10 Best Mortgage Lenders of November 2022

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Mortgage rates have been increasing steadily since 2022 began.

For homebuyers and homeowners, making a good decision about buying or refinancing has much more to do with personal circumstances than current mortgage rates. Borrowers shouldn’t panic, says Rob Cook, vice president for marketing, digital, and analytics for Discover Home Loans. “Historically, rates are still fairly low.”

Experts say rising interest rates shouldn’t deter homebuyers too much. “The benefits of homeownership do not come exclusively because of mortgage rates,” says Ralph McLaughlin, chief economist at Kukun, a property data and analytics firm. “They come in spite of mortgage rates.”

A mortgage is a huge financial commitment. That makes choosing a mortgage lender the most important step in a homebuying journey.   

You want to ensure you’re getting the best deal possible. According to the Consumer Financial Protection Bureau (CFPB), interest rates can vary by 0.5% or more between two similarly qualified borrowers. Even a small difference in interest rates can help you save thousands of dollars over the life of the loan. 

But there’s a lot more to choosing the best mortgage lender than the rates. A lender with transparent pricing, online conveniences, accessibility to most borrowers, an extensive product offering, and a reputable history with customer satisfaction are all important factors, too.

With hundreds of lending options available, deciding which mortgage lender is the best choice is a challenge. To help you navigate the process, NextAdvisor reviewed 51 different lenders and scored each one on categories including transparency, accessibility, online convenience, loan product variety, and customer satisfaction. We then narrowed down the list to the top 10 best mortgage lenders. 

Editorial Independence

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.

Top 10 Best Mortgage Lenders of June 2022

Best With Fast Preapprovals and Closings
Guaranteed Rate
Guaranteed Rate
Best With Fast Preapprovals and Closings
Guaranteed Rate
  • Guaranteed Rate’s Standout Feature::
    Guaranteed Rate says it can provide a preapproval letter in around 15 minutes, and the company goal is to be clear to close within 10 days.

NextAdvisor’s Take

Pros
  • More than 400 branch locations nationwide
  • Operates in all 50 states and Washington, D.C.
  • Fully online mortgage application process
  • Detailed advertised rates for many of its loan products
  • Online preapproval 15 minutes
  • Fast closings
Cons
  • Lenders fees not available online
  • Some loan types are brokered off to other lenders
The Bottom Line

Guaranteed Rate is a Chicago-headquartered firm with a strong online presence and 400 branch locations  across the country. We ranked the company a top lender because of its top-of-the-line digital experience, helpful consumer tools, solid customer service, and variety of loan products, including all three government loans.

Guaranteed rate received fewer consumer complaints compared to most other lenders we reviewed. The company logged less than one complaint per 1,000 loans originated with the Consumer Financial Protection Bureau (CFPB) consumer complaint database, the agency responsible for collecting, monitoring, and responding to U.S. consumer complaints about financial services and products.

See our full review of Guaranteed Rate here.

Best for Military Families
Navy Federal Credit Union
Navy Federal Credit Union
Best for Military Families
Navy Federal Credit Union
  • Navy Federal Credit Union Standout Feature:
    Offers a unique relock rate option: You can lock in your interest rate and relock it twice if rates improve before closing.

NextAdvisor’s Take

Pros
  • Specializes in providing services and advice to the military community
  • Offers no-down-payment mortgages
  • Has flexible credit requirements
  • Doesn’t charge private mortgage insurance
  • You can lock in your interest rate and relock it twice if rates improve
Cons
  • Membership is limited to service members, veterans, and certain government contractors
  • Doesn’t offer FHA loans and USDA loans
  • You’ll have to request a customized rate quote
The Bottom Line

Headquartered in Vienna, Virginia, Navy Federal Credit Union serves all 50 states and has 344 branches worldwide. Navy Federal Credit Union was a high-scoring lender by NextAdvisor because of its price transparency, streamlined online application process, and loan product variety. It has a slightly above average complaint ratio of 2.8 complaints per 1,000 loans with the CFPB. But this lender offers no-down payment and flexible credit requirements on most mortgage products to qualified military service members and their families.

See our full review of Navy Federal Credit Union here.

Top Lender In Customer Satisfaction
Rocket Mortgage
Rocket Mortgage
Top Lender In Customer Satisfaction
Rocket Mortgage
  • Rocket Mortgage’s Standout Feature:
    Despite its magnitude, the company has lower-than-average consumer complaints registered on the CFPB consumer complaint database.

