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Deciding whether to transform your current house into your ideal home or start over with a fresh new space requires careful thought and consideration. There are two options to consider — stay and renovate or move to find something more suitable for your needs. This choice may make some people feel like they are at a crossroads.

Here are some steps you can take to help guide this important decision.

Get an Idea of How Much You Can Afford

If you’re considering moving, it’s important to understand how much of a mortgage you’ll qualify for and how much you can afford to spend on your new home. Connecting with a lender like Pennymac is a great first step. Our Home Connect resource can help set you up for success if and when you’re ready to begin your home search. Explore mortgage options, get BuyerReady Certified and receive advice from trusted real estate professionals.

Get a Comparative Home Analysis

Ask a realtor to provide you with a comparative home analysis to estimate the value of your current home. Determine if your home’s features align with your desires and needs. For example, do you need an extra bedroom to accommodate a new member of the household or your new work-from-home plans?

Understand Your Location Limits

Do you love where you live right now? Suppose you adore your neighborhood or town, but your house just isn’t appropriately sized for you and your loved ones. In that case, consider adding on to your house, whether that’s another bathroom or a second story.

On the other hand, If you have children, you may weigh the desire for a new school district with better academic programs. Or maybe you want to move closer to work. It really boils down to what your main priorities are.

If you’re looking to move to a larger home, keep in mind that a bigger house in your preferred area will likely have higher taxes, utility bills, homeowners insurance premiums and maintenance upkeep costs. On the flip side, if a move means you’ll have a shorter commute, you will save time and transportation costs. Prioritizing your location needs and determining what you are willing to spend or sacrifice to achieve your goals will help influence your decision.

Renovation Reality Check

Choosing whether to remodel or move depends on a lot of factors. Can you be creative with your existing rooms and make relatively easy and straightforward renovations, or are your requirements complex, expensive and challenging to complete?

Hire an architect or contractor to help pinpoint issues with your current house and decide what you need from your home. Want to add a second story? Get estimates on how long that might take and how much it might cost, and determine if you’re okay with living through such a major renovation.

Understanding Your Time Commitment Matters

Buying and selling at the same time can be a lengthy process. Organizing your home and putting it on the market can take months, plus there can be some financial and emotional uncertainty when buying and selling. It may take time to get the sale price you want and to find your ideal next home.

If you decide to move forward with buying and selling your home simultaneously, you’ll want to work with a real estate agent and have a plan for how you’ll manage the process. Timing everything right is essential since you don’t want to be paying two mortgages at once if you’re still waiting to sell your current home.

You’ll also want a savings buffer to help financially manage any complications or slowdowns. For example, you may need to temporarily stay in a hotel or put your furniture in storage.

Contingency Acceptance

A contingency clause in real estate is part of a purchase agreement that outlines specific conditions that must be met in order for the contract to be valid and binding. In some markets, home sale contingency offers are allowed, which means your bid for a house is contingent on the sale of your former abode.

In other markets, home buyer-feeding frenzies can prohibit contingent offers. When you put your house on the market, you have to decide if you’ll buy a new house first or make a contingent offer. If contingent offers are out of the question, you may require a temporary rental after escrow closes on your old home and you’re still looking for your next one.

Closing Costs

In addition to your down payment, you’ll have to pay closing costs, just like you did when you purchased your existing home. After figuring in closing costs, commission, title insurance and additional transaction costs involved in your home sale and purchase, it may be much less expensive to stay in your house and renovate. So don’t forget to calculate closing costs when deciding whether or not to move, but don’t hesitate to negotiate any of those costs either.

Current vs. Past Mortgage Rate, Cash-Out Refinance and Second Mortgage Considerations

A cash-out refinance is when a homeowner refinances their existing mortgage, taking out a new loan for more money than they currently owe. The difference between the new loan amount and the old mortgage balance is given to the homeowner in cash. This allows the homeowner to tap into their home’s equity and use the money for various purposes, including home renovations.

If you have a higher interest rate than the current market, compare keeping your mortgage — and perhaps refinancing at a lower rate and taking cash out to make upgrades — to getting a new house with a new mortgage at a lower rate.

Either way, a lower-rate market can prove to be very favorable whether you stay and renovate or go and start fresh.

However, if your current rate is lower than the current market, it may be in your best interest to explore a second mortgage option that allows you to access the equity in your home while maintaining your low rate on the first.

Evaluate Your Motivators to Move

Many individuals who decide to sell have outgrown their current house and don’t want to build an addition or are too busy to manage an extensive renovation project. There are also those homeowners who have too small a lot to work with, need to move closer to work or are not that vested in remaining in the neighborhood.

Aside from the desire to upsize your home, some other motivators for selling can be:

  • The need for a less expensive home
  • Readiness to downsize
  • The ability to pay cash for the next home
  • The want or need to relocate for a job, school district, family situation, better climate, etc.
  • Favorable market conditions

Identifying the primary motivators for your move can help you decide if you should sell your house now or wait.

Ready to Downsize?

Those in a life stage where they are often uniquely ready to leave behind the maintenance of their current home. Trading in the three-bedroom house for a low-up keep city condo provides more opportunities for enjoying the retirement years.

Here are some signs downsizing may be right for you:

  • Housing expenses have increased and you want to cut costs
  • There are unused rooms in your home
  • You desire a more low-maintenance lifestyle
  • You want a change, such as being closer to family, relocating to a different climate or moving into an amenity-filled active community.

So, What Is the Bottom Line? Should I Sell My House Now?

Making a final decision as to whether or not you should sell your house is as personal and individual as the home you’re thinking about giving up or buying. But with the right calculations and information, you’re closer to finding a long-term solution that will work best for you. Ready to sell your home and begin looking for your new one? Chat with a Pennymac Loan Expert, or use one of our mortgage calculators and start your home buying journey today.

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Source: pennymac.com

Apache is functioning normally

Guild Mortgage is one name you may have come across lately while searching for a mortgage.

They’re a rapidly growing independent mortgage banker with over 300 physical branches nationwide.

Those branches are located in 49 states nationwide, with their employee headcount around 4,000 at last glance. New York seems to be the one state missing.

They also recently beat out Rocket Mortgage (formerly Quicken Loans) for the number one spot in customer satisfaction for primary mortgage originations by J.D. Power, which is a very big deal given Quicken’s hold on the top spot.

Let’s learn more about this privately held company to determine if they might be a good choice for your home loan needs.

Guild Mortgage Started in San Diego

  • Founded in 1960, originally known as Guardian Mortgage
  • Initially offered FHA loans and financing for homes built by American Housing Guild
  • Now a top-30 mortgage lender nationwide that offers all types of home loans including mortgage refinances and renovation loans
  • A publicly traded company under the symbol NYSE: GHLD

Originally known as Guardian Mortgage, the company began in 1960 in San Diego, California, founded by Martin Gleich.

In the beginning, they offered FHA loans to first-time home buyers and home purchase loans to buyers of homes built by American Housing Guild.

Today, they are a top-10 mortgage lender by purchase loan volume that offers everything from conventional loan programs to USDA loans and jumbo loans, and everything in between.

They are also a correspondent mortgage lender with banking relationships in 47 states, and a major home loan servicer with a loan portfolio worth nearly $40 billion.

In 2021, the non-bank mortgage lender originated $34+ billion in loan volume, and now services more than 200,000 mortgage loans. That means they keep many of the loans they fund.

Guild recently had the best year in their history, with a record $14.6 billion funded in just the first half of 2020.

Guild Mortgage Co. has grown a staggering 27X from 2007, making them one of the fastest growing mortgage companies around.

They’ve also acquired smaller companies along the way, with the most recent Cherry Creek Mortgage, and previously Wisconsin-based Inlanta Mortgage and Cornerstone Mortgage out of St. Louis, Missouri.

Guild is one of the top mortgage lenders in the Northwest, including Portland and Seattle, and also has a growing presence in places like Austin, Texas, Columbia, South Carolina, and Reno and Las Vegas, Nevada.

In 2021, Guild Mortgage acquired Portland, Maine-based Residential Mortgage Services (RMS) to expand their footprint in the Northeast.

