pre-approval and powerful algorithms that match you with the right home loan. There’s also the option of applying for fixed-rate or adjustable-rate mortgages.
The lender also provides Veterans Affairs (VA) loans, Federal Housing Administration (FHA) loans, and Jumble loans.
- Competitive interest rates
- Straightforward application procedure
- Reasonably low fees
- No U.S. Department of Agriculture (USDA) loans
- No local branches
3. Loan Depot
Loan Depot is more like the Home Depot of home financing.
Not only does the company offer tons of products under one roof. It also guarantees a low-cost online mortgage, making it suitable for aspiring homeowners with meager incomes.
For over 12 years, Loan Depot has advanced new home loans to $96 billion and additional mortgage refinancing worth $179 billion. The website implements a handy online mortgage calculator to determine the home loan amount you qualify for.
Loan Depot is a direct lender too. The apparent lack of intermediaries helps expedite the settlement process while eliminating any middleman markups.
- Excellent for direct lending
- The speedy digital underwriting process
- Available in 200+ locations
- Lack of USDA-subsidized loans
- Limited online experience
4. Rocket Mortgage
Rocket Mortgage is another home loan company worth considering.
What makes Rocket Mortgage one of the best online mortgage lenders is its product diversity. You can find it here if you’re looking for Jumbo, home equity, FHA, or VA loans.
Rocket Mortgage charges a rock-bottom down payment, too. You can put down as little as 1% if your income is below certain predefined thresholds.
There are two fixed-rate periods – 15 months and 30 months. Alternatively, you can opt for adjustable-rate home loans. This option entitles you to a lower initial rate that can change depending on the economic dynamics.
- Multiple home loan products
- Down payment of as little as 1%
- Straightforward online application
- No USDA loans
- No foreclosure loans
5. Bank of America
The first thing you’ll love about the Bank of America as a digital lender is its intuitive website. The dashboard is clean and uncluttered, with all critical functions within sight.
Bank of America also offers different types of home loans. You can apply for a regular mortgage, online mortgage refinance loan, and home equity line of credit (HELOC). There are also doctor loans for medical professionals with a high outstanding student loan.
On Bank of America’s official website are several resources, including a mortgage calculator, a closing costs calculator, and an affordability calculator.
Mortgage rates vary depending on whether fixed-rate (15 years or 30 years) or adjustable-rate. Feel free to contact the company’s support directly to obtain online mortgage quotes or make further inquiries.
- Diverse home loan products
- Down payment as low as 3%
- Reasonable borrower requirements
- No USDA loans
- Considerably long pre approval period
Recent statistics show that JPMorgan Chase’s assets declined slightly from $3.48 trillion to $3.26 trillion.
However, Chase remains the largest bank in the United States by asset value. That also makes it a go-to place for home loans.
Besides its diverse, low-cost online mortgage facilities, Chase Bank offers many loans. These include conventional home loans, new purchase & refinance loans, HELOC loans, Jumbo loans, and federally subsidized FHA loans.
Many clients take exception to the fact that they have to work with an in-person loan officer. But on the flip side, this arrangement helps you track your loan application status more effectively.
- Diverse loan products
- Amazing discounts for existing Chase account holders
- A large staff of loan officers
- Hidden fees, such as rate lock-in charges
- Need to speak directly to human representatives
7. Flagstar Bank
If you’re looking for a home loan company that provides digital and physical efficient services, then you’re probably looking for Flagstar Bank.
Flagstar provides handy tools that make the digital mortgage process a breeze. You can apply for loans digitally in all fifty states and physically in selected locations. Available products include conventional, VA, FHA, USDA, and Jumbo loans.
Flagstar Bank has a mobile app that further eases the online loan application process, making it a top Cash App alternative. Perhaps you’ve always wondered how do you borrow money from Cash App? Much like Flagstar, borrowing money from Cash App is straightforward. All you need is to download and install the application and check out the instructions from the app’s menu.
Lastly, like Chase, Flagstar provides attractive incentives for existing or returning clients.
- Available both online and physically
- Reasonable mortgage rates
- Low minimum credit score
- Limited branch locations
- Poor customer satisfaction rates
8. Veterans United
Veterans United offers the lowest average-rate VA loans and the country’s fastest online mortgage application process.
The only requirement is a minimum credit score 620 to qualify for home loans with the lender.
Fortunately, Veterans United considers your residual income part of pre-qualifying you for its various online mortgage options. That makes it suitable for borrowers with an unfavorable debt-to-income (DTI) ratio.
Veterans United also offers flexible rates depending on when you plan to purchase your home. The company charges a flat lender fee of 1%, which caters to originating fees and processing and underwriting fees.
- No down payment required
- Wide loan variety
- Supportive loan staff
- Relatively high credit score requirements
- No HELOC
9. Ally Bank
Ally Bank stands out from other top online mortgage lenders mainly because of its fast loan closing period and favorable lending terms.
It pre-approvals take as little as three minutes. Loan applications typically close up to 10 days faster than the industry average.
Ally’s loan application process can be completed entirely online. There’s a team of dedicated staff that are ready to answer your queries on the go.
The company doesn’t charge application, origination, processing, or underwriting fees. It doesn’t work with an online mortgage broker, eliminating all associated markups. Among the home loan options Ally Bank provides include Jumbo loans, fixed rates, and adjustable rates.
- No lender fees
- Down payments as low as 3%
- Swift pre approval
- Only works online
- No VA, FHA, or USDA loans
Many of the above-listed lenders provide conventional and FHA, VA, USDA, Jumbo, and HELOC loans.
However, Truist does you one better. The company offers a variety of specialty loans, including physician loans, warehouse lending mortgages, and construction loans.
When you compare online mortgage lenders, you realize Truist also provides one of the most competitive rates. The rates are reasonable whether you opt for fixed-rate or adjustable-rate mortgages.
The Truist website implements a handy mortgage payment calculator and a home affordability calculator. With down payments as low as 3%, it’s understandable why millions prefer this company for home loan financing.
- Homebuyers educational resources
- Same-day pre-approval
- Low down payment requirements
- Unclear eligibility requirements
- Limited branch locations
There goes our rundown of the best home loan lenders. Most of these companies provide resourceful tools on how to borrow money fast using their mobile applications.
But perhaps the key thing to remember is that no two lenders are the same. Therefore, be sure to define your needs and endeavor to find a company that meets most (if not all) of those requirements.