In the digital age, securing a mortgage has become more convenient than ever, thanks to the emergence of online mortgage lenders.
As the financial landscape continues to evolve, prospective homeowners are increasingly turning to the internet to find the best deals on their mortgage loans. However, a common concern arises: Are online mortgage lenders safe?
In this article, we'll delve into this question and explore the four best online mortgage lenders available, per CNBC.
Are Online Mortgage Lenders Safe?
There are plenty of mortgage lenders online, and they are generally legit. But as with any business transaction, it is important to do your due diligence and check whether it complies with federal regulations.
Typically, reputable online lenders use secure encryption technology to protect sensitive information, ensuring that your personal and financial details are safeguarded. Additionally, regulatory bodies oversee these lenders to ensure compliance with industry standards.
Best Online Mortgage Lenders
Ally Home (No Lender Fees)
Ally Home is a standout choice for those seeking transparency in their mortgage journey. One of its key features is the absence of lender fees, providing borrowers with a clear understanding of their financial commitment. Ally Home also boasts a user-friendly online interface, making the application process seamless and stress-free.
Loan Types: Conventional loans, HomeReady loan, and Jumbo Loans
Loan Terms: 15 to 30 years
Credit Score Needed: 620
Flagstar Bank Loans (Wide Range of Loan Options)
Flagstar Bank Loans caters to the diverse needs of homebuyers by offering an extensive range of loan options, including some niche terms. Whether you're a first-time homebuyer or looking for a jumbo mortgage, Flagstar Bank Loans provides flexibility to suit various financial situations.
Loan Types: Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, adjustable-rate mortgages, fixed-rate mortgages, construction loans, professional loans, and Community Loans
Loan Terms: 8 to 30 years
Credit Score Needed: 580 to 620
LoanDepot (Best for Refinancing Mortgages)
For homeowners looking to refinance their mortgages, LoanDepot is a top contender. With competitive rates and a streamlined application process, LoanDepot simplifies the refinancing experience. This platform is best for people looking to refinance their mortgage down the line, such as when interest rates drop.
Loan Types: Conventional loan, FHA loan, Jumbo loan, VA loan, renovation loan, HELOC and adjustable-rate mortgage (ARM)
Loan Terms: 10 to 30 years
Credit Score Needed: 500 to 580
Rocket Mortgage (Low Down Payment Options)
Rocket Mortgage by Quicken Loans is a leader in the industry, particularly for those seeking to put less than the usual 20% down payment on their home purchase. The platform offers a One+ program that allows eligible borrowers to put as little as 1% down on a conventional loan for a home purchase.
Loan Types: Conventional loans, FHA loans, VA loans and Jumbo loans
Loan Terms: 8 to 29 years
Credit Score Needed: 580 to 620