Guild Mortgage Quick Facts

  • Retail direct mortgage lender headquartered in San Diego, CA
  • Has 4,000+ employees and 300+ retail branches in 49 states and D.C.
  • Appear to be licensed in all states except New York
  • Recorded $34.2 billion in total loan volume in 2021 (top-30 overall)
  • Did a near-equal split of mortgage refinance and home purchase loans
  • Operates a correspondent banking division with credit unions and community banks in 43 states
  • Services more than 237,000 home loans throughout the nation

What Guild Mortgage Offers

  • Conforming loans
  • Conventional loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Reverse mortgages
  • 1% down loans
  • Renovation loans
  • FHA Solar
  • Manufactured home loans (via Fannie Mae MH Advantage)
  • Doctor mortgages
  • Bridge loans
  • Buydowns

Guild Mortgage offers all types of home loans, including government and non-government mortgages, along with both fixed-rate and adjustable-rate mortgages.

You can get a purchase loan, or a refinance loan, including a rate and term refinance or cash out refinance, and also streamline refinances.

You can apply for a home loan online or visit a local branch, of which there are many (338 at last count).

In the fixed-rate loan department, you can get anything from a 10-year fixed mortgage to a 30-year fixed up to 97% LTV. And they also let you choose your own loan term if you’re looking to refinance without extending the term of your mortgage.

They also offer a 1% down mortgage via their 3-for-1 equity program whereby Guild provides a 2% grant.

When it comes to ARMs, you can choose between 3-, 5-, 7- and 10-year adjustable terms, up to 95% LTV.

If a conforming loan amount isn’t large enough to suit your needs, you can also get a jumbo loan from Guild, including a loan amount as high as $850,000 with just 5% down payment known as the Guild Mortgage Elite Jumbo Program.

They also offer the full spread of government loans, including FHA loans, USDA loans, and VA loans, the latter two of which offer no down payment mortgages.

And while many of these loan options allow for very low credit scores, Guild seems to require higher scores than most competitors.

For example, they want a minimum credit score of 600 for a VA loan, though they allow loan amounts as high as $1 million. Their minimum score for a USDA loan is 620.

You can also get an FHA 203k renovation loan via Guild if you’re buying a fixer-upper.

Guild Mortgage recently launched a loan program called “FHA Solar” that allows borrowers to finance their home and solar panels in one transaction.

Like normal FHA loans, the minimum down payment is 3.5%, which is based on the purchase price of the home before the panels are added to the total cost of the mortgage.

If you’re looking to finance something other than a single-family home, it might be possible to get a mortgage on a non-warrantable condo, something not all lenders offer.

And if you’re a medical professional, their doctor mortgage program allows you to exclude student loan debt and get a mortgage with no money down.

Their most recent offering is a buydown loan that provides a lender-paid 1% interest rate reduction the first year, known as Payment Advantage.

Lastly, Guild offers the Unison HomeBuyer program, which allows home buyers to borrow a down payment in exchange for future home price appreciation. It is available for properties in Arizona, California, Oregon, and Washington.

Guild 3-2-1 Home Program

  • They also offer a special for first-time home buyers known as the 3-2-1 Home program
  • It requires just a 3% down payment to purchase a home
  • And provides a $2,000 Home Depot gift card
  • Lastly it features a grant ranging from $1,000 to $2,500 to offset closing costs or increase down payment

Guild Mortgage recently launched its “3-2-1 Home Program” to help more first-time buyers get their hands on some house keys, even if the property needs a little bit of work.

It allows home buyers to bring in just three percent down payment (which can be funded with a gift) and only requires a minimum 620 credit score.

Additionally, eligible borrowers will receive a $2,000 gift card to The Home Depot and another $1,000 to $2,500 in grant money that can be applied toward closing costs.

The property has to be located within 100 percent of the area median income for the family size of the borrower, unless it’s in an underserved area.

Guild Mortgage CashPass

The lender recently launched “CashPass,” which is their take on the quasi-all-cash offers many mortgage companies have rolled out in recent years.

The way it works is fairly straightforward. When obtaining your mortgage pre-approval, Guild goes a step further by providing a fully underwritten credit approval and a so-called “CashPass Certificate.”

This allows you to shop for a home and then make an offer with no appraisal or financing contingencies.

Guild will then work to close your loan with a traditional home loan before the close of escrow.

If financing isn’t in place by the escrow closing date, Guild or one of its affiliates will guarantee to pay cash for the property and provide permanent financing thereafter.

Simply put, CashPass enables home buyers to compete against other all-cash bidders and/or multiple offer situations.

CashPass is available on primary residences, second homes, and investment properties.

A minimum credit score of 680 is required and it must be a conventional loan.

It’s currently available in the states of AZ, CA, CO, MA MO, NV, OR, PA, SC, TX, and WA.

There is a $1,350 participation fee, which is not charged in the state of Washington.

It can also be combined with Guild’s proprietary bridge loan offering so you can buy before you sell.

Guild Mortgage Rates

  • Guild mortgage rates aren’t publicized online
  • Unlike some of the other major banks out there that do openly share them
  • Hard to know if they’re good, bad, or average without getting a quote and comparing it to other lenders
  • Also be sure to pay attention to any lender fees charged to determine APR

In terms of mortgage rates, it’s hard to say what their current rates are because they don’t advertise them on their website, nor do they have a ratesheet available to the public.

This counters other major lenders like Wells Fargo and Chase, which both advertise their daily mortgage rates on their respective websites.

Of course, advertised mortgage rates make a lot of assumptions, and aren’t necessarily the rates you’d receive anyway. To that end, it might not matter.

My guess is they’re probably on par with or close to what other major home loan lenders offer, though I can’t be sure without seeing them.

As always, take the time to shop around with other lenders to see how they match up. And factor in the closing costs as well when you do.

Mortgage rates aren’t everything (customer service and the ability to close loans also matter a great deal), but they’re certainly very important.

Guild Mortgage eClose Option

The lender recently launched a so-called “eClose option” that allows customers to electronically sign most of their loan documents and substantially reduce the typical paperwork burden seen at loan signing.

Aside from saving more than 250 trees per year, the eClose option comes with enhanced security protections to ensure only those who are authenticated have access to the documents.

The eClose process, which is powered by DocuSign, seems to be a hybrid of sorts with not all documents available for e-signing. Some will still require an ink signature at closing, at least for now.

However, another perk is that loan documents can be viewed as soon as they are released by Guild, meaning customers can review them at any time they desire to avoid feeling rushed at the closing table.

This means they can go into the closing appointment feeling confident and also reduce the time spent there to just minutes instead of potentially hours.

Guild Mortgage Reviews

Guild Mortgage has a 4.96-star rating out of 5 on Zillow based on roughly 7,300 customer reviews.

That near-perfection aside, many past customers indicated that the interest rate they received was lower than expected.

When searching the reviews on Zillow, you can see who the customer worked with, then click that loan officer’s name to see all their personal reviews.

Handy if you’re trying to determine who you want to work with at Guild Mortgage.

On Google, they have a perfect 5-star rating from nearly 2,000 customer reviews, which is pretty impressive given the volume.

Guild Mortgage currently has an A+ BBB rating and has been an accredited business since 2016. Their BBB customer reviews aren’t great, but they often aren’t for any company.

As noted, they also frequently top the J.D. Power mortgage originator rankings, so you should be good in terms of customer service.

Why Choose Guild Mortgage?

  • The number one reason seems to be customer satisfaction
  • They recently matched Quicken atop the J.D. Power rankings
  • Guild also offers lots of different home loan options to choose from
  • And their loan officers may be better educated than the competition thanks to GuildU
  • Also boast an A+ BBB rating and is an accredited business
  • Can get started online via a digital mortgage application in minutes

There are lots of options when it comes to obtaining a mortgage. So why choose Guild Mortgage?

Well, as noted, they’ve got a variety of home loan programs available, including some unique offerings, so they’ve probably got you covered in most situations.

This is especially true if you have little or nothing in the way of a down payment, though they may require higher credit scores than other lenders.

They are also one of the top rated mortgage companies in terms of customer satisfaction, matching Quicken Loans in the most recent rankings from J.D. Power.

