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9 best mortgage lenders in Tennessee

Our top picks for low rates, refinancing, first-time homebuyers and customer service in the Volunteer State.

Home to the Great Smoky Mountains and the Nashville music scene, nearly seven million people call Tennessee home. Around 66% of Tennesseeans own their property and pay an average of $1,244 per month in ownership costs, including mortgage payments, taxes and utilities — which is below the national average.

According to Zillow, the average price of a house in Tennessee is $207,727 as of March 2021. Home values in the state have gone up 10.3% over the past year. So if you want to buy a new home or get a low-rate mortgage refinance, our top nine lenders are a great place to start your search.

Best Tennessee mortgage lenders in 2021

How we picked the best lenders

We hand-selected these lenders from 200 mortgage companies originating home loans in Tennessee. These top nine picks made our list after researching and comparing interest rates, first-time homebuyer programs, credit score eligibility, customer service and technology.

We also read customer reviews from consumer rating sites like Zillow, Trustpilot and the Better Business Bureau (BBB) in making our decisions. To learn about our lender selection process, please see Finder’s rating methodology.

Rocket Mortgage

See rates
on Rocket Mortgage's secure site

Rocket Mortgage is a fully digital lender that allows you to apply for a loan from anywhere, without the need for a loan officer. Currently, Rocket Mortgage is the number one lender in the US, with nearly one out of 10 borrowers using the company for their home loan in 2020.

Start by getting prequalified on the Rocket Mortgage website to see your available rates. When you're ready to apply for a loan, Rocket Mortgage's application can sync with your bank for a quicker, more streamlined process.

Best online experience

Better

See rates
on Better's secure site

Better is a 100% digital lender that never charges loan origination fees or lender's commissions. The company offers a range of purchase and refinance loans, lists its interest rates online and can provide you with a loan estimate in minutes.

Since 2016, Better has funded more than $25 billion in loans and can help find you a real estate agent or assist with your title and homeowner's insurance through its Better Settlement Services and Better Cover divisions.

Best marketplace

LendingTree

See rates
on LendingTree's secure site

LendingTree is a 100% free marketplace where you can compare mortgages. Instead of having to research companies yourself, LendingTree will take your information and match you up to lenders from its database of 1500+ partners nationwide.

To use the service, visit the LendingTree website or download the LendingTree app and fill out a form with some information. Within minutes, you should start seeing real-time offers from multiple lenders for you to compare.

Best for a wide range of credit scores

Mr. Cooper

If you're concerned about a lower credit score, Mr. Cooper may be able to help. This company offers a range of loans, including conventional, jumbo and government-backed loans and may have greater credit score flexibility than some lenders.

Headquartered in Dallas, Texas, Mr. Cooper has a 100% US-based advisor team, a convenient app for making electronic payments and special benefits for existing customers. To get started, visit the website and get in touch with a loan officer.

Best Regional Lender

Mortgage Investors Group

Mortgage Investors Group (MIG) is a growing regional lender in the Southwest that comes highly rated by past customers. The company has 29 branch locations across 10 states and provides on-site underwriting, processing and appraisal services.

MIG offers a wide range of mortgage products, including state-specific programs to help first-time homebuyers with low to moderate income. MIG has been the Tennessee Housing Development Agency's (THDA) top lender since 2003.

Best for refinancing

Freedom Mortgage

For over 30 years, Freedom Mortgage has been helping homebuyers, with a focus on military members and their families. The company offers a range of government-backed loans, including a VA IRRRL streamline loan for easier refinancing.

Freedom Mortgage is one of the top originators of VA and FHA loans in the nation and comes highly recommended by past customers. To get started, visit the website to locate a loan officer in your area.

Best for first-time homebuyers

Home Point Financial

Founded in 2015, Home Point Financial is one of the nation's top nonbank lenders, with a network of over 5,500 broker and correspondent partners. The company offers a range of conventional and government-backed loans, including FHA, VA and USDA loans.

Home Point Financial's website is clear and straightforward to navigate, offering a range of helpful articles and guides for first-time homebuyers. Browse the various topics and when you're ready to apply, contact a loan officer to get started.

Best customer service

Synergy One Lending

Synergy One Lending (S1) aims to provide the right mix of technology and people for a better lending experience. The company has a wide selection of loans, including conventional and government-backed loans, renovation loans and more.

S1 offers a straightforward loan application process, including an option to verify your assets electronically. To get started, visit the website or download the S1 Connect app, where you can apply for and track your loan right from your mobile.

Best rates

Y-12 Federal Credit Union

Founded in 1950, Y-12 Federal Credit Union is a Tennessee-only credit union that offers a range of home loans, including a 100% financing loan with no private mortgage insurance (PMI). The credit union has, on average, the lowest rates of all lenders we compared in March 2021.

If you'd like to get started, either call a loan officer at a local branch or visit the Y-12 Federal Credit Union website. From there, you'll be guided to select a loan officer and start an application on the loan officer's personal webpage.

Which lender is best for me?

With hundreds of lenders available in Tennessee, narrowing down the choices can feel overwhelming. The good news is that it’s possible to hone in on the right lender by considering what’s important to you.

Here are some tips:

  • Consider all costs. While interest rates are important, consider a loan’s down payment and PMI requirements, points, term length, closing costs and other fees.
  • Find a lender that fits. Do you want an in-person lender, a fully digital lender or something in between? Read online reviews to determine if a lender will be a good fit.
  • Ask the lender questions:
    • What is my APR?
    • Do I need to buy points?
    • What fees do you charge?
    • What are the total closing costs?
    • How long can I lock my interest rate for?
    • How long will the process take?
    • Who is my contact person if I need help?
    • Will you sell my loan after closing?
    • Are there prepayment penalties?
  • Get several quotes. Always get a minimum of three or four quotes so you can compare offers and negotiate a better rate.

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.
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.
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Compare up to 4 providers

Average rates and fees in Tennessee

As of March 2021, the benchmark 30-year fixed mortgage rate in the US is 3.29%. According to data from the Consumer Financial Protection Bureau (CFPB), most Tennessee lenders are offering interest rates at or below 2.375%, with rates in the state ranging from 2.00% to 4.625% as of this writing.

Additionally, you can expect to pay around $3,745 after taxes for closing costs, or approximately 1.25% to 1.87% of your home’s final sale price, according to data from ClosingCorp. Research mortgage rates in Tennessee and closing costs for more details on what you can expect to pay.

What about brokers?

Aside from LendingTree, our list of Tennessee lenders are companies that provide mortgage loans directly to consumers. However, if you don’t have the time to compare mortgage loans and rates yourself, a mortgage broker can do the work for you.

With a broker, you’ll pay around .5% to 2% of your loan’s value in commissions, but be wary of excessive fees. Many lenders offer free prequalification online, so you may discover you can find a low rate on your own, minus a broker’s commission.

Bottom line

Whether you’re a first-time homebuyer or want to refinance your current mortgage, many options exist. If one lender doesn’t have the right loan for your situation, another likely will. While our top Tennessee lender picks will be perfect for many borrowers, compare more lenders if you still need help finding the right fit.

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