Best Online Mortgage Lending – Despite the mortgage space representing the largest US lending market — with debt sitting at $9.2 trillion — it’s been the slowest to digitize, and incumbents have had little incentive to remove friction from the customer application process.
The customer experience has been hampered by a time-consuming process that requires spending hours filling out an application and gathering documents, a lack of transparency about the status of the process, and uncertainty about what outstanding documentation could be requested later. And with no viable challengers to the status quo, incumbent lenders had little reason to overhaul this process.
Best Online Mortgage Lending – The largest online mortgage companies are:
Quicken Loans was already an online lender, and it now offers an online only interface, a service portal called Rocket Mortgage.
You can fill out an online application and also get access to mortgage advisors.
Through the Rocket Mortgage website or mobile app, users can easily upload financial details and get a loan decision in minutes.
Rocket Mortgage provides fixed- or adjustable-rate home loans, mortgage refinancing, and jumbo loans. You can select the loan and interest rate, and you can e-sign and create the original application without speaking to anyone.
SoFi offers flexible lending options to applicants that would be traditionally rejected. While other lenders are likely to reject applicants based on credit scoring criteria and debt-to-income rations, SoFi will examine disposable income and other indicators of responsible borrowing habits as criteria for loan approval.
Many SoFi borrowers admit they would not have qualified for a home loan without SoFi mortgage and its unique criteria for loan approval. SoFi offers flexible down payments ranging from 10% to 50%, even on jumbo loans.
In just one sitting, SoFi can provide an upfront, loan pre-qualification.
You are an ideal candidate if you are consistently in the high-income bracket, have savings, and a reliable history of making timely payments. Expect to make a minimum down payment of at least 10% of the purchase price for new loans.
Average closing time of 28 days. SoFi requires a minimum loan amount of $100,000.
SoFi does not require PMI on any of its loans, even when the down payment is less than 20%. Further, SoFi does not charge loan origination, application or broker commission fees. In order to get quotes, you have to sign up for an account and provide personal information.
Reali, with its target demographic being millennial, offers an online loan application process that can provide a loan approval in less than an hour instead of usual three days.
Reali is good option for candidates with higher incomes and higher credit scores. Reali evaluates candidates based on credit history, documentation, underwriting and regulatory compliance.
While Reali doesn’t charge a loan origination fee, it adds its costs into the interest rate. Still, there are no upfront origination or broker fees.
Although Reali does not offer government loans, but it offers several flexible options designed to suit you and your set of circumstances.
Like most of its competitors, you can do it all online – get a free credit check, upload and sign your documents electronically, and track the progress of your loan through the user dashboard.
Better.com is a digital mortgage lender — the new breed of home loan providers without a network of brick-and-mortar offices. The focus is on 24/7 service through technology and on-demand human assistance.
Found at Better.com, the lender has been working to simplify mortgage loans since 2014. Here’s how Better.com stacks up among today’s high-tech mortgage lenders.
Better.com handles purchase and refinance loans, with a variety of products available — from loans with 3% down payments for first-time home buyers, to 10%-down jumbo loans with no mortgage insurance.
The company says about one in three Better.com borrowers are first-time home buyers, and 72% of all Better.com home buyers put less than 20% down.
The lender says it will work with borrowers to find location- or income-based loan discounts and offers mortgage products to borrowers with out-of-the-ordinary situations: restricted stock income, Airbnb earnings, those who are self-employed or have student loan debt.
LendingTree has quickly become one of our favorite comparison tool for online mortgage lenders because of how quick and easy it is to get started – and how painless they make the process.
What I like about them, instead of having to go to multiple different lenders and enter your information to get a quote, you can get multiple offers right on their site.
They make the process easy to enter your information, and in about 5 minutes you’ll know what you’re potentially approved for.
Bank of America
Ideal for borrowers who prefer a traditional bank. Bank of America offers several loans with low down payments, and existing customers may get a discount on fees.
It’s one of the largest banks in the world, but Bank of America doesn’t want to be known just for its mammoth size. Then again, being one of the biggest does have its advantages, especially in mortgage lending.
Bank of America provides multiple loan options, high-tech customer service and a step-by-step walk-through of the underwriting process as it works to make getting a mortgage easier, says John Schleck, senior vice president for centralized and online lending.
The Charlotte, North Carolina-based lender offers a wide range of purchase and refinance loans, including 15-, 20- and 30-year fixed-rate loans and adjustable-rate mortgages with 5/1, 7/1 and 10/1 terms. It also issues jumbo loans up to $5 million and government-insured mortgage products such as Federal Housing Administration (FHA) and Veterans Affairs (VA) loans.
Bank of America also offers several programs designed to make homeownership more affordable for lower income and first-time home buyers, including:
Up to $10,000 in down payment and closing cost assistance.
Up to $7,500 in lender credit for expenses like title insurance and recording fees.
Two mortgage products with 3% minimum down payments: the Affordable Loan Solution mortgage and the Freddie Mac Home Possible mortgage.
Ideal for anyone who appreciates smartphone app service, support and time savings. Rocket Mortgage offers a fully digital home loan experience with a large variety of mortgage products.
Rocket Mortgage is the online and mobile-friendly mortgage application process developed by Quicken Loans. With on-demand assistance from licensed mortgage advisors available with just a tap, Rocket helps you go through the loan process at your own pace.
Quicken Loans’ Rocket Mortgage was launched in 2015 in a blast of commercials touting push-button convenience at orbit-achieving speed. It was eye-catching and head-spinning. It certainly rocked the world of mortgage lenders, and it still leads the industry in loan technology.
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Best Online Mortgage Lending