NextAdvisor’s Take

Pros
  • Quick and easy preapproval process
  • Entirely remote application and approval process
  • Lends in 50 states
  • Wide range of loan options
  • Strong customer service reputation
Cons
  • No physical locations
  • You’ll need to call or chat with a representative for some loan information
  • No construction loans or renovation loans
  • Advertised rates may include discount points, which increase your upfront costs
  • Difficult to find mortgage menu of loans
The Bottom Line

Rocket mortgage is the online lender for Quicken Loans and is one of the largest mortgage lenders in the U.S. We ranked the Detroit-based company as one of the best mortgage lenders because of its simple online application process, low level of consumer complaints, the transparency and accessibility of its rates and fees, and the company’s wide offering of mortgage loan products.

Rocket Mortgage stands out for the company’s high level of customer satisfaction. Rocket Mortgage originated over one million loans in 2020, making it the largest lender we reviewed by total volume.  We found 0.48 complaints per 1,000 loans — or less than half a complaint per 1,000 loans occurred. This figure is very low compared to the average complaint ratio of 2 complaints per 1,000 loans among other lenders we reviewed.

See our full review of Rocket Mortgage here.

Top Lender Among Military Families
Veterans United Home Loans
Veterans United Home Loans
Top Lender Among Military Families
Veterans United Home Loans
  • Veterans United Standout Feature:
    Veterans United provides a wealth of information on its website regarding what to expect through the loan process, closing, how to prepare for homeownership, home loans basics, credit, and underwriting.

NextAdvisor’s Take

Pros
  • Mortgage loans available in all 50 states
  • Educational content available through the company’s website
  • Highly experienced in VA loans as a top three VA loan originator for five consecutive years
  • Low number of consumer complaints with the CFPB
  • Offers a number of loan programs including VA, jumbo, conventional, FHA, and USDA
  • Full online application process
Cons
  • Limited online rate information; must call to see other rate options such as discount points
  • Difficult to find information regarding non-VA loan options
  • Does not offer home equity loans or lines of credit
The Bottom Line

Veterans United Home Loans, headquartered in Missouri, is a mortgage lender that specializes in VA home loans in all 50 states. Veterans United is incredibly active in the VA loan space. The U.S. the Department of Veterans Affairs has listed Veterans United in the top three among VA loan lenders by volume for five consecutive years. While the company focuses heavily on VA loans, it also offers conventional, jumbo, FHA, and USDA loans.

Veterans United has a fully digitized and easy online application process. Compared to other lenders we’ve reviewed, the company had one of the lowest complaint ratios logged with the CFPB: less than half of one complaint per 1,000 loans originated.

See our full review of Veterans United Home Loans here.

Best for the Non-Traditional Borrower
North American Savings Bank
North American Savings Bank
Best for the Non-Traditional Borrower
North American Savings Bank
  • NASB’s Standout Feature:
    NASB has several programs that can help non-traditional borrowers get a home such as the self-employed and those with a less-than-prefect credit history.

NextAdvisor’s Take

Pros
  • Lends in 50 states
  • Has unique loans products for borrowers with credit issues or are self-employed
  • Advertises daily interest rates for purchase and refinance loans
  • Can get lower rate if rate drops during 90-day rate lock period
  • Streamlined online application process
  • Can get customized rate quote without hard credit check
Cons
  • 12 in-person branches, but only in Missouri
  • Does not offer USDA loans, construction loans, renovation loans, and home equity products
  • Higher credit score standards on FHA and VA loans
The Bottom Line

Headquartered in Kansas City, Missouri, North American Savings Bank (NASB) is a full-service bank that lends in all 50 states. North American Savings Bank has a more extensive mortgage menu than most, including options for veterans, first-time homebuyers, self-employed people, and borrowers with less-than-perfect credit histories. That’s because the bank offers VA loans, FHA loans, and mortgages for people who don’t fit conforming loan standards. NASB also has a streamlined online application process with transparent pricing for browsing borrowers.

See our full review of North American Savings Bank (NASB) here.