That doesn’t guarantee a good loan experience, but it means something compared to other large lenders that rank below them.

Part of that might have to do with their GuildU corporate university that educates its loan officers in an effort to make them more knowledgeable than the competition.

But loan officer quality can vary within a single company, especially at a large one with thousands of employees.

Guild Mortgage also has a helpful website, complete with tips and a variety of mortgage calculators to help guide your decisions.

All in all, they’re certainly worth including in your home loan search seeing how popular and large they’re becoming. My guess is they’ll be a household name in the near future.

Lastly, because Guild Mortgage is a major home loan servicer, they may not sell off your loan to another company, which can be nice to avoid any confusion in making future monthly payments.

(photo: Sean O’Neill)

Source: thetruthaboutmortgage.com

Apache is functioning normally

It’s time for another mortgage review, this time we’ll take a hard look at “New American Funding” to see if they should be included in your home loan search.

They call themselves a family-owned business dedicated to helping other families improve their quality of life.

That sounds like they have your best intentions in mind, especially when navigating what is arguably one of the biggest life decisions, buying a home.

New American also refers to themselves as the “largest Hispanic-owned mortgage company in the United States.”

And their mission is to increase lending to underserved communities, including Black and Latino borrowers. Let’s find out more about them.

New American Funding Fast Facts

  • Retail direct-to-consumer mortgage company with 180 branches nationwide
  • Launched in 2003, headquartered in Tustin, California (Orange County)
  • Started by husband and wife team Rick and Patty Arvielo
  • Originally a 40-employee call center, workforce now close to 5,000
  • Offers home purchase financing and refinance loans
  • Licensed to do business in all states except Hawaii
  • Funded $31.5 billion in home loans during 2021 (nearly a top-25 lender nationally)
  • Services more than 200,000 loans worth approximately $54 billion
  • Ranked #1 loan servicer by J.D. Power in the 2022 study

New American Funding got started back in 2003, which was around the time the housing market was booming.

Just a few short years later, the subprime mortgage crisis hit, and hundreds of lenders didn’t survive.

So I suppose that’s a testament to the resolve of New American Funding, which is a DBA of parent company Broker Solutions, Inc.

Despite being a young company at the time, they were able to get through the Great Recession and become a mortgage powerhouse just a decade later.

As noted, they are a family company, with husband and wife team Rick and Patty Arvielo the founders. Rick is currently CEO, while Patty is the president.

The direct lender is based out of Tustin, California, which is in the heart of Orange County, home to scores of mortgage lenders and related real estate companies.

The pair grew New American Funding from a 40-employee call center into one of the largest mortgage lenders in the country in less than 20 years.

Today, they count 4,700 individuals as employees, have nearly 200 branches nationwide, and maintain a loan servicing portfolio consisting of over 200,000 loans worth about $54 billion.

Last year, the company funded more than $30 billion in home loans, which puts them very close to the top-25 mortgage lenders nationally.

Roughly two-thirds of their business consisted of refinance loans, with the remainder home purchase loans.

Note: They do not lend in the state of Hawaii at this time.

New American Is the #1 Hispanic Mortgage Lender

As noted, New American is on a mission to increase homeownership for underserved communities, especially Black and Latino borrowers.

Last year, 36% of their home purchase loans went to minority borrowers, compared to just 25.5% for all lending institutions, based on 2020 HMDA data.

They are also the #1 lender to Hispanic borrowers, with a larger percentage of their loans going to Hispanic borrowers versus any other lender in the top-25.

Additionally, their share of purchase lending to Black borrowers was 85% higher than the industry average, a result of their “New American Dream” initiative launched in 2016.

They are also committed to lending $25 billion in new mortgages to Hispanic borrowers by the year 2024, and $20 billion to Black borrowers over the next seven years.

When it comes to diversity at the company itself, 23% of the company’s workforce is Hispanic, 45% of the company’s employees are minorities, and 60% are women.

What Loan Types Does New American Funding Offer?

  • Home purchase financing
  • Home renovation loans
  • Refinance loans: rate and term refi, cash out refi, and streamline refis
  • Conventional loans: Conforming and jumbo
  • Government loans: FHA, VA, and USDA loans
  • ARMs: 5/1, 7/1, 10/1 varieties
  • Fixed mortgages: 30-year and 15-year options
  • Choose your own term mortgages
  • Renovation loans and Energy Efficient loans
  • Non-QM loans (self-employed borrowers)
  • Interest-only mortgages
  • HELOCs
  • Buydown Loans (such as a 3-2-1- buydown)

One great thing about New American Funding is that you can get pretty much any type of home loan under the sun.

This includes home purchase loans, home renovation loans, rate and term refinances, cash out refinances, and streamline refinances.

They are a Fannie Mae, Freddie Mac, and Ginnie Mae direct lender, seller, and servicer, so they’ve got all the conforming and government loan options you can think of.

That includes the usual suspects like conforming mortgages, FHA loans, USDA loans, and VA loans. But that’s not all.

They also offer interest-only mortgages, jumbo loans, non-QM loans, reverse mortgages, and some proprietary offerings like the “I CAN Mortgage.”

So what is an I CAN Mortgage you ask? Well, it’s simply a choose your own term mortgage, that allows for custom terms ranging from 8 to 30 Years.

For example, if you’re 7 years into a 30-year fixed and want to refinance your mortgage to take advantage of today’s low mortgage rates, you could go with a 23-year term instead of restarting the clock.

This also works for new purchases, so you can just start with a 24-year fixed instead of the standard 30-year fixed to save some dough and own more of your home sooner.

Their so-called Self Employed Mortgage, which may be considered non-QM, allows for the use of bank statements, asset depletion, or just one-year of tax returns to qualify.

They also offer HELOCs, including fixed-rate, adjustable, and hybrid options for those looking to tap equity, along with renovation loans such as the FHA 203k refinance loan and Fannie Mae Homestyle.

New American also operates both a builder and real estate lending division, so they may be a good fit for someone buying a brand-new home or building a home (new construction).

Lastly, they offer Energy Efficient Loans for those looking to finance a home that is already energy-efficient or to make an existing property simply greener.

Pathway to Homeownership Initiative

In February 2023, NAF launched its “Pathway to Homeownership” initiative to help customers purchase their first home in designated areas throughout the country.

It provides up to $8,000 in assistance that can be used for down payment or other closing costs. And best of all it doesn’t need to be paid back.

There are no income limitations, and it can be combined with other down payment assistance programs.

To qualify for Pathway, you must be a first-time home buyer with a minimum credit score of 620. And the property must be a one-unit, single-family home.

Down payments as low as 3% are acceptable. Be sure to inquire with your NAF loan officer to determine if you’re eligible.

NAF also recently partnered with Uqual, “a full-service loan readiness company,” to help prospective home buyers make the leap from renting.

It seeks to turn a loan denial into an approval by improving an applicant’s credit, lowering their debt, and increasing their savings.

Those who complete the loan readiness program and use NAF for their mortgage needs are eligible for a $500 lender credit.

Exclusive Mortgage Provider for Patch

In late February 2023, New American Funding announced that it became the exclusive mortgage provider for “hyper-local news” website Patch.

The partnership will result in NAF placements on the mortgage and real estate hub on each of Patch’s community websites.

And the lender will feature in Patch’s weekly newsletters in over 1,200 communities nationwide.

The link up makes sense because NAF is licensed in all 50 states and has loan officers located throughout the country.

Applying for a Mortgage with New American Funding

  • They have a short form you can fill out on their website to get started
  • Then a loan officer will call you to go over your loan scenario and options
  • You can also call them directly or use their branch/loan officer directory to find someone specific in your area
  • Loan process appears to be somewhat digital, allowing for document uploading and loan tracking online

New American Funding a direct-to-consumer retail mortgage lender, meaning you work directly with the company to close your loan.

At one time, they ran a wholesale division, but chose to close it in 2016 to focus on their growing retail operations.

They say you can get pre-approved for a mortgage in as little as 24-48 hours, which is a bit slower than some fully digital lenders that can do the same in minutes, such as Rocket Mortgage or Better Mortgage.

