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Updated November 2021
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BestReviews spends thousands of hours researching, analyzing, and testing products to recommend the best picks for most consumers. We only make money if you purchase a product through our links, and all opinions about the products are our own. Read more  
BestReviews spends thousands of hours researching, analyzing, and testing products to recommend the best picks for most consumers. We only make money if you purchase a product through our links, and all opinions about the products are our own. Read more  
BestReviews spends thousands of hours researching, analyzing, and testing products to recommend the best picks for most consumers. We buy all products with our own funds, and we never accept free products from manufacturers.Read more 
Bottom line
Pros
Cons
Best of the Best
AmeriSave Home Refinancing
AmeriSave
Home Refinancing
Learn More
Customer Favorite
Bottom Line

This is a trusted company that works with homeowners in nearly every state.

Pros

This company has options for both refinancing and buying a home. They offer multiple types of loans, including conventional, FHA, and more. Plus they have an online process for quotes. They are able to give you the help that you need with home refinancing quickly compared to other companies.

Cons

They do not serve the state of New York.

Best Bang for the Buck
Better Home Refinancing
Better
Home Refinancing
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Easy to Use
Bottom Line

A simpler way to refinance your home with an easy online process.

Pros

Better has a great setup on their website that is user-friendly and easy to navigate. The company focuses on making your refinancing process simple and is available for fixed and adjustable-rate mortgages, refinancing, FHA loans, and more. They will work hard to get the right plan to fit your refinancing needs.

Cons

There have been some complaints about customer service.

Rocket Mortgage Powered by Quicken Loans
Rocket Mortgage
Powered by Quicken Loans
Learn More
Trusted Brand
Bottom Line

A large lending company that is perfect for anyone looking to refinance their loan.

Pros

This company is trusted by millions and has user-friendly calculators on their site for getting the numbers for home refinancing, mortgages, and more. This company is the biggest home refinance company in the U.S. Has been awarded multiple times by J.D. Power for customer satisfaction.

Cons

The process for refinancing can take longer than some homeowners would like.

Loan Depot Home Refinancing
Loan Depot
Home Refinancing
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Simple Yet Solid
Bottom Line

A newer home refinancing company that has many locations around the country.

Pros

They feature fixed-rate, FHA, VA, and home refinancing options. This lender offers a user-friendly website, but rates must be handled in person. Great for narrowing down your options. Solid customer service even when you just need simple questions answered.

Cons

It can sometimes be a long process to get your home refinanced through this company.

New American Funding Home Refinancing
New American Funding
Home Refinancing
Learn More
Best for Beginners
Bottom Line

A great company that makes refinancing your home a quick and efficient process.

Pros

This company has refinancing options to fit a majority of homeowners. They offer help in navigating the refinancing process and will get you the best option to suit your needs. Users love that this company may be able to help you even without great credit.

Cons

There are a couple of states this company does not service.

HOW WE TESTED

We recommend these products based on an intensive research process that's designed to cut through the noise and find the top products in this space. Guided by experts, we spend hours looking into the factors that matter, to bring you these selections.

36
Models
Considered
206
Consumers
Consulted
28
Hours
Researched
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Choosing the best mortgage company

Last Updated February 2023

For lots of people, buying a home comes part and parcel with the American dream. And under most circumstances, searching for the perfect new home can be a fun experience. But finding the right mortgage company to finance that home can be a little tricky.

If you sign on with a quality mortgage company, the home-buying process should proceed like a dream. A great mortgage company simplifies the experience for you. It helps you figure out how much house you can afford, and perhaps more importantly, it helps you sort out the confusing avalanche of numbers and jargon that accompany any home purchase.

If you sign on with a bad mortgage company, however, you’re in for a torturous ordeal. The loan process will likely take much longer than it should. Extra phone calls, red tape, and paperwork will leave you feeling burdened rather than elated by the purchase of your new home.

Before trying to obtain a mortgage, make sure your credit score looks as good as possible. Pay off high-interest loans to boost your credit score, if possible.

At BestReviews, we want our readers to find just the right mortgage services company for their needs. We don’t want you to waste your money or time struggling with a sub-par mortgage service.

That’s why we compiled this shopping guide. We understand that consumers may need a little help getting the information they need about the mortgage acquisition process.

With the right mortgage in hand, you can focus on finding your dream home rather than sweating out the numbers.

So please read on to learn more about finding the best mortgage company for your next home-buying venture.

Find a Mortgage Company Service
We’ll match you with the right company that knows exactly what you need.

Mortgage preparation

Before choosing a mortgage company, you can take a few steps to speed up the home-buying process. Being prepared ahead of time will impress your loan officer, too.

First, determine whether you want to use your loan money to refinance an existing mortgage or buy a new home.

If you’re refinancing

If your goal in finding a mortgage company is to refinance a current mortgage, first look at your current interest rate. Find out the length of the existing loan and the payout amount you owe. You’ll be able to negotiate more effectively with this information in hand.

If you’re purchasing

If you’re seeking a mortgage in order to buy a house, don’t look for a house first. Instead, find out the loan amount for which you qualify.

You can do this by gaining “pre-approval” for a certain loan amount from a mortgage company service.

By doing this, you won’t waste time looking at homes outside of your price range.

