Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure

9 best mortgage lenders in Alabama

Hoping to buy a home in the Heart of Dixie? Here’s a look at the best mortgage lenders in Alabama.

From Mobile to Montgomery and from Birmingham to Tuscaloosa, Alabama is home to some of the best real estate in the Southeast. If you’re thinking about settling down in one of these cities — or elsewhere in the state — the best mortgage lenders in Alabama can help you purchase a home you’ll love.

What are the best mortgage lenders in Alabama?

Why we chose these lenders

The lenders featured on this list were selected based on their fees, loan amounts, interest rates, mortgage programs, minimum requirements and other factors. Our team also considered customer reviews from sites including Zillow, Trustpilot, WalletHub and the Better Business Bureau (BBB). Learn more about Finder’s rating methodology.

Best for online experience

Better

See rates
on Better's secure site

Many of Alabama's best mortgage lenders have user-friendly websites that look great on screens of all sizes, but perhaps none of these lenders have a website as polished as Better's. Whether you visit it from a smartphone, tablet or laptop, you're likely to find Better's website more intuitive than sites belonging to other lenders.

And in addition to its sleek online presence, Better also offers mortgage programs that don't require an origination fee. Plus, Better can price-match competitors if you happen to find a lower rate elsewhere.

Best for refinancing

LoanDepot

Finder rating 3 / 5 ★★★★★

While many of Alabama's leading mortgage lenders primarily focus on helping you buy a home, several of them can also help you reduce your existing mortgage payment by refinancing. And among these lenders, LoanDepot is the best choice in the state. LoanDepot offers homeowners lifetime guarantees on refinanced mortgages, which means that after you refinance with this company once, it waives any future lender fees and reimburses you for any costs associated with appraisals.

Rocket Mortgage

See rates
on Rocket Mortgage's secure site
Although the other mortgage lenders in Alabama each have a lot to offer, none can compete with Rocket Mortgage when it comes to popularity. This lender is the most common choice among Alabamans looking for home loans, and it's an excellent choice for borrowers with below-average credit scores. Rocket Mortgage's website lets you receive a conditional prequalification in about 10 minutes, and this lender won't charge you an extra fee if you pay off your loan before its deadline.

Best marketplace

LendingTree

See rates
on LendingTree's secure site

LendingTree is a mortgage marketplace — not a direct lender — that can quickly give you an overview of Alabama's leading lenders and the rates you could qualify for. Start by answering several questions on LendingTree's website, and they'll present you with a list of lenders and their corresponding terms.

Let LendingTree do the legwork of comparing your options to save you tons of time when shopping for a mortgage in Alabama. However, using the platform means you permit LendingTree to share your contact details with third parties, so be prepared to field some unwanted emails and phone calls.

Best for low rates

Bank of America

One of the country's largest financial institutions, Bank of America (BoA) was founded in 1998, although its history dates back to the early 1900s when it opened as the Bank of Italy in San Francisco. BoA is a major player in the US mortgage industry, although it doesn't have many physical branches in Alabama.

However, compared to most other lenders in the state, BoA's mortgage rates tend to be slightly lower, meaning you could save tens of thousands of dollars over the life of your loan. So if you're aiming to pay as little interest as possible, you should certainly consider BoA.

Best regional lender

Regions Bank

Headquartered in Birmingham, Regions Bank is the largest financial institution in Alabama, so it processes a significant amount of the state's mortgages. Regions Bank offers a variety of mortgage programs suitable for first-time and experienced borrowers, including programs for renovation and repair as well as construction-to-permanent homes. Additionally, Regions has a unique HomeBonus program that rewards you for using an approved real estate agent.

Best for customer service

Guaranteed Rate

Although many hopeful homeowners choose a mortgage lender based solely on whichever company offers the lowest rate, quality customer service is equally important. And compared to other mortgage lenders in Alabama, Guaranteed Rate offers perhaps the most exceptional customer service in the state.