But they do offer the ability to apply online or over the phone. If you get started via the website, you basically fill out what amounts to be a lead form. Then someone will contact you by phone.

You can also look up specific loan officers via the branch directory on their website if you want to ensure you get someone local and highly recommended.

Once your loan is submitted, they offer a digital process that includes uploading necessary loan documentation, along with the ability to track your loan progress online via the borrower portal.

You also get a dedicated loan officer that will help you along the way, which differs from some of the startups that only provide assistance as needed.

New American Funding’s Mortgage Rates

I’m all about transparency, and fortunately New American is too when it comes to their mortgage rates.

They openly advertise them right on their website for all to see. You can check rates daily for the 30-year fixed, 15-year fixed, FHA 30-year fixed, and VA 30-year fixed.

It should be noted that their rate assumptions are very tough, calling for a 740+ FICO score, 60% LTV, primary residence, with up to one discount point on their standard 30-year fixed mortgage.

In other words, if you have a lower credit score, less equity in your home, need cash out, or don’t occupy the property, the interest rate could be substantially higher.

The good news is their advertised rates appear to be quite low, so if you are a good borrower, they might be quite competitive.

As always, take the time to check out the rates of other lenders to ensure you do your due diligence.

In terms of lender fees, it’s unclear if they charge a loan origination fee or separate fees for underwriting and processing. Be sure to inquire when speaking with your loan officer.

New American Funding 14 Business Day Close Guarantee

If you happen to be buying a home, the company has a “14 Business Day Close Guarantee” to ensure you get to the finish line quickly, especially in a competitive market.

They say they have industry leading turn times because they’re an “all-inclusive mortgage banker.”

Their operations staff, including loan underwriters, doc drawers and funders, work under one roof, enabling them to close loans fast.

They offer 24-hour credit approval by senior underwriters and 24-hour underwriting turn times on conditions.

The 14-day window begins when your initial application package is complete and you have authorized credit card payment for your home appraisal.

If they fail to perform as agreed, a credit of $250 will be applied toward closing costs. While it’s not much money, the fact that they can close purchase loans in just two weeks is pretty attractive.

New American Funding and EasyKnock

In late January 2023, New American Funding and EasyKnock announced partnership “to offer innovative solutions to underserved communities.”

It’s unclear exactly what those solutions are, but my assumption is that the lender will offer home loan programs to EasyKnock customers.

These will allow borrowers ” to access their home equity through credible and non-traditional means,” which in turn helps keep them in their local communities and schools.

This tells me it might be a home equity product, such as a HELOC.

EasyKnock allows homeowners to sell to EasyKnock but remain in the properties as renters.

New American Funding Reviews

New American has a 4.87-star rating out of 5 on Experience.com from around 180,000 reviews.

Yes, nearly 200,000 customer reviews and a near-perfect rating. That’s truly impressive.

They also have a 4.91-star rating out of a possible 5 on Zillow from 8,500+ customer reviews.

Many of their reviews on Zillow indicate a lower interest rate and/or lower closing costs than expected.

Similarly, they have a 4.9/5 rating on LendingTree from nearly 60,000 reviews, with 99% of customers saying they’d recommend them to others.

Lastly, the company boasts an A+ Better Business Bureau rating and has been accredited since 2004.

So they appear to be very well-liked, though experiences can always vary based on individual circumstances, especially at a large company.

Tip: You can view the ratings of specific loan officers near you if you go the branches tab on their website, select a location, then scroll down to “Meet the Team.”

This allows you to see the staff who work in a particular office, along with their individual ratings as loan officers.

If you like what you see, you can apply for a home loan directly with that individual, or simply get in touch if you have questions.

Pros and Cons of New American Funding

The Good:

  • Offer virtually every home loan type imaginable including reverse mortgages and HELOCs
  • Can select your loan officer from an online directory and/or visit a physical branch
  • Direct lender, seller, and loan servicer with quick turn times and fast closings
  • Appear to offer competitive mortgage rates
  • Excellent customer reviews across all ratings websites
  • A+ BBB rating, accredited company since 2004
  • 14 Business Day Close Guarantee for home purchase loans
  • Can manage your funded loan with the New American Funding My Mortgage App
  • They service their own loans instead of transferring them
  • Free mortgage calculators, mortgage glossary, and market update on their website

Potential Bad:

  • You must speak to a loan officer before you can apply
  • Not available in Hawaii

New American Funding vs. AmeriSave

AmeriSave New American Funding
Digital application Yes Yes
Branch locations No Yes
Loan types offered Conventional, FHA, USDA, VA, jumbo Conventional, FHA, USDA, VA, jumbo, reverse, HELOC
Minimum FICO score 600 580
Application fee n/a n/a
Will service your loan? Yes Yes
Loyalty program No Yes
Licensed to do business in… 49 states and D.C. All 50 states and D.C.
BBB rating A+ A+
Zillow rating 4.68/5 from 2,400 reviews 4.91/5 from 8,800 reviews

(photo: Cristian Ramírez)

Source: thetruthaboutmortgage.com

Apache is functioning normally

If you’ve heard of Dave Ramsey, you might have come across Churchill Mortgage, which happens to be his mortgage lender of choice.

Why? Because like Dave, they believe that the real American Dream is debt-free homeownership, not a massive mortgage hanging over your head through retirement.

To that end, they do things a little differently than the rest of the industry. Let’s learn more about what makes them unique.

The History of Churchill Mortgage

  • Direct-to-consumer mortgage lender founded in 1992 by Mike Hardwick
  • Headquarters are located in Brentwood, Tennessee
  • Employs more than 400 people with branches in dozens of states
  • Does business in 46 states nationwide
  • Funded more than $2 billion in home loans last year
  • Did the most business in Tennessee, Texas, and California
  • Their main product pitch is the money-saving 15-year fixed mortgage

Churchill Mortgage is a privately-owned company that was founded in 1992, meaning it has been around for nearly 30 years.

In the mortgage industry, that makes it one of the older companies still standing and/or independent, given many were lost during the Great Recession.

It was founded by Lawson H. (Mike) Hardwick, III in Brentwood, Tennessee. He was previously one of the principal founders of Franklin National Bank until it was acquired by Fifth Third Bank.

Today, his company has more than 400 employees across a nationwide branch network in 46 states.

They don’t appear to do business in Delaware, Hawaii, Nevada, or New York.

In 2019, the company originated more than $2.2 billion in home loans, a record year for Churchill Mortgage.

Dave Ramsey’s Spin on Mortgages

There’s clearly a big link between Churchill Mortgage and Dave Ramsey, with the latter’s recommendations found on the former’s website.

As you can see from the illustration above, Dave believes in a few core principles.

First off, he wants you to be debt-free when it comes to consumer debt, such as credit cards, student loans, personal loans, etc.

Second, he wants you to have at least 3-6 months of cash in an emergency fund, which is also handy for meeting minimum reserve requirements with lenders.

Speaking of mortgages, he’s all about the 15-year fixed, as you might already know, given its much cheaper interest expense versus the more popular 30-year fixed.

And he expects you to come with a down payment of at least 10%, while only committing 25% of your take-home income toward a monthly mortgage payment.

What Churchill Mortgage Offers

  • They originate conventional, FHA, VA and USDA mortgages
  • You can also get a no credit score home loan
  • Unclear what individual loan programs are offered
  • They don’t advertise their mortgage rates or disclose lender fees on their website

One negative to Churchill is the lack of information regarding loan products.

While their website is filled with lots of helpful mortgage tips and how-to articles, they’re a little light on company details.

After some digging, I was able to see that they offer conventional, FHA, VA and USDA mortgages.

That’s good news because it means all the major bases are covered with regard to loan type.

But in terms of individual loan programs, such as 30-year fixed, 15-year fixed, 5/1 ARM, etc., there’s no information.

I assume they offer all the most popular loan programs, but can’t say so definitively. It’s a bit bizarre that this information isn’t readily available.

Additionally, they make no mention of mortgage rates or lender fees, so we’re also in the dark on these key factors as well.

Without knowing any of this stuff, it’s very difficult to determine how competitive Churchill is versus other mortgage lenders.

