Choosing the right lender can make all the difference in your home-buying experience. With numerous options available, understanding what each lender offers is crucial. Here, we’ll break down the pros and cons of some leading lenders: LoanDepot, Rate, New American Funding, Rocket Mortgage, Bank of America, Chase, Wells Fargo, Tomo Mortgage, and others to help you make an informed decision.
Which lender is the best?
Choosing the right lender depends on your individual needs. If you’re looking for a hassle-free process with no lender fees, checking us out at Tomo Mortgage might be a compelling choice. For those who want to explore multiple options, Nerdwallet can be a solid option.
Comparative Breakdown
| Lender | Founded | Avg. Loan Size | Lender Fees | Customer Reviews | Employee Reviews |
| Bank of America | 1955 | $310,000 | $2,494 | 1.4 stars on Consumer Affairs | 3.3 Stars on Glassdoor |
| Chase | 1955 | $599,000 | $2,867 | 1.2 stars on Consumer Affairs | 3.6 Stars on Glassdoor |
| Wells Fargo | 1929 | $626,000 | $2,376 | 1.3 stars on Consumer Affairs | 3.5 Stars on Glassdoor |
| Rate | 2000 | $363,000 | $2,969 | 3.9 stars on Consumer Affairs | 3.1 Stars on Glassdoor |
| New American Funding | 2003 | $493,000 | $4,400 | 3.7 stars on Consumer Affairs | 3.5 Stars on Glassdoor |
| LoanDepot | 2010 | $328,000 | $4,200 | 3.1 stars on Consumer Affairs | 3.2 Stars on Glassdoor |
| Tomo Mortgage | 2020 | $376,000 | $0 | 5 stars on Consumer Affairs and 4.5 stars on Google (we want to give you the full picture as we’re still growing our reviews on both platforms). | 4.1 Stars on Glassdoor |
| Rocket Mortgage | 1985 | $264,000 | $4,700 | 4.1 stars on Consumer Affairs | 3.5 stars on Glassdoor |
How to judge mortgage lenders
- Interest rates: Don’t get fooled by flashy numbers. Always check out the APR (Annual Percentage Rate) and factor whether there’s any “points” associated with the advertised rates (often, lenders won’t make this easy to find). This is your real cost of borrowing, so get the full picture before signing up.
- Lender fees: Also called “origination fees” or “application and processing fees, which most lenders charge aka “we’re charging you extra for doing our job fee”. At Tomo Mortgage, we’re lender fee-free, saving you thousands of dollars at closing.
- On-time close rate: This is how often lenders actually close on the promised date. Industry standard? About 40%. But Tomo Mortgage –flexing a 98% on-time close rate, and we’re proud of it. Other lenders don’t even bother to share this info, but it’s a huge deal.
- Pre approvals: While some lenders don’t take the time necessary to prepare a strong pre approval and offer letter, this is critical to making a successful offer on a new home. Tomo Mortgage’s online pre approval only takes 15 minutes, and it includes a soft credit check.
- Customer satisfaction: If you’re finding it tough to trust what lenders are telling you, one of the best ways to gauge their reliability is by looking at reviews from people who were once in your shoes. Did those customers have a smooth experience with the lender? What went right—or wrong?
- Employee reviews: Insights into employee satisfaction can reveal a company’s values and transparency. Unhappy employees often lead to bad overall experiences. (See what their engineers have to say, for example.)
How do most people decide on a lender?
For most people the most important factor is the rate. We were curious to see how Tomo Mortgage’s APR (annual percentage rate) stacked up against Rocket Mortgage, so we looked at three Zip codes for two weeks on Nerdwallet (where we could compare apples-to-apples on loan scenarios). Using the median home sale price for each location, a credit score range of fair at 680, and with putting 5% down.
In this scenario, from August 7 to August 20, 2024, Rocket’s average APR was 7.64%, while Tomo Mortgage’s average APR was 6.26%.
So, we’re obviously biased, but we’d say don’t choose either. Tomo Mortgage has lower rates, lower fees, and better reviews. It’s a pretty obvious choice.
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.