Find a Mortgage Company Service
We’ll match you with the right company that knows exactly what you need.

Gathering your documents

To qualify for a mortgage, you will need to produce documents that verify your financial situation. Lots of them.

Collect your last two or three tax returns, recent pay stubs, and proof of any other income streams. Those are the basics.

Depending on the lender and your personal situation, you may have to produce other documents as well.

Researching mortgage companies

Start looking for the right mortgage company with an online search. You can find information about rates, types of loans, and service areas on the internet.

Bear in mind that the mortgage company offering the lowest interest rate may not necessarily be the best mortgage company for you. Depending on your needs, you’ll want to evaluate a few other aspects of a potential lender (beyond interest rate) before proceeding with a loan.

Loan amount

Some mortgage companies have a maximum amount they will lend on a property. Others will only handle certain loan amounts if government programs or agencies are involved.

DID YOU KNOW?

Some mortgage companies allow you to upload digital copies of your documents. This is a far more convenient option than printing them.

Down payment

The down payment is the percentage of the purchase price which you pay upfront.

Some mortgage companies will only accept a down payment of 20% or higher, while others will negotiate this percentage.

You can make a lower down payment if you’re willing to pay for private mortgage insurance, also known as PMI.

Find a Mortgage Company Service
We’ll match you with the right company that knows exactly what you need.

Points and fees

Some mortgage companies make you pay points, which involve a percentage of the overall loan, or other fees. On a $150,000 mortgage, one point would cost you $1,500. Some lenders allow you to roll these fees into the overall loan, but others want you to pay them upfront.

Loan length

A 30-year mortgage is the standard loan length. However, some mortgage companies offer loan lengths ranging from 10 to 40 years. Find the company that offers the right loan length for your needs.

Type of property

Some mortgage companies excel in the financing of certain property types. For example, if you want to upgrade an older home and roll the renovation costs into the mortgage, certain mortgage companies specialize in this type of loan.

Turnaround time

You’ll want to know how fast the mortgage company completes tasks such as pre-approval, appraising a property, and closing. You certainly wouldn’t want to lose a property because your chosen mortgage company is too slow on pre-approval, for example.

Adjustable vs. fixed

Find a company that will offer you the type of rate that works best for your situation.

A fixed-rate mortgage locks the interest rate for the length of the loan.

An adjustable-rate mortgage is slightly different; the interest rate you pay fluctuates over the length of the loan.

Find a Mortgage Company Service
We’ll match you with the right company that knows exactly what you need.

Common mistakes to avoid

Most of the below home-buying errors can be avoided with just a little bit of work on your part.

Mistake #1: You fail to shop around

You wouldn’t go to a car dealership and pay the list price immediately. Instead, you’d browse other dealerships and maybe negotiate a deal. (After all, you could save several hundred dollars in the process.) Do the same thing with your mortgage company. By shopping around for the right product for your needs and negotiating the best rate, you could shave several thousand dollars off the loan.

Don’t be afraid to try to negotiate a lower rate or fewer fees. Try playing different lenders’ rates against each other.

Mistake #2: You don’t ask enough questions

Mortgage companies and brokers use a lot of jargon and acronyms.

Don’t feel embarrassed if you don’t understand something. You need to know exactly what everything means in order to avoid problems down the road.

DID YOU KNOW?

Trying to decide between an adjustable-rate mortgage (ARM) and a fixed-rate mortgage? Both have their pros and cons. There are several free online calculators to know the better option for you.

Mistake #3: You fail to disclose everything initially

Some people make an honest mistake in omitting something from the mortgage company in the initial meeting.

Try to be as thorough as you can with the broker at the first meeting. If you omit something, the mortgage company will find it eventually, and you may have to start the entire home-buying process over again.

Find a Mortgage Company Service
We’ll match you with the right company that knows exactly what you need.

Tips

Each mortgage service company you encounter may offer you a different interest rate. By shopping around and pitting one company against another, you’re more likely to receive the best mortgage for your needs.

FAQ

Q. Why am I forced to use private mortgage insurance (PMI)?

A. Mortgage companies often force borrowers to pay for PMI, or private mortgage insurance, when they have less than 20% equity in the home. PMI can add an additional one percent in annual costs to your mortgage payment. To avoid PMI, either come up with a minimum 20% down payment on the property or try to negotiate removal of the PMI.

Q. Should I lock in an interest rate?

A. Some mortgage companies allow you to lock in an interest rate after you’re pre-approved. This may be a good idea, as it protects you from rises in rates as you’re looking for a home. Find out how long the mortgage company will hold your locked rate. Additionally, make sure that if rates drop during your house-hunting period that you will receive the lower rate rather than the higher, locked-in rate.

Q. What amounts appear in the monthly payment?

A. Your monthly mortgage payment consists of an interest payment and a loan principal payment. For most people, the mortgage payment also includes home insurance costs and property taxes, as the mortgage holder pays these. Some people will have a PMI payment included in their monthly payment, too. Your mortgage company will be able to explain all of these costs to you.

Buying a new home is an exciting yet daunting process. The right mortgage company will help you through the experience, simplifying jargon and offering you the best possible package of terms and services. Don’t settle for second best; use the information provided in this article to guide your search for the right mortgage company.