Churchill Mortgage’s No Score Loan

  • They offer mortgages without a credit score
  • Because Dave Ramsey doesn’t have a credit score and his listeners may not either
  • Alternative credit such as a cell phone bill or utility bill is used instead
  • This establishes a history of payment behavior to determine creditworthiness

However, one of their more unique mortgage offerings is their “no score loan,” which allows you to get a mortgage without a credit score.

Why would they offer this you ask? Well, once again Dave Ramsey comes into the picture. Apparently, he doesn’t have a credit score, since he eschews all credit.

And there’s a good chance many of his loyal listeners are in the same boat, yet don’t have the money to pay all-cash for a home.

That’s where their no credit score home loans come in – they rely on alternative credit, such as a cell phone bill, utility bill, insurance premium, school tuition, child care, or rent payments.

This allows an underwriter to establish a history of on-time payments using that alternative credit.

In terms of approval, they say a 15-year fixed with at least 20% down provides the best chance of getting to the finish line.

They May Recommend a 15-Year Fixed

Speaking of 15-year fixed mortgages, there’s a good chance it might be recommended to you if you apply with Churchill.

As noted, they are big proponents of Dave Ramsey and being debt-free, and paying off a mortgage in half the time is a big step in achieving that goal.

Of course, a 15-year fixed will cost you about 1.5X your typical monthly mortgage payment, so it’s not for everyone.

In fact, many won’t qualify for a 15-year fixed due to affordability constraints and DTI maximums.

If Dave were calling the shots, he’d probably say don’t buy the house unless you can afford the 15-year fixed.

It’s unclear what Churchill’s loan officers would say, but I’m sure they offer other loan products, such as the 30-year fixed.

Applying for a Loan with Churchill Mortgage

  • At the moment you fill out a short form on their website
  • Then you are connected with a loan officer from one of their branches
  • The rollout of Churchill Next may change that process to a fully digital one
  • There is also a smartphone app that allows you to upload documents and check loan status

Like many other lenders, you start by filling out a short form on their website. This include providing basic contact info, at which point you’ll be matched up with a Home Loan Specialist.

They refer to this as the “Churchill Checkup,” a 10-minute call to help align your mortgage with your personal goals.

While the company has branches nationwide, there are out-of-state branches that serve different states. So it’s possible your loan representative could be located halfway across the country.

In any case, once paired up, they will ask you what your housing goals are and then present the best loan options available to you.

This process will likely change thanks to its new initiative known as “Churchill Next,” which is their digital transformation powered by tech company Infosys.

The partnership will enable borrowers to interact with the company in any way they wish, without compromising the values and trust Churchill is built on.

In other words, in the future you might be able to apply for a home loan via the app or website without speaking to a human, if that’s your desire.

Additionally, the use of technology should lower company costs, which could translate to cheaper mortgages for its customers.

The Churchill Smartphone App

The company already offers a smartphone app via both the App Store and Google Play.

It lets users play around with mortgage calculators to determine what they can afford, or learn more about mortgages via helpful guides.

Additionally, you can get in touch with a loan officer or check loan status if you’ve already submitted an application.

It also gives you the ability to send documents securely, either by taking a picture or sending a file on your phone. So you can satisfy loan conditions on the go.

As Churchill Next gets integrated, you might be able to do just about everything via the app in the near future.

Rate Secured by Churchill Mortgage

If you’re in the market to purchase a home, Churchill lets you lock your rate for up to 90 days while you search for a property.

This is known as a pre-lock in the mortgage industry because you’re securing a mortgage rate before actually applying for a home loan.

Now if rates go up during that time, your interest rate remains unchanged.

But if rates go down, you get to take advantage of the lower rates available.

They also let you lock in the rate for an additional 90 days if you’re unable to find a home in the initial 90-day period.

This is similar to the RateShield Approval from Quicken Loans.

Churchill Certified Home Buyer Approval

Prospective home buyers can also take advantage of the so-called Churchill Certified Home Buyer pre-approval, which is stronger than your everyday pre-approval.

Instead of just submitting financial documents to a loan officer, your information is actually reviewed by a loan underwriter, who can conditionally approve you for financing on a new home.

As such, you and the home seller will have peace of mind that your mortgage will be approved if and when you find your dream home.

This can give you an edge over other buyers, and even help you compete with all-cash buyers too in hot housing markets.

And because you’ve done the bulk of the legwork up front, it should make for a smoother home buying process once you’ve found the right home.

Churchill Mortgage Reviews

I dug around some review sites to see what people thought of Churchill Mortgage. Over at the Better Business Bureau, they have an A+ rating and have been accredited since 1995.

While customer reviews aren’t factored into the BBB calculation, there were only three reviews on the BBB website. They were all one or two stars out of five. But three reviews isn’t much of a representation.

They had over 16,000 customer reviews as of this writing at SocialSurvey, with a 4.85 rating out of 5. Most customers seem extremely satisfied.

Similarly, they come highly rated at Zillow, with a 4.97 star rating out of 5, based on nearly 400 customer reviews.

So all in all, they appear to come highly recommended by past customers. And that makes sense since the company’s goal is to help you achieve the American Dream of homeownership.

Pros and Cons of Churchill Mortgage

The Good

  • Seem to genuinely interested in educating customers on mortgages
  • May recommend loan products that get you out of debt faster
  • Offer mortgages with no credit score
  • Wide array of loan programs available
  • Have a digital loan process via Churchill Next
  • Offer a free smartphone app
  • Can pre-lock your rate and get a pre-approval reviewed by an actual underwriter
  • A+ rating with Better Business Bureau
  • Good reviews from past customers

The Potential Bad

  • Not licensed in Delaware, Hawaii, Nevada, or New York
  • Unclear what lender fees they charge
  • Do not advertise their mortgage rates
  • Their debt-free strategies may not be a good fit for all applicants
  • Don’t offer home equity loan/line products

Source: thetruthaboutmortgage.com

Apache is functioning normally

Today we’ll review Texas-based retail mortgage lender “Envoy Mortgage,” which is a Fannie Mae, Freddie Mac, and Ginnie Mae approved seller/servicer that is licensed in 48 states.

Envoy Mortgage Quick Facts

  • Founded in 1997 as First Houston Mortgage, became Envoy in 2008
  • Independently owned national retail mortgage lender
  • Headquarters in Houston, Texas
  • Licensed do to business in 48 states and D.C. (not in Alaska or Hawaii)
  • 150+ branch locations located throughout the U.S

They’ve been around since the late 1990s, but changed their name in 2008, from First Houston Mortgage to Envoy Mortgage. This may have been a reflection of their ambition to grow nationally.

At that time, they had annual loan volume of roughly $700 million and a staff of 350 employees.

It’s unclear how large they are today, but the company mentioned doing more than $4 billion in home loan volume annually back in 2018.

They used to operate a national correspondent lending division out of Monroe, Louisiana until it was sold to New Penn Financial, but now focus solely on retail lending.

Envoy Mortgage’s tagline is it wants you to “love your mortgage experience.”

How to Apply for a Home Loan with Envoy Mortgage

  • Customers work with licensed loan originators nationwide
  • You can start an application online and get paired up with a loan officer
  • Or select a loan officer by name or location if you prefer to pick someone specific
  • You can also visit a branch location if one is located near you

Like several other lenders who have yet to go fully digital, at least for the initial application portion, you start by connecting with a loan originator.

On their website, you select that you are or are NOT already working with a loan originator.

If you are, you click on “find my loan originator” and then enter a name to find that individual.

If you aren’t already working with someone, you click “apply now” and fill out a loan application online. Once completed, you will be matched up with a loan originator in your area who will then contact you.

Alternatively, you can use the branch locator on their website to find an office nearest you, then connect with that individual if you prefer someone close by.

They say it takes about 20 minutes to complete the application, which is quite a bit longer than other digital mortgage lenders like Rocket Mortgage and Better Mortgage.

Anyway, once connected with a loan officer, they will help you through the process from start to finish.

EnGen – The Streamlined Digital Mortgage Application

In February 2020, Envoy Mortgage launched its version of a digital mortgage application known as “EnGen,” which is short for “ENvoy GENeration.”

