What Is a Mortgage?
A mortgage, in simple terms, is a home loan provided by a lender, typically a bank or mortgage company, to help you purchase property or other real estate. The mortgage process is a commitment to repay the loan amount over a specific period, usually 15 to 30 years.
During this time, the lender holds the property itself as collateral, ensuring the loan is repaid as agreed upon. Generally, mortgage loans come with lower interest rates than standard loans, since the lender can take your property if you fail to make payments on your loan.
How Do Mortgage Loans Work?
A traditional mortgage loan is a house mortgage (loan) used to purchase or build a new home that's backed by the property you're buying. Owning a mortgage loan means that if you are ever unable to pay off your mortgage, your home can be foreclosed (legally taken and sold) by the mortgage company.
» Many of our top-rated mortgage lenders also offer refinancing services if you ever find yourself falling behind on payments.
Understanding the Different Types of Online Mortgage Loans
| Primary Mortgage Loan | A primary residential mortgage is a loan secured by the borrower's main residence, used to purchase or refinance that home. |
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FRMs | Fixed-Rate Mortgage rates must remain constant throughout the loan's term, which means stable monthly payments. |
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ARMs | Adjustable-Rate Mortgage rates are fixed for an initial period, typically at a lower rate, then rise and fall with market changes. |
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FHA Loans | Federal Housing Administration loans often require lower down payments with flexible qualification requirements. |
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VA Loans | VA loans, available to eligible veterans and service members, offer competitive interest rates and zero down payment. |
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House Loans | House loans, offered by banks, credit unions, and other financial institutions, are used only to purchase or build a new home and don’t use existing property as collateral. |
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Private Home Loans | Private home loans are similar to house loans, instead private home loans are provided by non-institutional lenders, offering more personalized terms and flexibility. |
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Jumbo Home Loans | A jumbo home loan is a mortgage for amounts that exceed the limits set by regulators, used for purchasing high-value properties, and often requiring higher credit scores. |
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Conventional Mortgage Loan vs Private Mortgage Loan
A conventional mortgage is a house mortgage, typically offered by banks, credit unions, and other financial institutions that follow guidelines set by US government-sponsored enterprises.
A private mortgage loan, offered by private mortgage lenders, offers less strict requirements, making them accessible to borrowers interested in more flexible terms or less-than-ideal credit scores.
Apply for a Mortgage Online
When you apply for a mortgage loan online, you can access your online mortgage application and from anywhere, and go back to review your information as often as you need.
Here are some tips to follow when you're looking to apply for a house loan with top mortgage lenders:
- Check Licensing
- Make sure you're viewing a licensed mortgage loan originator. To verify a lender's license status, check their National Mortgage Licensing System (NMLS) ID at the NMLS website. (Available under each company's logo on our page.
- Compare Multiple Lenders
- Once you’ve selected the best home mortgage lenders for you, don’t be afraid to fill out more than one online mortgage loan application. This can give you a better idea of average rates and help you find the best mortgage loans out there.
- Choose a Loan that Works for Now
- Ideally, you should apply for a home loan that is tailored to your current financial situation and not your future plans.
- Review Terms Carefully
- Regulation of private mortgage lenders varies, so it's important to review your loan terms in detail to be sure you're not missing any important information.
» For guaranteed reputable lenders, view our best-rated mortgage lenders and apply for a mortgage loan online today with a verified lender.
Everything You Need for an Online Mortgage Loan Application
When you've narrowed down your list ready of the best home lenders you're interested in checking out and you’re ready to apply for mortgage online, be sure to get the following information ready for a quick home mortgage application –
Personal information (Social Security number) • employment history • proof of income (W-2, tax returns) • any debt information (credit cards, student loans) • mortgage property details (if applicable).
Key Features of Good Mortgage Lenders
Loans from private mortgage lenders can offer more flexible terms for people unable to secure traditional financing. Our list of the best home mortgage lenders can help to narrow down your choices, but there are additional things you can consider to help make your decision easier.
Review which of these key features of mortgage loan lenders are most important to you to get some insight into what exactly you’re looking for in your mortgage lender.
Low Closing Costs and Interest Rates – Working with an online mortgage lender means money saved on brick-and-mortar costs can can come back to you in the form of lower closing costs and interest rates.
User-Friendly Online Platform – The best online mortgage lenders should offer a hassle-free application process, saving you wasted time and unnecessary effort.
Variety of Loans – Whether you’re looking for a conventional mortgage, a home loan, a jumbo home loan, or something else, it’s important that your mortgage lender has a good variety of loan services.
Good Customer Support – Good customer service from a mortgage company means a smoother, more reassuring process and better support when you need it.
Reputable – It’s crucial that you pick a legitimate, licensed mortgage loan originator. A licensed mortgage loan originator helps borrowers find home loans while adhering to legal requirements.
How to Find the Best Online Mortgage Lenders
The best place to get a mortgage loan, whether online from private mortgage lenders or in-person at a bank, depends on what you need. Online mortgage loans might be a better choice than traditional mortgage loans if you're looking for low rates and convenience.
Since online lenders typically have lower overhead costs and adviser fees than brick-and-mortar lenders, you may be able to get a better deal. As for convenience? It’s all about what you prefer—Quick online communication or face-to-face meetings with your mortgage lender.
Additional Resources
Take time to compare the best mortgage lenders and find the perfect home loan for your financial situation.
» Company Comparisons – Refinance
Check out our best refinancing lenders 2024 to lock-in better rates on an existing mortgage or secure more affordable payments.
» Mortgage Resources – Shop Around or Learn More
Explore our guide for first-time homeowners and our best mortgage loan companies reviews before you apply for a house loan.
» Our Selections – Best-Rated Mortgage Lenders
Our expert analysts searched for the best place to get a mortgage loan, and the list at the top of this page includes their top choices of the best mortgage loan companies for 2024. Explore our page to learn more about the findmortgages.com ranking process and methodologies, as well as how we share information about our best online mortgage lenders with you.
