mortgage pre-approval Archives

Apache is functioning normally

September 14, 2023 by Brett Tams

How fast is fast enough? Ask Guaranteed Rate, which just launched “5 Minute Approval” for mortgage applications.

This new “innovation” from the Chicago-based mortgage lender allows borrowers to get approved for a home loan in just five minutes.

Interestingly, it comes not long after their Same Day Mortgage, which apparently wasn’t quick enough for some.

It might also be a sign of the times, with mortgage application volume at its lowest levels since the 1990s.

As the name suggests, customers can get approved for a home loan in as little as five minutes and possibly close in just 10 days.

How Does This New 5 Minute Mortgage Approval Work?

Those who are in a really big rush to get a mortgage can now take advantage of Guaranteed Rate’s so-called 5 Minute Approval.

As noted, the company only just launched Same Day Mortgage back in March, but apparently they had their sights set on faster.

And faster is exactly what this is. How it works appears relatively simple.

You visit their website, access the secure portal, sign the initial application package, then upload any requested documents.

This can apparently be done without any human interaction as well, and is about three minutes faster than Rocket Mortgage’s 8-minute full approval launched back in 2015.

To date, Guaranteed Rate has “successfully approved” more than 100 loans within 5 minutes via their pilot program.

It’s unclear how much is needed from the borrower as they didn’t provide the details, but that obviously seems lightning fast.

Also not totally clear if this is a full loan approval or a more basic mortgage pre-approval.

Simply visiting a website and filling out a form can easily take five minutes, so my assumption is they aren’t asking for much here. It’s unclear if credit is pulled, but I’d guess at least a soft pull is required.

If document upload is needed, that would likely take several minutes to track down from other websites.

Perhaps they allow applicants to link bank accounts, pay stubs, and other key information to speed up this process.

Either way, only a cookie-cutter vanilla loan scenario is going to get a mortgage approval in as little as five minutes.

This means a W-2 borrower with good credit and nothing out of the ordinary. And perhaps really fast fingers and a fiber internet connection to make it through the application in record time.

Jokes aside, it’s available for both home purchases and mortgage refinances, assuming you’re the impatient type. Okay, I guess one more joke.

Guaranteed Rate President and CEO Victor Ciardelli notes that you can even be touring a house and generate the insanely fast approval while you’re walking around.

Is Speed Still Necessary in Today’s Cooler Housing Market?

While it feels like a distant memory, there used to be a waiting list to refinance a mortgage at certain banks.

And many loans took two months or longer to close, due to unprecedented demand related to record low mortgage rates.

Several years ago, just getting an underwriting decision could take a couple weeks.

Not so today, with mortgage application volume down to 1996 levels, per the latest report from the Mortgage Bankers Association (MBA).

But despite depressed levels of demand, there are still bidding wars and multiple offers on many home sales because inventory is also rock-bottom.

At last glance, months’ supply was hovering around three months, which is well below a healthy market at 4-5 months of supply or more.

So it’s not just low demand, it’s also a story of very limited supply.

Guaranteed Rate cited Zillow data that found 48% of homes for sale still receive three or more offers.

This means it can still pay to have a mortgage approval in-hand if and when you tour a property.

Of course, a same day approval vs. five minute approval might just be splitting hairs.

Perhaps more importantly, Guaranteed Rate says applicants can close on their home loan in as little as 10 days.

Getting to the finish line that quickly seems a lot more valuable than rushing through an approval at the start.

Read more: Guaranteed Rate’s OneDown Offers a 1% Mortgage and $1,000 Toward Lender Fees

(photo: Steve Austin)

Source: thetruthaboutmortgage.com

Apache is functioning normally

August 29, 2023 by Brett Tams

Buying a home is a big deal, both emotionally and financially. For many people, homeownership is still an essential part of the American dream. And, of course, it’s the biggest investment some will ever make. With the median price of a house hitting $428,700 in mid-2022 (ka-ching), it’s not a purchase to be made lightly.