Now Envoy customers can easily connect bank statements, W-2s, and tax returns to their loan application instead of having to scan or upload documents.

Additionally, they can track their loan progress from their phone, tablet or computer and receive automated text and email alerts.

At the same time, EnGen gives Envoy loan originators new tools to simplify their workflow, which should allow them to provide even better customer service.

What Types of Home Loans Does Envoy Mortgage Offer?

  • Home purchase, refinance, renovation, and construction loans
  • Conventional, government, and non-agency loans
  • Appear to specialize in VA loans
  • Offer both fixed-rate and adjustable-rate mortgages

Now let’s talk about their product offerings, which are pretty broad. You can get a home purchase loan, refinance loan (rate and term or cash-out), and even a home renovation loan or construction loan with Envoy Mortgage.

Additionally, the offer non-agency loans, those which do not fit the guidelines of Fannie Mae, Freddie Mac, or Ginnie Mae. It’s unclear if this is jumbo loans or something more unique.

When it comes to government loans, they offer all three, including FHA loans, USDA loans, and VA loans.

Speaking of, the company offers a VA Boot Camp (complete with certifications) to train its loan officers and outside real estate agents on the ins and outs of VA loans.

So if you’re a veteran home buyer or existing homeowner, they should be well-versed on the subject of VA loans.

In terms of individual loan programs, they offer both fixed-rate mortgages and adjustable-rate mortgages, including the typical ones like 30-year fixed, 15-year fixed, 5/1 ARM, and so on.

Envoy Mortgage Rates and Lender Fees

One slight negative to the company is the lack of advertised mortgage rates.

Some lenders, such as New American Funding and Third Federal, will list them right on their website, while others prefer to stay mum.

This doesn’t mean their rates aren’t competitive, but if they had outstanding rates, they’d maybe feature them on their website.

Additionally, they don’t mention anything about their lender fees, so we don’t know if they charge a loan origination fee or other fees.

These are all very important considerations when shopping your home loan. Without having these answers, it’s difficult to assess Envoy Mortgage.

Envoy Gift of Home Program

In an effort to assist those who may have struggled during these financially challenging times, Envoy Mortgage has launched the “Gift of Home” program.

From January through June 2021, the company will surprise 50 of its customers from across the country with one month’s mortgage payment, up to $3,000 in value per household.

They say some of the recipients are among the hardest hit in their communities, which includes military veterans, first responders, nurses, teachers, and small business owners, along with their employees.

The first gift recipient of the program is getting all of their mortgage payments paid for the year 2021, from January through December. It’s their way of giving back to the community.

Envoy Mortgage Reviews

They have customer reviews on their own website, which totaled over 25,000 as of the time of this writing.

The average customer review was 4.9 out of 5, and 97.4% of customers would recommend Envoy Mortgage to friends and family.

As for outside reviews, they’ve got 4.94 stars out of 5 on Zillow with nearly 1,700 customer reviews. That’s pretty impressive, and may be a testament to their excellent customer service.

On LendingTree, they’ve got a 4.6-star rating out of 5 from roughly 500 customer reviews, along with a 96% recommended rating.

They are also a Better Business Bureau accredited company and have been since 2003, with an ‘A+’ rating at the moment.

The Pros and Cons of Envoy Mortgage

The Good

  • Offer all types of home loans
  • Branch locations in many states and cities nationwide
  • Rolling out a digital mortgage solution called EnGen
  • Very good reviews from past customers
  • A+ rating with Better Business Bureau (Accredited since 2003)
  • Free mortgage calculators on their website

The Potential Bad

  • Not licensed in Alaska and Hawaii
  • Do not advertise their mortgage rates
  • Do not disclose lender fees on their website

(photo: Noé Alfaro)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Today we’ll do an in-depth review of CrossCountry Mortgage, which as the name implies, is a nationally-licensed mortgage lender that offers its home loan services in all 50 states and the District of Columbia.

Given their name, it’s a good thing they do. The consumer direct mortgage lender is based out of Brecksville, Ohio and has been around since 2003.

Perhaps their biggest claim to fame is the fact that they were the main lender partner of Costco Mortgage. So if you’re a Costco customer, you may have come across them.

Now that the Costco mortgage program has wound down, they’re flying solo, but still expected to originate billions in home loans annually.

Read on to learn more about this direct mortgage lender and their many offerings.

CrossCountry Mortgage Fast Facts

  • Founded in 2003 by CEO Ronald J. Leonhardt, Jr
  • Headquarters in Brecksville, Ohio
  • Nationally licensed direct lender in all 50 states
  • More than 7,000 employees at over 600 branches
  • Fannie Mae, Freddie Mac, and Ginnie Mae Approved Seller/Servicer since 2012
  • Funded $52+ billion in home loans in 2021, own a loan servicing portfolio worth $2.387 billion+
  • The main mortgage lender partner for Costco (program has since closed)

Interestingly, CrossCountry Mortgage began as a mortgage broker before transforming into a full-scale mortgage lender themselves.

Today, they claim to be a top-3 retail mortgage lender, with aspirations to go even higher over time.

In 2021, they funded roughly $52.4 billion in home loans, with a high concentration of loans originated in California, Florida, Illinois, and Ohio, per HMDA data.

In 2019, they acquired Chicago, IL-based PERL Mortgage, and a year earlier, Chicago-based bemortgage. This has allowed them to expand their footprint, especially in the Midwest.

Most recently (May 2020), they acquired the assets of of New Jersey-based mortgage lender First Choice Loan Services Inc., a Costco Mortgage partner.

They also own subsidiaries BestRateUSA and Veterans Lending Group, the latter being a VA loan lender.

And were recently named to Inc. Magazine’s list of 5000 fastest growing private companies in the United States. Let’s learn more about them.

Official Mortgage Partner of the Cleveland Browns

Aside from their past affiliation with Costco, they are also the Official Mortgage Partner of the Cleveland Browns

During the 2021 season, the CrossCountry Mortgage ‘Dedicated Dawgs’ Sweepstakes will hand out nearly $90,000 in cash and prizes to lucky winners.

The biggest being $50,000 in cash to create your very own “Ultimate Dawg Pound” backyard party.

There will also be weekly prizes, including:

  • Passes to a Browns game from the CrossCountry Mortgage Landing
  • Tickets for the company’s “Best Seats in the House” experience
  • A D.A.W.G. Rover remote controlled cooler
  • And miscellaneous Cleveland Browns gear

Additionally, they will deliver several fan-friendly experiences to every Cleveland Browns home games, including a Hype Cam, which creates personalized, 360-degree pregame videos that can be shared.

Applying for a Home Loan with CrossCountry Mortgage

First, you fill out a short pre-qualification form on their website. Then a licensed loan officer will contact you within 24 hours to go over eligibility and your loan options.

This will involve a full pre-qualification to ensure you qualify, followed by a consultation to go over loan options and mortgage rates.

You can also use the “find a loan officer” feature to search for a loan officer by name (if you’ve been referred or know someone specific), or search by branch location if you want to speak to someone nearby.

These individuals have their own websites, which have different application forms, some powered by digital mortgage tech company Blend.

So it appears you can apply for a mortgage without actually speaking to anyone. And get personalized rates and compare loan options depending on the branch in question.

Once approved for a loan, there is functionality to upload documents, track loan status, and more.

FastTrack Credit Approval Program

CrossCountry Mortgage offers its FastTrack Credit Approval program, which is designed to give you an edge in a competitive housing market.

First, you apply for a mortgage and provide all the required documentation, such as W-2s, bank statements, and tax returns. Your credit history will be reviewed.

Then you’ll receive two letters – a buyer letter that shows you have Credit Approved status subject to terms and conditions.

And a seller letter (pre-approval letter) you can share with a homeowner to show your approved loan amount, along with the statement that you’ve been Credit Approved.

Even if you haven’t found a home yet, you can clear conditions on your loan that aren’t related to the property itself.

In fact, your loan could close in as few as 7 days after signing a purchase contract, assuming you’ve cleared most of your borrower-specific conditions.

Regardless of how you approach it, they aim to close in 21 days, which is a plus for those buying a home on a tight deadline.