Best for Full Service Banking
Truist (SunTrust and BB&T) Mortgage
Truist (SunTrust and BB&T) Mortgage
Best for Full Service Banking
Truist (SunTrust and BB&T) Mortgage
  • Truist Bank’s Standout Feature:
    There is an allure of convenience to also have your mortgage through the same institution you bank with

NextAdvisor’s Take

Pros
  • Offers a full lineup of the major mortgage programs
  • Advertises sample mortgage rates on both the SunTrust and BB&T websites
  • Mortgages available in 47 states and Washington, D.C.
  • Can submit an application online, by phone, or in person
Cons
  • Gathering mortgage product information is slightly confusing because of the merger
  • Mortgages not available in Hawaii, Alaska, or Arizona
The Bottom Line

Truist Bank, now merged with Suntrust and BB&T under its name, has an extensive footprint across the U.S. through its thousands of brick-and-mortar branches and online presence. Along with the company’s solid menu of mortgage products, easy-to-use online application process, transparency of rate and fee information, and average number of complaints compared to other reviewed lenders, the brand’s website is easy to navigate with several useful resources to help with the borrowing process, such as calculators, videos, and sample mortgages.

Truist offers a comprehensive menu of online or in-person banking accounts such as checkingsavingsmoney market, and CDs. If you are in the market for a bank, looking to switch banks, or already have a Truist account, there is an allure of convenience to also have your mortgage through the same institution. Some lending institutions also give incentives or discounts to existing account holders.

See our full review of Truist Bank here.

Best Online Application Process
Sebonic Financial
Sebonic Financial
Best Online Application Process
Sebonic Financial
  • Sebonic Financial’s Standout Feature:
    Sebonic’s proprietary borrowing platform, Octane. We found Octane to be one of the best online application processes

NextAdvisor’s Take

Pros
  • Offers a streamlined digital application and closing process
  • Funds conventional loans, jumbo loans, and all three government-backed loan programs
  • Available in all 50 states and Washington, D.C.
  • Interest-only jumbo ARMs available
Cons
  • Mortgage rates aren’t published on the lender’s website
  • Doesn’t offer home equity loans, HELOCs, renovation loans, reverse mortgages, or construction loans
  • In-person branches only available in Charlotte, North Carolina; Gaithersburg, Maryland; and Las Vegas, Nevada
The Bottom Line

Sebonic Financial is the mortgage lender division of North Carolina-headquartered Cardinal Financial. Sebonic Financial scored well with NextAdvisor because of the company’s high-end digital borrowing experience, full mortgage product lineup which is available in all 50 states,  and the lender’s history of below-average customer complaints with the CFPB. Based on 2020 data, Sebonic has less than one complaint per 1,000 loans originated in the same year.

Although Sebonic’s mortgage rates and fees are not listed on the company website, the online system, Octane, makes it easy to access a quote without a credit check or drawn-out process. With Octane, borrowers can get a fast rate quote, start an application, upload documents, and sign closing documents, with real-time updates along the way. We found Octane to be one of the best online application processes compared to other lenders we’ve reviewed. It’s easy-to-use, high-tech, and we appreciate the ability to have a full-online digital experience with the option to speak to loan officers.

See our full review of Sebonic Financial here.

Best Online Experience
Penny Mac Loan Services
Penny Mac Loan Services
Best Online Experience
Penny Mac Loan Services
  • Pennymac’s Standout Feature:
    Very low complaint history and best overall online user experience with price transparency and user-friendly application process

NextAdvisor’s Take

Pros
  • Advertises daily interest rates for purchases and refinances
  • Customized rate quote available online
  • User-friendly online experience
  • Available in 49 states (not available in New York)
  • Maintains 16 branch locations spread across nine states
Cons
  • Doesn’t offer home equity products, jumbo mortgages, reverse mortgages, construction loans, and renovation loans
  • Doesn’t share information about minimum qualification requirements on its website
The Bottom Line

Pennymac Loan Services isn’t a well-known name. But the California-based mortgage lender stands out for its convenient online application process, ability to get a rate quote without a credit check, transparency of rates and fees, and low frequency of consumer complaints with the CFPB. In 2020, the CFPB reported less than 0.30 complaints per 1,000 loans. Pennymac offers most major mortgage products and all three-government loans in 49 states, with 16 brick-and-mortar branch locations.

The brand had one of the lowest complaint ratios among lenders we reviewed, but the more noticeable standout feature is the overall online experience. At NextAdvisor, we value price transparency and accessibility. Pennymac met this expectation with daily rate and fee updates and customizable rate quotes on its user-friendly webpage.

See our full review of Pennymac Loan Services here.