Based on more than 11,000 reviews on Zillow, Guaranteed Rate has an incredible score of 4.96 out of 5. And aside from providing stellar support, this lender also offers some of the most attractive mortgage rates in Alabama.

Best for a wide range of credit scores

Fairway Independent

Headquartered in Madison, Wisconsin and founded in 1996, Fairway Independent Mortgage Corporation is a fast-growing nationwide lender with more than 500 branches. Fairway Independent offers several types of mortgages, including some special home loan programs that aren't available from other lenders.

And even if your credit score isn't stellar, you can still get approved for a mortgage. In fact, for VA and FHA loans, Fairway Independent can approve Alabamans with credit scores as low as 580.

Best for first-time homebuyers

Trustmark National Bank

Based in Jackson, Mississippi, Trustmark is a full-service bank founded in 1889, though it didn't expand to Alabama until 2013. Yet despite its relatively recent arrival in the state, Trustmark already has numerous branches throughout Alabama. This lender offers special programs for borrowers with low income and bad credit, but there are currently relatively few reviews for this lender, so it's tough to determine the quality of its service.

How do I choose the best lender for me?

There are hundreds of Alabama mortgage lenders to choose from, which can make finding the right one a considerable challenge. To make your decision easier, keep these tips in mind when comparing your options.
  • Read reviews. If you’re iffy about a certain lender, check online review sites to read what recent customers have to say about their experiences.
  • Apply for several preapprovals. When you have several estimates from competing lenders, you’ll have more leverage when it comes to getting the best rate.
  • Never accept the first offer. There’s usually a bit of wiggle room in the terms lenders can offer you, so try to talk loan officers down to the lowest rates possible.
  • Don’t skim anything you sign. Lenders often try to hide hidden fees in their agreements, so be sure to read every word of a loan agreement before signing it.

Compare mortgage lenders

Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.

Name Product Loan products offered State availability Min. credit score
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
AmeriSave
(NMLS #1168)
AmeriSave
Conventional, Jumbo, FHA, VA, USDA, Refinance
Not available in: NY
620
Great customer reviews and customized rate quotes in three minutes with no SSN needed.
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY
620
No hidden fees, multiple loan terms, and member discounts available.
Veterans United
(NMLS #1907)
Veterans United
Conventional, FHA, VA, USDA, Jumbo, Refinance
Available in all states
620
Veterans United stands out from other lenders for its focus on serving the military community.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
loading

Compare up to 4 providers

Average rates and fees in Alabama

As of October 29, 2020, the average mortgage rate in the US is 2.81%, but it’s currently slightly higher in Alabama. According to the Consumer Financial Protection Bureau (CFPB), the mortgage rate on 30-year fixed-rate mortgages in Alabama average 3.00%.

And while closing costs in the US typically range between 2% and 5%, closing costs in Alabama averaged only 1.39% of the sales price according to 2019 data from ClosingCorp. Continue researching mortgage rates in Alabama or compare closing costs in Alabama for more information.

Should I work with a broker?

With the exception of LendingTree, this list exclusively highlights direct lenders in Alabama because only they can approve and finance your home loan. But researching all your options could take several days — if not weeks.

If you’d like someone to find the best lender for you, you might want to work with a mortgage broker. Mortgage brokers can save you a ton of time, but not all of them have your best interest at heart.

The majority of brokers can be trusted, but a few bad apples might try to charge you unnecessary fees to boost their bottom lines. To identify an Alabama broker you can trust, be sure to read recent customer reviews instead of simply choosing the one that advertises the lowest rates.

Bottom line

Each of the best mortgage lenders in Alabama has something unique to offer, but not all of them are likely to be the best option for you. Consider each of their strengths and weaknesses, and start the application process today. Or, if you’d like to continue exploring your mortgage options, check out our in-depth reviews on other leading lenders in Alabama and beyond.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site