If you’re looking to buy or refinance a home, you’ll find a wide range of mortgage lenders to choose from. They offer many similar products, but the details are slightly different in each case. How to find the right one for you?
To help you narrow down the field, we’ve researched the most important characteristics of the top 45 mortgage lenders in the country. Each was given a score from 0 to 5, based on the following methodology.
Our Processes
To fairly judge companies, we looked at the following main categories with accompanying weightings:
- Quality of service: 55%
- Operational characteristics: 27%
- Types of loans offered: 12%
- Accessibility: 6%
Companies were rated on a scale of 0 to 5 using a variety of criteria in each category, such as whether or not they offer online applications, how many states they are licensed to issue mortgages in, and whether they offer or not loans like jumbo and FHA. Each criterion was weighted according to its importance and the scores were combined to create an average score for each company.
Data gathering
We collected information on 45 mortgage lenders, consisting of over 1,200 original data points and information from the NMLS, HDMA and Scotsman databases. A survey was conducted of 1,195 mortgage borrowers to better understand customer satisfaction, amounts borrowed, interest rates, and mortgage terms, among other factors. We also reached out to company representatives for more information on their coverage.
Quality of service
We examined the following quality of service criteria with the corresponding weightings:
- Overall customer experience: 42.50%
- Benefits and subsidies: 5%
- Online application: 5%
- Help with online application: 2.50%
Companies that provide better quality of service to customers scored higher; overall, service quality factors accounted for 55% of the total score.
Overall customer experience
We asked mortgage borrowers about their experiences with mortgage lenders and assigned each lender a rating from 0 to 10. Getting a mortgage loan is an important and potentially stressful life event. This criterion therefore represented 42.50% of the total score.
Benefits and Subsidies
Some lenders offer special programs for new and first time buyers, such as Home Possible and HomeReady loans. We gave companies a score of 1 if they offer benefits and subsidies, and a score of 0 if they don’t; this criterion accounted for 5% of the total score.
Online application
Having a simple online application is important today. We rated companies on whether or not they offer such a feature; this factor accounted for 5% of the total score.
Online application help
Mortgage applications are complicated and can be confusing. the best lenders offer some form of assistance to applicants online, such as help from a loan officer via chat. We gave companies a score of 0 if they don’t offer online application support, and a score of 1 if they do; this factor accounted for 2.5% of the total score.
Operational characteristics
We looked at the following operational characteristics with accompanying weights:
- State License: 12%
- Number of loan officers: 5%
- Number of loan originators: 5%
- Physical branches: 5%
Companies with a broader reach and more loan officers and originators performed better overall. In total, operational characteristics accounted for 27% of the total score.
State license
The more states a company is licensed to lend to, the more available it will be to the average customer. We rated companies on a scale of 0 to 1 based on the number of states in which they are licensed to lend; this factor accounted for 12% of the total score.
Number of loan officers
Most lenders require you to work with a loan officer to complete your mortgage application, so the availability of loan officers is important. The number of agents employed by a lender can change often. We scored companies on a scale of 0 to 1 based on the number of loan officers they have; this factor accounted for 5% of the total score.
Number of loan issuers
Mortgage originators also play an important role in the process. We scored companies on a scale of 0 to 1 based on the number of loan originators they have; this criterion accounted for 5% of the total score.
Physical branches
We scored companies based on the number of active physical branches they have; the more branches, the higher the score. This factor accounted for 5% of the total score.
Types of loans offered
We looked at whether or not lenders offered the following loan types, with corresponding weightings: