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Accurate as of November 21, 2024

Best Mortgage Prequalification November 2024

Lock in a low monthly payment while mortgage rates continue to drop. Get prequalified online to learn how much you're eligible to borrow, and to receive a personalized quote estimate in minutes.

Get Prequalified for a Mortgage Online

Online mortgage prequalification is offered by nearly all lenders, providing a ballpark estimate of how much you can afford to spend on a home. Simply visit the lender’s website, provide some basic, self-reported financial details, and receive your estimate instantly.

Prequalification is a quick and easy step that doesn’t impact your credit score.

Since prequalification doesn’t commit you to a specific loan, it’s wise to shop around and get prequalified with multiple lenders. This allows you to compare offers and find the best deal before you apply for a mortgage.

Preapproval is a more thorough process than prequalification.

While you can switch lenders after being pre-approved, the process does require a hard credit check, so it’s typically advised to get preapproved with the lender you want to apply for a mortgage with. Not sure whether preapproval vs. prequalification is right for you? Learn more.


What’s on This Page?

  1. Featured mortgage lenders (above)
  2. What is a mortgage?
  3. Common mortgage loans
  4. Mortgage financing options
  5. How to find the best lender
  6. How to apply for a mortgage loan
  7. Mortgage resources
  8. FAQ

What is a Mortgage?

A mortgage is a loan used to purchase property. It involves a commitment to repay the loan typically over 15 to 30 years. During this time, the lender holds the property as collateral, meaning the property can be taken if regular payments are not made.

Millions of Americans use mortgage loans to afford their homes when paying the full price in cash isn't an option. Researching lenders soon before you close on a house can be a smart way to determine your price range and see if you'll be preapproved.

How to Choose a Mortgage Lender

Selecting the right lender san save tens of thousands over the life of a loan. The government, banks, credit unions, brokers, and online lenders can all provide mortgages. Comparing rates from multiple lenders is typically in your best financial interest.

Best mortgage lender reviews ➜

Mortgage Loans

Loan Types

  • Residential Mortgage Loan
    Best for purchasing a primary residence
  • Jumbo Mortgage
    Best for high-value properties that exceed conventional loan limits
  • FHA Loan
    Best for poor-credit or first-time homeowners
    See loans ➜
  • Investment Property Loan
    Best for investing in real estate or rental property investments
  • Construction Loan
    Best for ground-up construction builds

Financing Options

  • Conventional Loan
    Best for borrowers with a steady income and good credit
  • Bridge Loan
    Best for short-term financing between the sale of a home and the purchase of a new one
  • No Closing Cost Mortgage
    Best for minimizing out-of-pocket expenses
    (roll the closing costs into the loan balance)
  • Balloon Loan
    Best for borrowers who expect to refinance or sell the property before payment is due
    (lower initial payments with a large fee the end)
  • Refi Loan
    Best for lowering monthly payments on an existing mortgage or accessing cash
    Learn more ➜

How to Find the Best Mortgage Lenders

Finding the best mortgage companies near you

Searching for the best mortgage companies is an important step in the home-buying process. The right lender can make a significant difference in securing the best mortgage loans for your needs.

Look for lender reviews with positive ratings and high customer satisfaction, and use online lender sites to compare different rates and fees to find the most cost-effective option.

Getting the best rate

Fixed-rate and adjustable-rate payment plans are each suitable for different financial situations and homeownership goals. The biggest factors that affect your individual rate include credit score, loan amount, down payment, and market conditions.

Consider using the rates you qualify for online as leverage for negotiation with other lenders, credit unions, brokers, or banks.

How to Apply for a Mortgage Loan

A mortgage application includes information about the borrower's financial situation, income, assets, debt, credit, and employment history, which lenders use to determine the applicant's eligibility for a home mortgage.

Online lenders typically offer faster approval times, often providing pre-approval within minutes and full approval within a few days to a week. A traditional bank pre-approval can take a few days and full approval potentially can take several weeks.

Steps to Apply

  1. Compare Lenders
  2. Determine Your Budget
    • Evaluate your income, expenses, and savings
    • Get prequalied to view your personalized rate and learn how much you can borrow in minutes
  3. Complete Your Application
    • Submit the necessary documents including pay stubs, bank statements, tax returns, etc.
  4. Close the Loan
    • Review and sign the closing documents
    • Consider consulting with a financial advisor before finalizing your terms

