The housing requests weren't enough to quell the dream of owning a home, but for many, it complicated the process. As a result, more and more homebuyers are turning to the Internet to pay off their mortgages remotely.
According to a 2019 Borrower Insights survey conducted by Ellie Mae, 50% of borrowers preferred lenders that offer digital tools. And 66% of borrowers prefer online applications because they lead to a faster closing.
The Federal Reserve Bank of New York found that subprime lenders reduced mortgage processing times by about 20% compared to traditional lenders. From 2010 to 2016, online lenders shortened the processing time by an average of 10 days. If you're refinancing your mortgage, the online application can shorten the processing time by an average of 14.6 days.
Online mortgage lending tools not only speed up and simplify the application process for consumers, but they also reduce bottlenecks in traditional lending. According to the Federal Reserve Bank of New York, digital mortgage lenders have helped ease capacity constraints, expand lenders' ability to reach more borrowers, and avoid human error.
The best online lenders for 2023
In light of current events and the growing public demand for a fully online mortgage application, we have reviewed the best online mortgage lenders that prioritize customer experience and offer continuous support from application to closing.
- Rocket Mortgage
- better.com
- Paramount Bank
- New American Finance
Rocket Mortgage
Rocket Mortgage is one of the largest mortgage lenders by volume in the United States. The company also named J.D. It has received the highest customer satisfaction score in Power's primary mortgage services survey for ten consecutive years.
Rocket Mortgage is a good bet for tech-savvy borrowers who want a mobile-friendly online app experience with live support. The company claims you can apply for and be approved for a mortgage in less than 10 minutes, but borrowers can complete mortgage or refinance applications at their own pace.
The online Rocket Mortgage app is simple. You will be asked if you want to refinance or refinance a home. If you choose to refinance, you will be asked to enter the address of the property and the platform will pull general data to automatically fill in the required information.
During the application process, you must be prepared to enter personal information about your assets and business. But Rocket Mortgage also speeds this step up by collecting data directly from your bank, so you don't have to waste time manually entering information from your bank statement. The Company may also receive information such as payment slips if your bank has access to it.
If you are self-employed, you must verify and document your income to prove your financial stability. Rocket Mortgage may require you to have a lower DTI and a higher credit score than other applicants.
After collecting your information, Rocket Mortgage creates offers that are tailored to your financial needs and goals.
If you prefer a flexible loan term and fixed interest rate, Yourgage allows eligible borrowers to customize loan terms from 8 to 29 years old.
To be eligible, a borrower must have at least a 620 FICO score, a down payment of at least 3%, and a debt-to-income ratio of no more than 50%, plus enough savings to cover closing costs. Most lenders will not exceed the 45% DTI for borrowers looking for a 30-year maturity.
If you have questions, our mortgage experts are available seven days a week via online chat or phone to assist you.
better.com
Better Mortgage is a digital mortgage lender that offers a variety of purchase and refinances loans. Although Better.com is 100% digital, they personalize your experience by assigning a loan officer that you can contact at any time during the process. Additional support is available most hours of the week via phone, email, and chat.
This lender is perfect for borrowers who prefer an online-only experience, as they don't have any offices in the real world. According to the company, its automated process can deliver quotes in seconds and a pre-approval letter within three minutes. In addition, Better.com offers its own loans and does not charge any fees to the lender, including application fees, commission (brokerage), and origination fees, which can save lenders thousands of dollars.
Better.com also sets itself apart from the competition by offering the Better Real Estate discount program, which is only available in certain states. If you choose a Better Real Estate agent and take out a mortgage through the company, you may qualify for loan loans of up to $2,000.
Paramount Bank
Paramount Bank is a regional bank that serves residents of 11 states in the Midwest, South, and West, but has expanded its online services to all 50 states. The company is a HUD-accredited lender that provides a variety of mortgage and refinancing products, including federally backed loans, mega loans, 203,000 loans (for home rehabs), and conventional mortgages.
Aside from the standard steps for applying for a loan online, Paramount's website has little information about the loan process.
Once you've filled out a basic form that requires some introductory information about your loan, business, and current assets, you'll receive a phone call from a Paramount Loan Officer to review your options.
Based on the information you provide online, the loan officer will review the steps necessary to achieve your goals, whether that includes temporarily delaying your home purchase plans and enrolling in a credit repair program, or continuing with the home purchase or refinancing process.
If you decide to go ahead with the loan application, you will only be asked to provide more information and go through a rigorous loan withdrawal process. Once your application has been approved, the closing can be completed online with an electronic signature so no human contact is required.
It's also worth noting that Paramount hasn't changed its standard qualification requirements, while many competitors have tightened loan eligibility requirements due to the novel coronavirus pandemic. You can qualify for a qualifying loan with a credit score of 680 or an FHA or VA loan with a credit score of at least 620. Paramount also offers a 3% payment program for first-time homebuyers.
As a veteran company, Paramount is specifically dedicated to helping veteran families and does not charge a lender fee for the VA Home Loan Program.
You need to contact the company directly to find out more about the loan products and the only way to do that is to create an account.
New American Finance
New American Funding has grown to be one of the largest family mortgage lenders in the United States since its launch in 2003. - or adjustable rates.
New American financing follows the credit score requirements set by Fannie Mae and Freddie Mac, with a FICO score of 620 for conventional loans and a minimum of 580 for government loans (FHA, USDA, and VA loans). If your credit score is low, New American Funding claims to consider your payment history as a surrogate credit score for evaluating your creditworthiness.
You can apply for a mortgage directly online. The company applies manual underwriting which provides attention to detail and better loan options when evaluating your profile.
The California-based lender is available in most states, with the exception of New York and Hawaii, as of 2021. If you're shopping for a quote, borrowers claim you won't get an advance estimate. Instead, you should submit a direct request to explain their pricing.
How do we choose the best online mortgage lenders?
To find the best online lenders, we've reviewed the products and services these providers feature. We spoke with industry experts, from mortgage brokers and economists to real estate agents and financial advisors with decades of experience, to better understand what consumers look for in a mortgage lender. We have selected our top companies based on the following factors.
Loan types
To meet the needs of every borrower, we have appreciated lenders that offer a wide range of loans, from conventional loans to government-backed loans. We also examined private loan programs, minimum FICO scores, discounts, forgiveness, and debt-to-income ratios.
Online Features
While it used to be complicated to navigate a mortgage application from start to finish, technology has greatly simplified the process. The right digital tools can save you time and money, from pre-qualifying and estimating how much you can borrow, to comparing home values with lenders.
Our top picks include lenders that offer the perfect balance of digital resources and consumer education and support. We appreciate companies that provide accessible online tools such as mobile apps, mortgage learning centers, and calculators for a more versatile experience.
customer experience
When it comes to online mortgages, we prioritize companies with high standards of customer service. The entire digital loan experience should offer as much support as a face-to-face loan application. Studies also show that consumers value human involvement in the application process, and getting the right balance between technology and support staff can speed up the loan process and help borrowers feel more secure. To assess consumer satisfaction, J.D. We looked at the 2019 Power Mortgage Customer Satisfaction Survey.
“Consumers have a say in what happens to their digital experience,” said John Capel, Director of Financial Services for the Power Global Business Team.
financial reputation
CFPB is a government agency that sets rules for corporations to protect debtors from unfair, abusive, or deceptive practices. We also assessed the number of regulatory actions listed for each lender through the National Mortgage Licensing and Registration System (NMLS).