Best for the Self-Employed Borrower
Watermark Home Loans
Watermark Home Loans
Best for the Self-Employed Borrower
Watermark Home Loans
  • Watermark Home Loan’s Standout Feature:
    The “Non-QM loan,” or “Non-Qualified Mortgage” for the non-traditional borrowers, such as the self-employed, a history of bankruptcy, or with less attractive debt-to-income ratios. 

NextAdvisor’s Take

Pros
  • Solid mortgage menu of products including all three government loans
  • Unique loan product for the non-traditional self-employed borrower
  • Calculators and tools very helpful
  • Easy digital application process
  • Low level of consumer complaints
Cons
  • Only originates mortgages in 38 states (more states coming soon)
  • A breakdown of lender closing fees is not provided with rate quote
The Bottom Line

Watermark Home Loans based out of Irvine, CA, and currently licensed in 38 states. The company is named one of NextAdvisor’s best mortgage lenders of 2022 because of its streamlined online application process, extensive loan product menu including standard conventional, jumbo, and refinance loans, but also all three government-backed loans (FHA, VA, and USDA). Another stand out product by Watermark is its “non-qualified mortgage” meant to serve borrowers with unique income criteria, such as the self-employed.

Watermark has a fully digital online application process with document uploading capabilities. The company also offers an online notary service so you can opt to complete closing paperwork all online versus in person. 

Borrowers can receive a customized rate quote by filling out a form online with basic information and then will get an email with a few different quote options to review that lays out clearly discount points, lender credits, or closing costs options. Watermark Home Loans advertises national daily rate averages along with data indicators of how much each loan type’s rate has moved up or down in the last 30 days.

Watermark has a lower-than-average number of consumer complaints: Less than one complaint per 1,000 originated loans in 2020, according to the CFPB’s consumer complaint database.

See our full review of Watermark Home Loans here.

 

 

Best Pricing Transparency
LenderFi
LenderFi
Best Pricing Transparency
LenderFi
  • LenderFi’s Standout Feature:
    Out side of third-party closing fees, LenderFi advertises no additional lender fees as part of the closing costs.

NextAdvisor’s Take

Pros
  • Rate quotes can be obtained online without a credit check
  • Quick and easy to reach a loan representative by phone
  • Very friendly customer service
  • Does not charge lender fees
  • Super transparent pricing
Cons
  • Short list of loan types: No VA, USDA, or home equity loans
  • Loans are not offered in all 50 states
  • Company’s website has minimal educational content
The Bottom Line

Headquartered in Calabasas, CA, LenderFi is named one of NextAdvisor’s best lenders because of the company’s easy-to-use online application process. LenderFi provides a unique feature to its rate quotes: A full, transparent, line-by-line breakdown of all rates and fees before even getting a credit check. Discount points are clearly advertised with how they affect the APR and monthly payment. The quote even estimates homeowners insurance, mortgage insurance (if applicable), property tax costs, and all third-party closing fees.

What’s more, the company has a below-average number of consumer complaints (per 1,000 loans originated) logged with the (CFPB).

The company advertises that it does not charge lender fees as part of the closing costs. Third-party closing fees, such as appraisal, title insurance, and inspection costs still apply. But LenderFi says no additional lender costs are passed to the borrowers. Instead, all lender-related costs are rolled into the quoted rate and APR.

See our full review of LenderFi here.

Honorable Mention: Costco Mortgage Program

Best Lender Marketplace
Costco Mortgage Program
Costco Mortgage Program
Best Lender Marketplace
Costco Mortgage Program
  • Costco Mortgage Program Standout Feature:
    Costco members have access to a network of lenders in one marketplace, one credit check, and potential discounts and incentives for borrowing through this platform.

NextAdvisor’s Take

Pros
  • Costco members get discounts on lender fees
  • Applicants can compare loans from several lenders
  • The mortgage application process is quick and automated
Cons
  • Fee discounts are only available to Costco members
  • Not a direct lender, but a marketplace program
The Bottom Line

The Costco mortgage program does not originate mortgages, so it was not included in the list of best mortgage lenders. However, the useful marketplace is worth an honorable mention. Costco members have access to a network of participating mortgage lenders offering discounts and incentives for borrowing through this channel. Through the Costco mortgage marketplace website, you can fill out a universal application, compare loan offers, and cash-in on discounts or lender fees if you choose a lender through this program. The marketplace platform is easy to navigate with transparent pricing and terms. You can get a rate quote online in minutes and will only be contacted by the lender with your expressed permission.

See our full review of the Costco Mortgage program here.