What Home Loan Products Does CrossCountry Mortgage Offer?

  • Conventional loans (Fannie/Freddie)
  • Government loans (FHA, USDA, VA)
  • FHA 203k loans
  • FHA cash-out refinance
  • Jumbo loans up to $3 million
  • Jumbo renovation loans
  • Streamline refinances for FHA, USDA, and VA
  • Reverse mortgages
  • HELOCs
  • Home equity loans (HELs)
  • Bridge loans
  • Buydown loans
  • ADU loans
  • First-time home buyer grant programs and down payment assistance

CrossCountry Mortgage offers home purchase loans, mortgage refinances, renovation loans, home equity lines of credit, and reverse mortgages.

In terms of available loan options, they’ve got all the main offerings, including conventional loans, both conforming loans backed by Fannie/Freddie and jumbo loans for those who require larger loan amounts.

Those looking for a government home loan are in luck as well since they offer FHA loans, USDA loans, and VA loans.

If you need a renovation loan, they offer the FHA 203k program and a jumbo renovation loan. Those who prefer a HELOC to make home renovations can also acquire one via CrossCountry Mortgage.

They’ve also got the full slate of streamline refinance programs for all loan types, bridge loans, mortgage buydowns, and even ADU loans for those with accessory dwelling units.

Regarding specific loan programs, their fixed-rate mortgages are available in terms ranging from 10 years to 30 years.

For their adjustable-rate mortgages, 3/1, 5/1, 7/1, and 10/1 ARMs appear to be available.

They also offer reverse mortgages backed by the FHA, known as Home Equity Conversion Mortgages (HECM).

In late 2022, they launched a new closed-end home equity loan (HEL) that allows homeowners to tap their home equity. It is a fixed-rate second mortgage.

And in April 2023, announced the availability of the Freddie Mac BorrowSmart Access program, which offers up to $3,000 toward down payment and/or closing costs.

They’ve since upped the ante with “CCM Smart Start,” which provides first-time home buyers with up to $4,000 to cover down payment costs.

CrossCountry Mortgage Rates and Fees

They do not advertise their mortgage rates on their website. However, you can request a free mortgage rate quote by filling out a short form online.

After you complete it (shouldn’t take more than a minute), a loan officer will contact you to provide quotes and loan options, and next steps to generate a pre-approval if desired.

Because they don’t disclose rates, it’s unclear how competitive they are relative to other mortgage lenders.

Additionally, they don’t disclose lender fees on their website, so again, you’ll need to make contact with a loan officer to find out those details.

CrossCountry Mortgage Reviews

On Zillow, CrossCountry Mortgage has an amazing 9,124 reviews with a rating of 4.97 out of 5 stars.

That’s probably as close to perfection as you can get – the number of reviews is also a good sign because it’s a very large sample size.

Most reviews note that both the interest rate and fees were lower than expected, which gives us a window into their competitiveness.

They also have 3.5 out of 5 stars on the Better Business Bureau website, but it’s only based on 61 customer reviews.

And it’s not as bad as it sounds seeing that most BBB customer ratings are poor because they’re driven by complaints. Consumers don’t typically review companies on the BBB website.

The near-10,000 reviews on Zillow is probably the best gauge of how well-liked they are as a company.

CrossCountry Mortgage Pros and Cons

The Good Stuff

  • A+ rating with BBB, accredited since 2016
  • Lots of different loan programs available including second mortgages
  • Ability to apply online with certain branches
  • Use Blend technology for the mortgage application
  • Highly-rated on Zillow by past customers
  • Licensed in all 50 states and DC
  • Free mortgage calculators and help articles on website
  • They service many if not all of the home loans they originate
  • Offer a Spanish mortgage application and Hispanic-focused website

The Potential Bad Stuff

  • Do not advertise mortgage rates
  • No mention of lender fees
  • Unclear if they charge an application fee (e.g. rate lock fee or upfront appraisal fee)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Today we’ll take a look at Southern California-based Lenox Financial Mortgage Corp., which also does business as WesLend Financial.

First things first, be sure not to confuse them with Atlanta, GA-based Lenox Financial, whose famous radio pitch is/was, “the biggest no-brainer in the history of earth.”

To further muddy the situation, Lenox/WesLend has a very similar slogan, a slightly slimmed down, “home of the biggest no brainer” tagline.

And it appears their flagship product is also the no cost refinance. So the first step here might be differentiating the two companies and their DBA WesLend Financial.

Let’s learn more about them to determine if they could be a good choice for your home loan needs.

Lenox Financial/WesLend History

  • Company founded in 1999
  • Headquarters are in Santa Ana, CA
  • CEO and founder is Wesley Hoaglund
  • Direct mortgage lender with roughly 25 loan officers
  • Also operates a wholesale lending division and loan servicing department

WesLend Financial Corp., which is a DBA of Lenox Financial Mortgage Corporation, is a direct mortgage lender licensed in 42 states nationwide.

They don’t appear to do business in Alaska, Delaware, Montana, Nebraska, Nevada, North Dakota, Wisconsin, Wyoming, or the District of Columbia at the moment.

The company is a full-service mortgage banker that offers a wide variety of loan programs via both the retail and wholesale channels.

They are a direct seller/servicer with Fannie Mae and Freddie Mac, and also offer all types of government home loans, including FHA, USDA, and VA loans.

Lenox/WesLend got started more than 20 years ago, founded by current CEO Wesley Hoaglund.

They appear to employ about 25 retail loan officers who work in a call center in Santa Ana, California, though there are additional branches scattered across the country.

How to Apply with Lenox Financial/WesLend

  • Can apply directly on their website
  • Or you can request a quick quote and a call from a loan officer
  • Their website also features a live chat option if you have questions
  • You can also call them directly to get started

You can apply for a home loan right on their website, which is a plus compared to some lenders that require you to call a loan advisor or visit a branch.

They say the loan application takes roughly 20 minutes to complete.

If you’ve been referred by a specific loan officer, they have a directory on their website to select that individual prior to filling out the application.

Alternatively, you can select a “quick quote” that just requires you to enter your name, state, email address, and phone number. Then a loan officer will call you directly.

They also have a live chat feature on their website if you have questions before you apply. Or you can simply call them up.

In terms of digital mortgage capabilities, like those offered by Rocket Mortgage and Better Mortgage, they are light on details.

It’s unclear if you can link financial accounts with the touch of a button, or if you must upload documents instead during the loan process.

They say they close loans fast – in just over 30 days on average, which is close to the industry norm.

What Loan Options Does Lenox Financial/WesLend Offer?

Like most mortgage lenders, they offer both home purchase and mortgage refinance loans, along with reverse mortgages, and even purchase reverse mortgages.

They offer conventional home loans, including both conforming loans and jumbo loans, as well as government home loans, including the big three, FHA, USDA, and VA.

Their signature product is the no cost refinance, which isn’t proprietary to them or any other lender. It’s just an approach where lender fees (and sometimes third-party fees) are covered by a lender credit or rolled into the loan amount.

With regard to specific loan programs, you can get a fixed-rate mortgage with these terms:

  • 30-year fixed
  • 25-year fixed
  • 20-year fixed
  • 15-year fixed
  • 10-year fixed

And an adjustable-rate mortgage in the following terms:

Lenox Financial/WesLend Mortgage Rates

Unfortunately, they do not advertise their mortgage rates on their website. If you click on the mortgage rates link, it just takes you back to the homepage.

So in terms of transparency there, it’s not great. Of course, advertised rates don’t mean a whole lot since loan scenarios can vary considerably.

However, it’s tough to know how competitive they are without having a clue about their rates.

Additionally, they don’t disclose their lender fees, so again, no idea what they charge, such as loan processing, loan origination, etc.

It’s also unclear if they charge an upfront application fee, often known as a rate lock fee.

So you’ll probably want to get a solid quote before applying to see where they stand rate and fee-wise.

Lenox Financial/WesLend Mortgage Reviews

First off, they are an accredited company with the Better Business Bureau, since 2007. They currently have an A+ rating.

Their customer reviews on the BBB website only total five, but their star rating is just over 1. So not too good, but not a large sample size either.