Home Mortgage Resources

  • Calculating your mortgage rate
    Credit score, loan amount and terms, down payment, market conditions, and more can affect your individual rate.
    Learn more.
  • Credit score and mortgage applications
    Your credit score will affect your loan eligibility and interest rates. Generally, higher scores lead to lower rates. If your credit score is poor, there are options available including FHA Loans, VA Loans, online lenders, or applying with a good-credit co-signer.
  • Improving your likelihood of approval
    Improving your credit score, saving for a larger down payment, and reducing your debt-to-income ratio can all help increase your chances of getting approved for a mortgage.
  • Best banks for mortgages
    While the answer varies based on individual needs, the best banks for mortgages typically offer competitive rates, excellent customer service, and various loan options. Consider both national banks and local credit unions.
  • Home improvement loans
    Home loan lenders can provide funding for home improvements, debt consolidation, or other major expenses.
  • Access home equity
    Home equity lenders provide a flexible, revolving line of credit based on your home's total equity. Similarly, HELOC lenders offer quick access to equity as cash in the form of one lump sum payment.
    Learn more ➜

How We Rank?

Learn more about how findmortgages.com rankings are determined.

Frequently Asked Questions (FAQ)

A mortgage loan is used to purchase a home or real estate property. It involves an agreement where the borrower repays the loan over a set term, typically 15 to 30 years. The loan is secured by the property, which means the lender holds it as collateral until the mortgage is fully paid off. The borrower repays the loan through monthly payments, which include both principal (the loan amount) and interest.
Securing a mortgage loan typically takes between 30 to 45 days from start to finish. The process includes pre-approval, application submission, underwriting, appraisal, and closing. If you need to secure a mortgage loan as fast as possible, online lenders are a great option. Online lenders can process and approve loans in as little as 15 to 30 days, thanks to streamlined digital applications and quicker approval processes.
Your credit score plays a key role in determining both your mortgage eligibility and the interest rate you'll receive, accounting for roughly 34% to 40% of the decision-making process. Generally, higher credit scores result in more favorable terms and lower interest rates. If your credit score is on the lower side (around 620 or less), there are still plenty of options available. Many online lenders offer more flexible credit requirements, and applying with a co-signer who has a strong credit score can also improve your chances of securing better loan terms.
To improve your chances of getting approved for a mortgage loan, focus on raising your credit score by making timely payments and reducing any unpaid balances on your card(s). Lenders also prefer a lower debt-to-income (DTI) ratio, typically below 43%, as it shows financial stability. Saving for a larger down payment and maintaining stable employment can further strengthen your application. To speed up the approval process, ensure that all documents you submit are accurate and up to date.
To secure the lowest mortgage rates, it's important to maintain a high credit score and keep your debt-to-income (DTI) ratio low, as these factors demonstrate financial responsibility to lenders. Lenders also assess your income, employment history, and the size of your down payment when determining your eligibility. If your financial profile is lacking in one or more areas, applying with a co-signer who will share responsibility for the loan can help boost your chances of approval and possibly lead to better terms.
Pre-approval is a process where you self-report your financial details, such as income and debt, to get an estimate of how much you might qualify for without a hard credit check. It provides a personalized loan estimate and potential interest rate, helping you compare offers from different lenders and determine what you can afford. Pre-approval is a great first step before fully applying for a mortgage, as it allows you to shop around and better understand your options without impacting your credit score.
When applying for a mortgage loan, lenders will use the following documents to assess your financial health and determine your eligibility for a mortgage loan: PROOF OF INCOME (pay stubs, tax returns W-2s or 1099s) • EMPLOYMENT VERIFICATION (a letter or workplace contact) • BANK STATEMENTS (savings and/or checking account balances and other assets) • CREDIT INFORMATION (lender will conduct a credit report check) • DEBT INFORMATION (current debts and/or other outstanding loans) • PROOF OF IDENTITY (driver's license or passport and your Social Security number).
Start by researching online and reading reviews to check the lender's reputation. Then, shop around by getting preapproved with multiple lenders to compare rates. (Preapproval should not impact your credit score, it's simply a preliminary loan and rate estimate). Don't hesitate to ask questions about the loan process and fees. Local real estate agents can also provide recommendations based on their personal experience with mortgage lenders.
If you're facing challenges with your mortgage payments, there are options to explore. Many homeowners refinance their mortgage to modify their loan terms or secure a lower rate if the market has changed (though there's typically a 6 month waiting period from after you close to when you can refinance). Additionally, you can contact your lender to discuss assistance programs like forbearance and loan modification.
You should consider refinancing your mortgage when it can help you achieve a financial goal, such as lowering your monthly payments, reducing your interest rate, switching from an adjustable-rate to a fixed-rate loan, or accessing your home’s equity. It's generally worth considering refinancing if current interest rates are significantly lower than your existing rate (around 0.5% to 1% or more) or if your credit score or financial situation has improved since you took out the loan. You should always factor in the closing costs associated with refinancing before signing any paperwork to ensure it’s a cost-effective move.