Credit: Images by Getty Images. Illustrations by Issia Davis/Bankrate
With online mortgage lenders, the entire application process often takes place without face-to-face interaction. Online mortgage companies do not have branch locations. Instead, they are run only online. We reviewed over 80 lenders on affordability, availability and borrower experience to build a list of the best online lenders. This is the top pick for 2025.
Best Online Mortgage Lenders of 2025
| Online mortgage lender | Bankrate Score | Minimum credit score | Minimum down payment |
|---|---|---|---|
| Tomo | 4.9 | 580 For a traditional loan | There is no 3% on traditional loans, 3.5% on FHA loans, and no VA loans |
| Better | 4.8 | 620 for traditional loans, 580 for FHA loans, 620 for VA loans | There is no 3% on traditional loans, 3.5% on FHA loans, and no VA loans |
| Zillow Home Loans | 4.8 | 620 traditional loans | There is no 3% on traditional loans, 3.5% on FHA loans, and no VA loans |
| Sage Home Loan | 4.7 | 620 for traditional loans, 580 for FHA loans | There is no 3% on traditional loans, 3.5% on FHA loans, and no VA loans |
| Bison State Bank | 4.6 | 620 for traditional loans, 580 for FHA loans, 580 for VA loans, 580 for VA loans | There are no 3% on traditional loans, 3.5% on FHA loans, and no VA and USDA loans |
| lowrates.com | 4.6 | 620 for traditional loans, 700 for jumbo loans, 580 for FHA loans, 500 for VA loans, 500 for VA loans | In the traditional case, there is 3%, 3.5% on FHA loans, and there is no VA loans |
Can I get a mortgage completely online?
Yes, you can get a mortgage completely online. In the traditional lending process, borrowers must visit branches where they will apply for a mortgage. However, online lenders allow borrowers to shop for mortgages, complete applications, upload documents, and respond online to underwriting queries. Some lenders offer electronic closings.
How to find the best online mortgage lender for you
Many borrowers are drawn to online mortgage lenders because of convenience, efficiency and speed. These are important factors to consider when looking for the best online mortgage lender, but it’s also important to spend time comparing the costs of your individual situation and reading reviews of mortgage lenders to learn what to expect from the online experience. When comparing digital lenders, look for:
- Types of loans they offer
- Credit and Down Payment Requirements
- Origination fee
-
Rate Lock and other perks
- Available Support Options
It should be noted that more traditional lenders usually also have online features these days.
Are online mortgage lenders lower fees?
Some online lenders may advertise lower mortgage rates than brick-and-mortar stores due to their less overhead. However, that does not necessarily mean lower annual rates (or APRs). Interest and fee costs. The rates you offer are more relevant to your credit and financial profile, as well as general market trends, as well as the duration of your mortgage repayments. For example, the 30-year mortgage rate tends to be higher than the 15-year mortgage mortgage. You may be rewarded for shopping online or with at least three other different mortgage lenders.
Pros and Cons of Online Mortgage Lenders
Getting a mortgage is one of the most consequential decisions in your life. In some cases, you may be able to repay the same loan for the next 30 years. With that in mind, it is important to understand the advantages and disadvantages of choosing a full-text mortgage experience.
Benefits of an online mortgage lender
- speed: Many online mortgage lenders use their own systems and tools to help accelerate the loan approval and underwriting process.
- In many cases, they charge a fee. Some online mortgage lenders can save money when closing by lowering fees.
- Potentially low rates: Some online mortgage lenders run cheaper businesses, which could lead to lower interest rates.
Cons of an online mortgage lender
- Limited loan options: If you are looking for a USDA loan, you may be disappointed to refinance or obtain something other than a traditional mortgage.
- Lack of face-to-face support: While many online mortgage lenders offer phone-based customer support, applying for a mortgage can be an overwhelming process. If you want to talk directly with the representative, it is better to have a lender with a branch location.
- It may not work in unique situations: The algorithm can speed up along the borrower’s process with a clear financial situation, but for example a standard W-2 employee with a stable salary – it’s not great if your finances are more complicated.
Next steps to applying for an online mortgage
Step 1: Strengthen your credit score – Before applying for a loan, take a close look at your credit history and do your best to improve your score by paying back any outstanding balances. They also resist undertaking any further debts or applying for other loans or credit lines.
Step 2: Set a budget – Before you go shopping, it’s important to understand how much you can get. Please note that you may have been pre-approved for more money than you can comfortably afford.
Step 3: Understand your mortgage options – There are several different types of mortgages. Know what they are and what you want.
Step 4: Compare some lenders – Get the best deals on rates, fees and terms at rate shops with at least 3 different lenders. However, it’s not just the rate. Do a research on these mortgage lenders and see what other borrowers have to say about their experiences.
Step 5: You’ll be approved in advance for your mortgage – Apply for pre-approval of your mortgage using multiple lenders to compare offers and obtain the exact loan price for your particular situation. Preapproval shows sellers that you are a serious shopper and you have financial support to bid on your home.
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