Benzinga's Mortgage Lender Review Methodology
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Choosing a mortgage lender is stressful, which is why Benzinga is here to help. We’re trusted by over 25 million readers for advice and news on stocks, investing, insurance, and of course, mortgages.
To thoroughly evaluate lenders, we created a multi-point methodology featuring the things that matter most to homebuyers: rates, fees, loan options, customer service, credit score, and the application process.
We’ve evaluated the best mortgage lenders for HELOCs, folks with bad credit, self-employed borrowers and tons more. Want to see a breakdown of our scoring process? Check it out below.
Category Breakdown
- Rates and Fees: 25 points
- Loan Options: 20 points
- Customer Service: 20 points
- Application Process: 20 points
- Credit Scores: 15 points
Rates and Fees: 25 points
When evaluating a mortgage lender, rates and fees are arguably the most important component (since they directly affect the monthly cost for the buyer), hence why it’s weighted the most heavily of all the categories. The ‘rates and fees’ section evaluates the competitiveness of the lenders' rates and the transparency of their fees.
Other things we consider within this category that weigh into our final score: discount points, penalty fees and fee caps.
- Competitive Rates: 10 points
- Transparent Fee Structure: 10 points
- Discount points, penalty fees, and fee caps: 5 points
Loan Options: 20 points
When evaluating a mortgage lender, Benzinga examines the specific types of loans that the provider offers. This includes conventional loans, FHA loans, VA loans, jumbo loans, and specialized loans (non-conventional loans).
Additionally, a lender offering better term flexibility, refinancing options, first-time homebuyer programs, or adjustable-rate mortgages (ARM) is another plus in this category.
If a lender has all of the basic loan types plus various non-conventional options, they will score at the top end in this category.
- Purchase and refinance: 5 points
- Fixed and adjustable: 5 points
- USDA, VA or FHA loans: 5 points
- Home equity loan or home equity line of credit: 5 points
Customer Service: 20 points
Quality customer service can significantly impact a borrower’s experience. This category assesses the availability and helpfulness of customer support. We consider factors like the hours support is available, methods of contact, multi-language support, and response time from lenders.
- Customer Support Helpfulness (reviews, responsiveness, language options): 10 points
- Customer Support Availability (hours, channels): 5 points
- Response time (under 24 hours): 5 points
Application Process: 20 points
An easy and convenient application process is crucial for borrowers looking for a mortgage lender. This category assesses the availability of online applications, mobile app functionality, intuitiveness of the process, and the speed of the closing. Additionally, if the lender offers guidance and support before, during, and after the process, they will score highly in this category.
In this case, guidance and support may look like live chat options and providing educational articles about getting a mortgage.
- Closing Time (within 30 days or less): 10 points
- Online Application: 5 points
- Ease of Use: 5 points
Credit Scores: 15 points
Conventional loan types generally require a minimum credit score of 620. However, there are other types of lenders and loans that may allow borrowers to have a lower score. Lenders that can accommodate a variety of credit scores will earn more points within this category.
- Borrowing options for different credit scores: 15 points