How to Find the Best Mortgage Lender for Your Situation

Outside of price and lender reliability, narrowing down your choice comes down to what is best for you and your personal circumstances. Depending on your goals and needs as a borrower, one lender could be a better fit than another. For example, a first-time homebuyer that is down payment-challenged can look into lenders with down payment assistance programs. Another borrower may have a low credit score and may need a lender with a lower credit threshold. 

Here is what you can use to evaluate your decision: 

Types of Mortgages Available

One of the first steps to narrowing down the list of lenders you’re considering is figuring out what type of mortgage you need.

If you have blemishes on your credit report, like a bankruptcy, then an FHA loan is likely to be easier to qualify for than conventional loans. Other loans, such as USDA and VA loans, offer 100% financing with no down payment required. If you want to take advantage of any of these government-backed loan programs, then you’ll need to find a lender that offers these types of loans.

The loan repayment term can also impact the lender you choose. Most lenders offer 15-year or 30-year mortgages, but if you want a 10-year mortgage or a 40-year mortgage, your options will be more limited. 

Loan Officer Experience

The biggest mortgage lenders have hundreds of locations and are staffed by thousands of loan originators. So within the same lender, you could have a wildly different experience depending on the individual loan officer you work with.

Talk with a loan officer to ensure that they have experience in the industry and have dealt with individuals in similar situations to your own. If you’re applying for a VA loan or FHA loan, working with a loan officer who’s familiar with those types of mortgages is even more important.

Homebuyer Assistance Programs

Homebuyer assistance programs can provide you with thousands of dollars to put toward your down payment and closing costs. For many first-time homebuyers this assistance is the difference between buying a home or needing to continue renting. As you’re comparing lenders, be sure to ask if they have these types of programs. 

Closing the Gap

There are some notable discrepancies within the housing market that disproportionately affect Hispanic homebuyers. Latinos were 60% more likely to be denied home loans in 2020 compared to non-Latinos, according to a report by the non-profit advocacy group the National Association of Hispanic Real Estate Professionals.

This means securing a loan for a home purchase may be particularly difficult for Hispanic borrowers. Lenders will consider whether you are an eligible borrower, but you can turn the tables and evaluate if they are the best lender for you. The best way to gain leverage is by shopping around and comparing rates and fees with multiple lenders to be sure you’re getting the best deal and a fair offer. 

Why It’s Important to Shop Mortgage Lenders

It’s important to compare offers from a variety of lenders because each will evaluate your financial situation differently. To secure the best rate, fees, and terms for your situation most financial experts recommend comparing at least two to three different quotes. Here is what to consider: 

Comparing Rates

A difference of 0.50% doesn’t sound like a lot but can save you thousands of dollars over the loan’s life. 

Take this example on a 30-year fixed, $300,000 loan:

Loan Amount Interest RateMonthly Principal and Interest Payment  Total Interest over Loan’s Life 
$300,0003.6%$1,363$191,285
$300,0003.1%$1,281$161,189
Difference0.50%$82$30,096

With this example, the 0.50% difference in interest rate is the difference of $82 a month. Over a 30 year loan, that difference equates to $30,096 in total interest. 

Comparing Lender Fees

Securing the lowest interest rate isn’t the only factor you need to consider when comparing mortgage lenders. Two lenders can advertise the same mortgage rate but charge wildly different closing fees. A low rate with high closing costs can eat away at the savings you thought the low rate provided. 

One sure-fire way to evaluate the difference between offers is to look at a mortgage loan’s APR. The APR factors in many of the loan’s fees, in addition to the interest rate, over the loan’s full term. 

Consider this example on a 30-year fixed, $200,00 loan:

Loan Amount Interest Rate Closing Costs APR
Loan A$200,0003%$6,0003.233%
Loan B$200,0003.125%$2,0003.204%

Loan A is the more tempting offer since it has a lower interest rate but it has higher lender fees. Loan B may be overlooked because of its higher interest rate. But it has lower lender fees and a lower overall APR. 

That is why the best apple- to-apples comparison when comparing offers is to compare the APR on each Loan Estimate. The best approach is to do plenty of research, narrow it down to a list of two to three, get prequalified with each, and compare the Loan Estimates side by side.

Don’t wait too long in between applications, though. According to Experian, multiple hard credit inquiries related to mortgages are counted once in a 30-day period. 

For more information on specific lenders, NextAdvisor has an extensive library of mortgage lenders reviews here.