If you’re buying a home for the first time, you may expect it to be the same as those quick, fun-and-done experiences portrayed on reality TV shows. In truth, however, it’s a process with a steep learning curve and many moving parts, from figuring out your home-shopping budget to satisfying your final mortgage contingencies. There can be minor hiccups as well as major missteps along the way.

That’s where this article comes in. It will educate you about the six most common first-time homebuyer mistakes and help you avoid them, including:

• Not knowing how much house you can afford

• Not shopping around for the best mortgage rate

• Waiving an inspection because you’ve found your dream house.

First-Time Homebuyer Mistakes to Avoid

You’ve new to this homebuying business, so it’s worthwhile to educate yourself a bit about a few of the key moves to make the process go smoothly. Here, we’ll highlight the steps required for first-time homebuyers and help you avoid some common mistakes when buying a house.

1. Not Getting Your Mortgage Paperwork Moving

Before you start browsing online listings or get your heart set on a certain neighborhood, it might be a good idea to contact a lender (or, better yet, lenders) to show sellers that you are loan-worthy. If you don’t get your mortgage pre-qualification or even a pre-approval started, you’re unlikely to impress sellers as a serious bidder worth their consideration. You might just look like a person who enjoys poking around open houses for design ideas.

Nip that in the bud as follows:

• Pre-qualification: You’ll provide basic information about your debt, income, assets, etc., and they will run a credit check and can give you an idea of how much you can borrow.

• They will also share information on different types of loans — such as fixed-rate vs. variable-rate and 30-year vs. 15-year term — so you can see what best suits your financial situation and goals.

Remember, though: Mortgage pre-qualification isn’t a commitment for the lender or buyer — it’s just a first step. If you appear to meet a lender’s standards, you could move on to the pre-approval stage.

• Pre-approval: This involves submitting additional income and asset documentation for a more in-depth review of your finances.

• Once the lender approves these aspects of your loan application, you’ll receive a conditional commitment for a designated loan amount — called a pre-approval letter — and have a better idea of what your loan terms will be.

• Mortgage pre-approval can help demonstrate to sellers that you’ve completed the first step in getting a mortgage because your credit, income, and assets have already been reviewed by an underwriter. This can smooth the bidding process and could give you an edge over others in a competitive situation with multiple offers.

2. Not Checking Out First-Time Homebuyer Programs

It’s wise to shop around for a few different mortgage quotes, but it can be a rookie mistake to overlook some great, government-sponsored programs that make homebuying more affordable. These include:

• insurance (PMI), along with lower closing costs and a low interest rate.

• FHA Loans : These mortgages are designed for those with low to moderate incomes. They typically offer low down-payment requirements, low interest rates, and the ability to get approval even if you have a fair credit score.

• USDA Loans : These provide affordable mortgages to those with a lower income who are planning on buying a home in a qualifying rural area.

• VA Loans : These mortgages help those on active military duty, veterans, and eligible surviving spouses become homeowners. If you can check one of those boxes, you may be eligible for a home loan with no down payment and no private mortgage.

3. Not Being Realistic About What You Can Afford

Once you know more about your mortgage pre-qualification, you can avoid the homebuying mistake of not knowing your home buying budget. The lender you choose will tell you the maximum amount you’re approved to borrow for a home, but you don’t have to use every penny of that money.

It’s important to keep other factors in mind as you determine the top price you’ll pay for your first home. If you don’t have your pricing guardrails in place, you could wind up overbidding and winding up with a too tight budget. Here, some ways set your sights realistically:

• Ask yourself if your projected mortgage payment will fit comfortably into your monthly budget. You may have to make some tradeoffs — less travel, shopping, or dining out — if your new payment is higher than your current rent or loan payment, which you can figure out with a mortgage calculator.

• Keep in mind that your mortgage probably isn’t the only new expense you’ll have to cover. If you’re buying a bigger place than your current rental, you will likely pay more for utilities. If the home has a lawn or pool, you might have to maintain them or pay someone else to do it. Or you may have a homeowner association (HOA) fee. Add those costs, gleaned from online sources and/or open houses, to your projected monthly budget (you can make a budget in Excel, use paper and pencil, or work with an app).