Similarly, they have a 2.5 star rating out of 5 on Yelp, though only on 38 customer reviews.

On Google, they had 28 reviews at last glance, with an average customer rating of 3.6 stars.

WesLend isn’t found on Zillow, though parent company Lenox Financial is, albeit with only three reviews, all of which are 5-star ratings.

On Trustpilot, WesLend are rated a 4.5 out of 5 stars, which is considered excellent. It is based on 173 reviews, which isn’t a ton but is certainly more than the other sites mentioned and enough to get an idea of customer satisfaction.

Lenox Financial has a 3.8 out of 5 stars on Trustpilot based on 101 reviews, which is considered great.

So in all in all, they appear to be well-liked by their customers, though exceptions certainly apply, much like any other lender out there.

Pros and Cons of WesLend Mortgage

The Good

  • Lots of different loan programs available
  • They offer a no cost refinance option
  • Licensed in most states nationwide
  • Have some positive customer reviews
  • Can apply for a mortgage directly on the website
  • Free mortgage calculators on their website

The Potential Bad

  • Some questionable reviews from past customers
  • Not licensed in all states
  • No closing cost option not available in Washington
  • Do not disclose mortgage rates or lender fees on their website
  • Confusion with company operating under two different names

(photo: yonolatengo)

Source: thetruthaboutmortgage.com

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Embrace Home Loans Fast Facts

  • Founded in 1983 by Dennis Hardiman
  • Previously known as Advanced Financial Services Inc. before name change in 2009
  • Located in Middletown, Rhode Island
  • Fannie/Freddie, FHA, VA, and USDA-approved direct mortgage lender
  • Licensed in 49 states and the District of Columbia (not available in Hawaii)
  • Loan servicing portfolio exceeds $6 billion

I always like to read up on the history of specific mortgage lenders to see how they got their start.

And the Embrace Home Loans story is an interesting one, having started all the way back in 1983, which is a lifetime in the mortgage industry.

Originally known as Advanced Financial Services Inc., direct-to-consumer mortgage lender Embrace Home Loans began after founder Dennis Hardiman watched mortgage interest rates “fall a whopping 5 points.”

Back then, mortgage rates were nothing like they are today. In 1982, they were hovering around 17% for a 30-year fixed, and a year later had fallen to around 12%.

While neither of those rates sounds very appealing, Hardiman realized that no one refinanced their mortgages in those days.

Instead, homeowners took out a mortgage when they purchased a home, and either kept it until maturity or paid it off when they moved.

Fast forward to 2020 and most borrowers don’t keep their mortgage for more than a few years.

Oh, and the lenders that originate them don’t keep them for more than a month before they’re bundled into mortgage-backed securities on Wall Street.

So that’s how Embrace got its start – today they offer mortgage refinances and home purchase loans nearly nationwide, with roughly 700 employees and about 60 physical branches.

I tried to determine how large they are by digging into HMDA data, which put 2018 loan volume at roughly $2.3 billion.

But they also have a correspondent lending channel that launched in 2013, so it’s hard to say how much volume they do.

Anyway, let’s learn more about them.

Update: Embrace Home Loans recently partnered with Ameriprise Financial to provide its wealth management advisors and clients with mortgage financing solutions.

Applying for a Mortgage with Embrace Home Loans

  • You can apply for a mortgage directly on their website
  • Or use their loan officer directory to work with someone specific
  • They also offer the ability to get pre-qualifed via text message
  • Once approved you can track loan progress via the Embrace Home Loans Mobile App

One plus to Embrace Home Loans is the ability to apply for a mortgage directly on their website without having to speak to anyone.

However, you’re also able to call them directly or use their loan officer directory if you’ve been referred by someone specific. Or simply want to look up loan officers in your area.

You can also request a mortgage rate quote by filling out a shorter form on their website, in which case a loan officer will reach out to you.

One unique offering they have is the ability to get pre-qualified via text message.

Once you’re approved, you can use the customer portal to upload documents, e-sign disclosures, and connect your bank statements via Finicity.

You can also download the Embrace Home Loans Mobile App for free and track your loan progress without having to call or email your loan officer.

It sends real-time updates and helpful reminders, including upcoming events like your home appraisal and closing date.

So they do offer some digital mortgage attributes, similar to Rocket Mortgage.

What Types of Mortgages Does Embrace Home Loans Offer?

  • Home purchase, refinance, renovation
  • Conventional loans (Fannie/Freddie)
  • Government loans (FHA, USDA, VA)
  • Unconventional loans (self-employed and poor credit)
  • Jumbo loans
  • Higher LTV refinance
  • No down payment mortgages
  • Fixed-rate mortgages (30-year and 15-year fixed)
  • Adjustable-rate mortgages (5/1 and 7/1 ARMs)

Embrace offers just about every type of mortgage you can think of, including home purchase loans, refinance loans (cash-out and rate and term), and renovation loans.

You can get a conforming mortgage backed by Fannie Mae or Freddie Mac, along with a jumbo loan up to $3 million.

They offer all the main government home loan options, including FHA loans, USDA loans, and VA loans.

Additionally, you can get a renovation loan via the FHA 203k program.

Their so-called “unconventional loans,” which are known as “beyond by Embrace,” include some unique programs other lenders may not offer.

This includes mortgages for the self-employed (12-month bank statement program), jumbo loans with high LTVs, poor credit down to 580 FICOs, and financing on non-warrantable condos with a higher concentration of commercial units.

You can also get a no down payment mortgage (up to 101% CLTV) that features an interest-only piggyback second mortgage with no need for mortgage insurance.

And they offer a “higher LTV refinance,” which is the permanent replacement of the Home Affordable Refinance Program (HARP) offered by Fannie Mae and Freddie Mac.

Lastly, you can get a mortgage just one day after a settled Chapter 7 or 13 bankruptcy, assuming your credit score is at least 580.

They’ve basically got anything a borrower could wish for, so you shouldn’t be limited in any way with regard to loan program.

Embrace Approved to Move Pre-Approval

The company also offers a fully underwritten approval known as “Approved to Move” that can come in handy in a competitive housing market.

Instead of a mere pre-qualification, or run-of-the-mill pre-approval, your loan file is actually processed by a loan underwriter upfront.

Aside from providing you with the assurance that you’re approved for a mortgage, it gives the home seller peace of mind that you’re a serious and qualified buyer.

It’s good for a full 90 days and Embrace says “it’s virtually as good as a cash offer.”

Embrace Home Loans Mortgage Rates

While they don’t advertise their mortgage rates, you can find rate assumptions at the bottom of most pages on their website.

Their rates seem competitive, but they make a lot of strong assumptions, including a loan-to-value ratio of 70% or less. If your LTV is higher, expect a higher interest rate.

Additionally, they charge two discount points in their mortgage rate examples, meaning 2% of the loan amount comes via closing costs.

So be sure to consider the closing costs and take a look at the mortgage APR, not just the rate, when comparing their offer to other lenders.

Embrace Home Loans Reviews

The company seems to be very highly regarded, with solid reviews across a number of different platforms.

On SocialSurvey, they have a 4.9 rating out of 5 based on roughly 25,000 customer reviews.
Additionally, they have been named #1 large mortgage company in terms of customer satisfaction on SocialSurvey.

On Zillow, they have a 4.97 star rating out of 5 based on 2,500 customer reviews. Most customers seem to indicate that rate and fees are lowered than expected.

They are an accredited company with the Better Business Bureau (since 2009) with an A+ rating.

Embrace Home Loans Pros and Cons

The Good

  • Tons of loan programs (including no down payment and low credit score options)
  • Excellent customer reviews
  • ‘Approved to Move’ fully underwritten pre-approval
  • Ability to get pre-qualified via text message
  • Can apply directly on website
  • Free mortgage calculators on site
  • Free mobile app
  • Services its customers’ loans via a sub-servicer

The Potential Bad

  • Not licensed in Hawaii
  • Do not advertise their mortgage rates
  • Don’t disclose lender fees upfront on their website
  • Does not offer home equity products (such as HELOCs)

Source: thetruthaboutmortgage.com