Compare Loans with This Loan Comparison Tool

Home loan comparison calculator

Compare your payment options side-by-side to see which is right for you and your financial situation.

Find the mortgage that’s best for you by comparing the cost of multiple loans over time.

How We Chose the Best Mortgage Lenders

Our Methodology

To find the best mortgage lenders of 2022, we first looked at all the mortgage lenders NextAdvisor has reviewed so far. To come up with the best mortgage lenders, we use criteria to develop a framework using a weighted average score between 0 and 5 with more weight awarded to the criteria we determined to be the most important. 

Our list doesn’t take into account key financial factors like mortgage rates, APRs, and fees, because those depend on market conditions and your individual creditworthiness. Instead of focusing on those numbers, it’s best to first determine the qualities you want in a lender and how to find the best mortgage rates. Then you’ll be prepared to find the best lender for you.

The factors we used to evaluate the best mortgage lenders: 

  • Online Convenience: A lender is scored 1 through 5 based on the company’s online application experience. A 5 is awarded if the company’s mortgage application can be completed fully online with a streamlined process, including uploading documents and a customized rate quote. A lower score is awarded if additional phone calls are needed to process an application or for a poor online user experience. 
  • Transparency: Lenders are scored 0 through 5 based on the accessibility and transparency of mortgage rates, lender fees, and credit check requirements for rates and/or fees. A 5 is awarded if the lender advertises rates and fees on its websites and doesn’t require a hard credit check to get rates and/or fees. Conversely, a lower score is awarded when consumers cannot easily access rate and fee information and/or must go through a hard credit check to access them.
  • Nationwide Availability: Lenders are scored 1 through 5 based on the company’s geographical footprint. A lender can score a 5 if it operates in all 50 U.S. States. 
  • Loan Product Variety: Lenders are scored 1 through 5 based on their loan product menu and variety of products offered. A high score of 5 is given if most or all mortgage products are available, with a lower score awarded for a limited mortgage menu. 
  • Customer Satisfaction: To measure customer satisfaction, we reviewed the number of complaints filed against each lender with the Consumer Financial Protection Bureau in 2020. We divided the total consumer complaints with the total number of loans originated over the same time period to get a complaint ratio per 1,000 loans originated. We sourced the total loans originated using publicly accessible data provided under the Home Mortgage Disclosure Act and regulated by the Federal Financial Institutions Examination Council (FFIEC)

 

Best Mortgage Lenders: Frequently Asked Questions (FAQ)

What Factors Affect a Mortgage Rate?

Many factors that go into determining your mortgage rate. A lender won’t give you an accurate estimate until you apply for a mortgage and have a credit inquiry performed. From there, a Loan Estimate will be provided that breaks down all of the fees and your interest rate. The following factors will determine your rate and fees: 

Credit Score

The higher your credit score, the better your interest rate. You may be able to qualify for a mortgage with a credit score under 700, but you’ll pay a premium for the loan.

To get the lowest mortgage rate, you’ll want a credit score of 740 or higher. Building your credit score can take some time, but it can make homeownership much more affordable in the long run.

Loan-to-Value Ratio (LTV)

A loan-to-value ratio takes into account the size of your down payment or how much equity you have in your home if you’re refinancing. This figure is an important consideration for lenders. In the eyes of the lender, the lower the LTV, the more the borrower is invested in property, and the better the chances of loan approval and competitive rate.  

An LTV of 80% or less will help you secure the best mortgage rate and allow you to avoid paying private mortgage insurance (PMI) on conventional loans. So if your home, or future home, is worth $200,000, a 20% downpayment of $40,000 will give you an LTV of 80%. 

Debt-to-Income Ratio (DTI)

How much debt you have will limit the amount you can borrow and impact your mortgage interest rate. Because your mortgage is paid monthly, lenders typically look at your monthly debt payments and calculate it as a percentage of your income. This is known as your debt-to-income ratio, or DTI.

The maximum allowable DTI varies by loan type and can be as high as 50%. But the maximum DTI you’re allowed to have isn’t necessarily ideal. You want to make sure you’re purchasing a home you can afford, and as your DTI increases, your mortgage rate can move up right along with it. A good DTI target is 36% or less, including your future mortgage payment.

Income

Proof of stable and consistent  income is an important factor a lender will take into consideration when approving a low rate offer. Certain types of employment, such as self-employed or commission-based pay, could factor into a loan approval and rate offer. In the eyes of the lender, some borrowers are a riskier investment and may want the borrower to pay more for that risk. 

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