• You’ll also have to account for the cost of homeowner’s insurance and paying your property taxes. You can get some idea of what those costs will be by searching online. There are insurance calculators, and most home listings give you the annual property taxes.

By doing the math, you’ll make sure you are ready to keep up with the monthly flow of expenses without dipping into savings or taking on credit card debt.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

4. Digging Too Deep for a Down Payment

In their eagerness to become homeowners, many first-time buyers make the mistake of going overboard and directing every bit of money they have to the purchase.

If you have to drain your emergency savings to manage the down payment on a home, you might want to dial down the amount or wait and save up a bit more. Consider what could happen if the home needs a costly repair or, worse, if you or someone in your family suddenly has an expensive medical bill. That’s a good example of when to use an emergency fund.

The same thing holds for taking money from your retirement savings. The IRS allows first-time homebuyers (which the IRS defines as not owning a primary residence in the past two years) to withdraw money from an IRA penalty-free . But this is capped at $10,000, and you’ll still pay federal and state income taxes on the money — and lose out on the growth you’d possibly have if you left those funds alone.

If you have a 401(k), you could take a loan against those funds, but again, there are consequences. There may be a provision in your plan that prohibits you from making additional contributions until the loan balance is repaid, so you’ll miss out on any growth, and you may be required to pay back the loan immediately if you quit or lose your job. If that happens, the money you borrowed will become fully taxable and may be subject to a 10% early withdrawal penalty.

There are benefits to putting 20% down on a home: You’ll avoid paying private mortgage insurance (PMI) and your monthly payments will be lower. But 20% isn’t required. For example, the minimum down payment required for a conventional loan is 3%, and for an FHA loan, it’s 3.5%. According to the National Association of Realtors, first-time buyers typically put down 7% of a home’s price in 2021.

With all the other costs you could be looking at as you move into a home — closing costs, utility deposits, moving expenses, decorating, and more — your down payment amount is something to consider if you want to avoid getting in over your head.

5. Passing on a Full Inspection

It may be tempting to waive the home inspection when you’re trying to buy the home of your dreams — especially if you have some stiff competition to be the winning bidder for an in-demand property.

Sorry to say, this is a risky strategy. A home inspection might reveal critical information about the condition of a home and its systems, from electrical problems to hidden mold; from a failing septic system to a leaky roof. What you learn in an inspection could reveal that your dream home is actually a money pit.

What’s more, your inspection report might serve as a useful negotiating tool: You could use it to ask for repairs or to work out a better price from the seller. And if you really aren’t happy with the inspection results, you may be able to use it to cancel the offer to buy.

💡 Recommended: 7 Important Factors That Affect Property Value

6. Letting Your Emotions Get The Better of You

Homebuying can be a roller coaster, so it’s important to prepare yourself psychologically as well as financially. If you’ve ever talked to someone buying a house, you know there are potential pitfalls all through the purchasing process.

You might fall in love with the perfect house and find it’s way over your budget. You might get annoyed with the sellers or their Realtor, especially during the negotiation process. You might disagree with your spouse or a co-buyer about priorities.

All of these scenarios can cause a person to behave emotionally. It might make you want to walk away from a great deal. It might lead you to barrel ahead with a purchase, even when warning lights are flashing.

How to avoid such mistakes when buying a house? By recognizing that this will be a challenging and at times stressful process (especially because you are new to it), you can proceed more calmly. Find tools that help you move ahead with patience and a sense of calm, best as you can. With your eye on the prize — namely, your first home — you’ll get there.

💡 Recommended: 31 Ways to Save for a Home

The Takeaway

Buying a home for the first time is an exciting moment, but one that takes some time and care to make sure you avoid rookie mistakes. You’ll want to do due diligence, not skip steps, or get carried away by emotion.

When you’re ready to line up your financing, the loan terms you get could be nearly as significant as your home’s location in terms of long-term satisfaction.

When shopping for a mortgage, you may want to compare different interest rates, the length of the loan, and other factors that make one lender a better fit than another.

