Mortgage
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Best Online Mortgage Lenders of July 2024

Updated on:
Content was accurate at the time of publication.

If you know what to look for, you may be a few clicks away from getting a mortgage from one of the best online mortgage lenders. Despite faster closing times and less paperwork, not all borrowers prefer online lending, though. Understanding how online mortgages work can help you decide if this loan type is a good fit for you.

LenderLendingTree rating and “best online” categoryLender review

Best online lender for FHA loans
Read our review

Best online lender for VA loans
Read our review
ally bank logo
Best online lender for jumbo loans
Read our review

Best traditional bank online lending experience
Read our review

Best online lender for rate information
Read our review

  • Minimum credit score (FHA loans): 580
  • Minimum down payment (FHA loans): 3.5%
  • Available FHA loan programs: Purchase
  • Additional loan products: Conventional, VA, USDA, jumbo, HELOCs
  • LendingTree rating:   Read review

 

  • Minimum credit score (VA loans): 620
  • Available VA loan programs: Purchase, streamline refinance, cash-out refinance
  • Additional loan products: Conventional, FHA, jumbo
  • LendingTree rating:   Read review

 

ally bank logo

  • Minimum credit score (jumbo loans): Not disclosed
  • Minimum down payment (jumbo loans): 10%
  • Maximum jumbo loan amount: $4 million
  • Additional loan products: Conventional
  • LendingTree rating:   Read review

 

  • Minimum credit score: Not disclosed
  • Available refinance programs: Conventional, FHA, VA and jumbo
  • LendingTree rating:   Read review

 

  • Minimum credit score: 620
  • Available programs: Conventional, FHA, VA and jumbo
  • LendingTree rating:   Read review

 

Regardless of how low online rate quotes look, shop with at least three different companies before you choose one. Ask for written loan estimates with lender fee breakdowns, and don’t be afraid to haggle to get the best rate at the lowest costs.

Be upfront and honest about any income or credit issues — your rate quote is only as good as the information you provide. Online lenders vet your finances to ensure you can repay the loan, and any discrepancies could cause delays or even a loan denial.

ProsCons

 Faster approval

 Cookie-cutter approval standards

 Online status checks

 Electronic communication delays

 Electronic signings

 Security and privacy risks

 Less paperwork

 Lack of in-person contact options

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Digital lending may reduce discrimination

A recent study by the National Bureau of Economic Research found that online lending reduced discrimination by 40%, compared to in-person options.

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We reviewed data collected from 35 lender reviews completed by the LendingTree editorial staff in 2023 to determine the best online mortgage lenders in each category chosen in this roundup. It includes winners in best overall categories awarded to lenders in our FHA, VA, refinance and jumbo “best of” articles.

Each lender is given a score between zero and five stars based on several features including digital application processes, available loan products and the accessibility of product and lending information.

To be included in the “best of” roundup, lenders must offer mortgages in at least 35 states and have at least a four-star lender review rating from LendingTree.

An online mortgage is a home loan that can be completed electronically from loan application to closing. Technology takes care of most of the loan process. With your permission, some lenders can access your bank and tax records directly, saving you the hassle of digging up pay stubs, W-2s and bank statements. Others offer options to sign closing documents, including the promissory note, digitally.

The basic process for digital home loans is the same as a standard mortgage, though lenders can often mix and match the level of digital contact to your personal preferences.

The following steps are common for most online mortgage applications:

  • Shop around online. Check mortgage rates online and choose your top three lenders. Or you can use an online rate comparison marketplace, and lenders will contact you with their best offers.
  • Complete an online application. Most lenders offer a secure option for you to apply on their website. If you’re asked to fill out a contact form, a loan officer will call you to gather your information over the phone.
  • Choose what information you want to provide digitally. This is where your online privacy and security comfort comes into play: You can choose whether to let your lender pull up your IRS tax information and view your banking information.
  • Download a tracking app, if the lender offers one. Mortgage apps are popular, and if the lender offers one, you can track the status of your loan through the app.
  • Upload documents if requested. If you opt out of electronically uploading your earnings and banking info, you can generally upload PDF copies of income, asset and purchase documents.
  • Pay upfront fees online. If you need an appraisal or the lender charges an application fee, you’ll receive a payment link to cover the cost with a credit or debit card.
  • Electronically sign your initial documents. Once your mortgage rate is locked, you’ll receive a package with documents including a loan estimate detailing all your fees. Once you’ve e-signed it, the lender can submit your loan for final approval.
  • Upload the final documents and sign your closing disclosure. Once your loan is approved, you may need a few more odds and ends to upload including homeowners insurance and picture IDs. Your closing disclosure must be digitally signed before you can start your official countdown to closing.
  • Complete your e-closing. Most lenders offer a “hybrid” closing, which means you can digitally sign some documents. However, the promissory note and deed of trust usually require an old-fashioned autograph using a pen.

Not necessarily. Although digital lenders may avoid the overhead costs of your neighborhood bank, they may or may not pass those savings on to you. Automated underwriting systems are often a better fit for borrowers with high credit scores and stable income; computer algorithms can’t make judgment calls for rough patches in your job or credit history.

Ask the lender how you’ll communicate during the mortgage process. The automated systems may cost you a bit of your sanity if you can’t talk to a human being or are subjected to rigid electronic turn times for every question.

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