Best online mortgage lenders

Compare our top 7 online mortgage lenders

An online mortgage lender is a good choice if you’re moving to a new city, prefer a faster approval or closing or want a more streamlined process. With so many options, it can be hard to choose a lender. But our list is a good place to start.

The ConsumerAffairs Research Team scored mortgage companies based on recent reviews, online reputations and digital features. Below, we summarize what makes each of our top picks different, discuss loan requirements and cover a few strengths and weaknesses. Read our full methodology for more on how we ranked lenders.

Our picks may be Authorized Partners who compensate us. This does not affect our recommendations or evaluations but may affect the order in which companies appear.

• Rocket Mortgage
• nbkc bank
• Better Mortgage
• Mr. Cooper
• Zillow Home Loans
• Morty
• New American Funding

Launched in 2015, Rocket Mortgage is the flagship business of Rocket Companies, which also provides personal loans, auto loans and solar financing. It offers a completely or mostly online application process (depending on your state) from preapproval to closing, for all of its mortgage products, including government-backed and conventional loans.

Rocket Mortgage loans are available in all 50 states and Washington, D.C., to borrowers with a range of credit scores, including those with lower scores. It also offers a 90-day rate lock program, RateShield.

While there are many incentives to get a mortgage with Rocket Mortgage, if you’re looking for a U.S. Department of Agriculture (USDA) loan or a home equity line of credit (HELOC), you’ll need to use another lender; Rocket Mortgage does not offer those.

Customer support is available via email, live chat and phone seven days a week. 

Nbkc bank is primarily an online bank, but it has branches in Kansas City, Missouri, as well as Overland Park and Leawood, Kansas. In addition to checking accounts, credit cards, personal loans and auto loans, it offers mortgages, refinancing and HELOCs — although HELOCs are available only to residents of the Kansas City metropolitan area. While the application process for nbkc mortgages is done entirely online, nbkc offers personalized service from expert loan officers.

Mortgage options include conventional, Federal Housing Administration (FHA) loans and U.S. Department of Veterans Affairs (VA) loans in all 50 states. The bank also offers a unique Pilot Program to support airline pilots who often struggle to secure lending due to unpredictable pay schedules.

While nbkc bank receives solid reviews from customers for its application ease and customer service, it may not appeal to those outside the Kansas City area, given its limited branch presence.

Customer support is available via email, phone and live chat.

Founded in 2014 with the purpose of making homeownership more transparent and less stressful, Better doesn’t charge any application, origination or underwriting fees. It says it has funded $100 billion in home loans to date.

Better offers both fixed and adjustable rates for conventional and jumbo loans. It also offers FHA and VA loans, but not USDA loans.

One of Better’s most appealing deals is that it gives up to $3,500 in credits toward refinancing costs if a customer refinances with Better within six to 36 months of closing on a Better mortgage loan. HELOCs are available for up to $500,000.

Better also connects borrowers with real estate agents and attorneys, offers title insurance and provides home improvement loans. Its One Day Mortgage promises that users can lock in a rate and get a loan commitment letter within 24 hours. Its Better Price Guarantee aims to improve upon the loan offer of “any valid competitor” by at least $100. If Better can’t do that, it will give you $100 instead.

Customer support is available 24/7 via phone, email and live chat.

Based in Dallas, Texas, Mr. Cooper is one of the largest mortgage lenders in the U.S., with over four million customers nationwide. It is an online lender that offers both fixed- and adjustable-rate mortgages as well as cash-out refinancing. Loan options include conventional loans, FHA loans, FHA Streamline Refinance, VA loans and jumbo loans of up to $2.5 million.

Mr. Cooper offers instant preapproval that’s valid for 120 days, as well as a verified approval letter by the next business day. It also offers a Close On Time Guarantee, which will cover your first month’s mortgage payment should there be a delayed closing (some exceptions apply).

Customer service is available via live chat with an online account or via phone.

Though it’s perhaps better known for its real estate listings and mortgage marketplace, Zillow now offers its own direct mortgages, a result of its acquisition of Mortgage Lenders of America in 2018. Zillow mortgages include conventional, VA and FHA loans, as well as refinancing. Pre-qualification can be done in as little as three minutes, with no hard pull on your credit score.

During pre-qualification, you’ll be walked through a series of questions about where you are in your home-buying journey and how much you’re planning to spend. You’ll then fill out your contact details, and someone from Zillow will contact you.

Zillow Home Loans provides a variety of calculators on its website to help you determine things like monthly mortgage payments, how much home you can afford and whether you should refinance your mortgage. It also presents clear, helpful examples of potential loan amounts, showing different term lengths and interest rates.

Customer service is available via phone and online contact form.

Morty is an online mortgage marketplace, and its goal is to make the home financing process more accessible and efficient. Users create an online account, then Morty’s interactive quote tool provides personalized loan options. Preapprovals take just a few minutes, and once you have an accepted offer, you can lock in the loan directly through the Morty platform. Morty says it has processed over $1.2 billion in loans to date.

The Morty platform offers conventional 15-, 20- and 30-year fixed-rate mortgages, as well as adjustable-rate mortgages. It also supports FHA and HomeReady loans for people with lower credit scores or income, as well as jumbo loans up to $2 million. While the platform does not directly support VA or USDA loans, it can connect users to partners that deal with those programs.

Morty’s Closing Date Promise waives appraisal fees for transactions delayed up to 24 hours and also provides mortgagors with a $2,000 Visa gift card for delays beyond that. Its Quick Close Advantage expedites the closing process to a period as short as 14 business days.

Customer service is available via email and phone.

New American Funding is a direct lender with a specific focus on underserved communities. Its Latino Focus initiative addresses the unique challenges that Hispanic homebuyers face, and its New American Dream initiative aims to increase homeownership in Black communities. New American Funding says that in 2021, 33.3% of its loans went to minority borrowers.