With a SoFi mortgage loan, for example, the pre-qualification process is super simple, and our loans have competitive rates. What’s more, qualifying first-time homebuyers can put down as little as 3%, and work with our Mortgage Loan Officers who can coach you through the required steps.

If you’re thinking about buying a home, see what a SoFi mortgage could do for you.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Source: sofi.com

Apache is functioning normally

July 21, 2023 by Brett Tams

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

July 19, 2023 by Brett Tams

If you haven’t heard of “Guaranteed Rate,” there’s a good chance you’ve never applied for a home loan before. Or maybe you just don’t live in the Midwest, where they’re headquartered.

Despite being from Chicago, they offer home loans to borrowers in all 50 states and Washington D.C., so they can be included in your mortgage search if and when it comes time to apply.

Their goal is to become the top retail mortgage lender in the country, which while ambitious, isn’t necessarily out of reach given their tremendous growth in such a short period of time.

The Relatively Short History of Guaranteed Rate

The retail mortgage lender was founded in the year 2000
Its headquarters are in Chicago, Illinois
They have roughly 4,000 employees and nearly 350 offices nationwide
One of the top-10 largest retail mortgage lenders in the country
Funded nearly $50 billion in home loans during 2020

While they’re a pretty big name in the mortgage world, they only got started back in the year 2000. That means they’re less than 20 years old, which is pretty short stint for a such a successful lender.

In 2020, they originated more than $48.8 billion in home loans, which should put them in or close to the top 10 in terms of total volume for all mortgage lenders.

Part of their growth can be attributed to acquisitions, including Manhattan Mortgage in 2012, and Sun State Home Loans, Nationwide Direct, Arbor Mortgage, and Firstrust Mortgage in 2014.

They also took over a call center and roughly 75 loan officers from Discover Home Loans after it went belly up in 2015.

Most recently, they acquired Stearns Lending, which funded roughly $7.6 billion in home loans themselves in 2019.

The move is a serious attempt to become the country’s #1 mortgage lender, though competition is certainly fierce as you near the top.

You might also recall that the company hired Ty Pennington of Extreme Makeover fame a while back to market the company.

A recent joint venture with Realogy’s real estate brokerage company NRT known as “Guaranteed Rate Affinity” has made them a major player in the home purchase financing market as well.

The lender also created another partnership with @properties known as “Proper Rate,” which will extend home loans to home buyers in select regions in the country, namely those represented by @properties’ 2,800 real estate agents.

And their latest JV is known as “OriginPoint,” an independent mortgage lender created with real estate brokerage Compass.

Guaranteed Rate boasts a very high customer satisfaction rating of 95% whom said they were “satisfied.”

Additionally, 94% said the company “made it easy for them to obtain a loan,” and 95% said they’d use the company again in the future.

This is similar to PrimeLending, which also touts one of the highest customer satisfaction ratings in the country for mortgage lending.

Getting a Mortgage with Guaranteed Rate

They have a fleet of mortgage loan officers you can search by name
And a few hundred branches in cities throughout the country
You can also apply online or via their smartphone app without assistance
And the home loan process is close to or fully digital in some cases

The company is a consumer-direct retail mortgage lender with what they call an “Intuitive Loan Finder.”

In my experience, it’s basically a lead form that gives you loan options after you answer the typical borrower and property-related questions.

They have since renamed it “GRafforable” in what appears to be an effort to show off their silly side.

They say the GRaffordable loan finder tool is the best mortgage calculator out there, which allows borrowers to gain access to real-time mortgage rates in seconds.

I gave it a whirl and it did indeed take just seconds to generate loan options including a “best match” based on my inputs.

The only drawback was that it didn’t list interest rates for all products displayed.

The good news is you don’t have to provide any contact information to get a bunch of real mortgage quotes in just seconds.

If you like what you see, you can apply for a loan or connect with a loan officer.

The company says it created a “Mortgage Pod” model that surrounds their LOs with a team of “highly-trained specialists” to ensure you’re in good hands.

They also have a “Loan Expert” search feature on their website if you know who you want to work with already.

Or you can simply contact a local branch near you if you want assistance from someone in your area.

Those who prefer to do things without much human interaction can just begin the process online and stay there the entire time if desired.