The lender also has a focus on homebuyers who serve or have served in the military. Its Military Heroes Focus initiative aims to increase homeownership for active military members, veterans and their families.

New American Funding offers 15- and 30-year fixed-rate mortgages, as well as adjustable-rate mortgages. Loan options include conventional, FHA, USDA, VA and jumbo loans, as well as reverse mortgages. Its I CAN mortgage aims to serve borrowers’ individual needs by offering repayment terms of eight to 30 years and down payments as low as 5%.

Customer service is available via phone, email and an online customer care portal. There are also in-person branches throughout the U.S.

What is an online mortgage?

An online mortgage is the same as a traditional mortgage you apply for at a brick-and-mortar bank, but everything (or almost everything) is done digitally; you won’t need to set foot inside an office for most or all of the process. While most traditional lenders allow for at least part of the mortgage application process to be handled online, some lenders, such as Better Mortgage, operate exclusively online.

You can apply for most types of home loans online, including conventional loans and mortgage refinancing.

Note that if you are a nontraditional buyer, which includes those who are self-employed, retired, have poor credit or need a jumbo loan, you might have a more difficult time getting an online mortgage.

» MORE: Best Mortgage Lenders

Different types of mortgage lenders

If you’re shopping for a mortgage, it’s important to understand the different types of lenders you might encounter. These are some of the most common types:

• Nonbank online lenders: These are not traditional banks with savings and checking accounts — instead, they might only offer loans. These lenders provide their services online and may not have brick-and-mortar locations at all. Some online lenders may offer a limited scope of loan types compared to traditional lenders.
• Mortgage brokers: These intermediaries work with several lenders and connect borrowers to these lenders. They can save you time you’d otherwise spend comparing rates from lenders one by one, and they can be particularly useful for nontraditional buyers, such as those with lower credit scores.
• Direct lenders: These are companies that fund your mortgage directly. If you already have a relationship with a direct lender, such as your day-to-day bank, you may be able to get better rates and terms.

Note that there are other types of lenders, such as wholesale lenders, whom you might also encounter. Before signing a mortgage, make sure you understand the nuances of the type of lender you’re working with.

» MORE: Mortgage broker vs. lender

How to apply for an online mortgage

Applying for a mortgage online isn't that different from applying at a local bank. The main difference is that, with an online mortgage, the application process is handled digitally. For instance, you’ll have to upload PDFs of important documents, and you can track your loan's progress through an app or secure online portal.

Other than that, you’ll follow the usual steps to getting a mortgage. This includes deciding what type of mortgage you’re looking for; comparing different lender options, rates, and terms; and figuring out how much house you can afford.

Once you’ve selected a lender, you’ll need to complete an application and submit all necessary documentation, including your:

• Photo ID
• Recent W-2s or pay stubs
• Recent tax returns
• Bank account statements
• Proof of other assets
• Documentation of debts
• Home purchase price

If you’re a first-time homebuyer, lenders may ask for your renting history. The lender will also pull your credit report and check your credit score.

After the lender reviews your documentation and application, you’ll receive your approval and sign your loan agreement digitally. However, some lenders might require you to attend an in-person closing, so make sure you ask about that ahead of time.

» MORE: How to get a mortgage

Pros and cons of online mortgage lenders

Before deciding to apply for a mortgage with an online lender, compare the pros and cons. For instance, with an online lender, you can apply at your own convenience and pace. It’s also easier online to compare interest rates, loan terms, fees and other features across multiple lenders. Approvals and closing are often faster online too.

On the other hand, you might get less personalized service from an online lender. If you have an atypical employment situation or uneven credit history, you might not qualify for a mortgage from an online lender. Additionally, the rates ultimately offered to you may not be as low as advertised rates, which may only be reserved for the most qualified borrowers.

How to choose an online mortgage lender

When selecting an online mortgage lender, you’ll want to compare the different options based on features including:

• Types of loans offered
• Fees, interest rates and term lengths
• Preapproval, application and closing times
• Minimum down payment required
• Minimum credit score required
• Rate lock time
• Closing time guarantee
• Customer service accessibility
• Whether you’ll have a dedicated loan officer

Keep in mind that while online lenders can theoretically make the process of applying for a mortgage more convenient, the process could actually be more difficult and frustrating if a lender has unresponsive customer service or a complicated website. If you’re someone who likes in-person service or who is uncomfortable with all-digital processes, you may prefer a brick-and-mortar lender instead.

Bottom line

An online mortgage lender can be just as legit and safe as a traditional mortgage lender. The primary difference is how you complete the application process. If you prefer a digital application with potentially quicker processing times and don’t mind the lack of face-to-face service, an online mortgage is a good way to secure funding for your new home (as long as you meet certain borrower requirements).

Make sure you compare different online lenders before choosing one; the lenders on this list are a good place to start if you’re overwhelmed with all the available options. Additionally, take the time to carefully read all the terms and conditions before signing the loan agreement.

Methodology

The ConsumerAffairs Research Team started with a list of 60 mortgage companies. We first eliminated those with an overall satisfaction rating below 3.5 stars on our site, leaving 40.

To narrow it down again, we required companies to have at least twice as many 5-star reviews as 1-star reviews over the last year (Dec. 8, 2020, through Dec. 8, 2021), leaving 14. In total, we analyzed 6,245 verified reviews.

We then graded the remaining lenders and brokers on availability, online reputation and digital features, such as free online quotes, easy-to-navigate applications and the option to make monthly payments through a secure portal. Rankings are based on weighted scores, similar to a grade-point average.

Once we selected our top picks, we vetted each through the NMLS Consumer Access portal and confirmed that they have a secure website.