The company claims to have the “World’s First Digital Mortgage” with proprietary tools like their Transfersafe secure document transfer to streamline the process and eliminate paper waste.

They also say you can get an automated approval from Fannie Mae or Freddie Mac within minutes, likely a mortgage pre-approval, and you can apply for a mortgage using their mobile app.

Their “Red Arrow Approval Express” brings back same-day underwriting with “real approvals” generated in as little as four hours that are probably more robust than their automated pre-approvals.

And their “Appraisal Express” option delivers a home value within 48 hours of the appraiser’s visit to your property to cut down the lengthy loan process.

So it’s clear they’re big on technology and speed, similar to other major players like Quicken’s Rocket Mortgage and newcomers like SoFi.

Guaranteed Rate FlashClose

In light of the coronavirus pandemic, Guaranteed Rate wants you to know that they’ve got a contact-free digital mortgage experience from start to finish.

This includes options that limit or completely eliminate the time an appraiser needs to spend in your home or soon-to-be home.

The finishing piece is known as “FlashClose,” a technology powered by Notarize that allows borrowers to sign most of their closing documents either online or even from their smartphone or tablet.

This may also alleviate some of the stress of signing a bunch of loan documents in one sitting while a notary waits, giving you more time to review and ask questions.

Aside from allowing you to safely social distance, you also get an efficient, simple and secure experience from application to closing.

What Loan Options Does Guaranteed Rate Offer?

Home purchase, refinance, construction, and renovation loans
Conventional, government, jumbo, and non-QM loans
Fixed-rate mortgages and ARMs with various loan terms
Interest-only mortgages
Rate buydowns and long lock periods

They have a variety of different loan products available, including home purchase loans, construction loans, renovation loans, rate and term refinances, and cash out refis.

You can get a conventional loan backed by Fannie or Freddie, or a government loan backed by the FHA, USDA, or VA.

They participate in HUD’s Good Neighbor Next Door program, which allows law enforcement, teachers, firefighters, and EMTs to get mortgages with as little as $100 down payment.

Speaking of low down payments, they also offer a 1% down mortgage program, which combines the 97% LTV program with Fannie/Freddie and a 2% grant.

In the home improvement channel, you can get an FHA 203k loan or a Fannie Mae HomeStyle renovation loan to renovate and finance your property in one convenient loan.

Additionally, they have both conforming and jumbo loan amounts available to their customers in more expensive regions of the country, along with both fixed-rate loans and ARMs.

In terms of available programs, you can get a 30-year fixed, 20-year fixed, or 15-year fixed.

In the adjustable-rate category, they’ve got a 5/1 ARM, 7/1 ARM, and 10/1 ARM. They’ve also got interest-only options for those who believe their money is better spent elsewhere.

The Guaranteed Rate 2-1 Buydown

Guaranteed Rate also offers a 2-1 buydown, which offers a rate 2% below the note rate in year one, and 1% below the note rate in year two before returning to the actual rate offered.

For example, if you qualified for a rate of 5% on a 30-year fixed, you’d get a rate of 3% the first year, 4% the second year, and 5% for the remaining term.

When it comes to locking in your rate, they offer a “Lock n’ Roll” option that allows you to renegotiate your rate if interest rates go down.

Lock terms are also pretty lengthy, with 55-, 70-, and 85-day options available.

For those doing construction, they offer the “Lock n’ Build” option with lock periods as long as nine months, or 270 days.

I don’t believe they offer second mortgages or home equity loans/lines, which would be the only major product category missing here.

Guaranteed Rate Mortgage Rates

You can find their daily mortgage rates right on their homepage
They don’t appear to be noticeably higher/lower than most other major lenders
Check the loan assumptions to see what’s required for the advertised rates
And take the time to shop around if price is your number one concern

One thing I like about Guaranteed Rate is the fact that they advertise their mortgage interest rates right on their homepage.

This means there’s no guessing as to where they stand pricing wise. Of course, advertised rates always contain lots of assumptions, such as a specific credit score, loan-to-value ratio, and so on.

For example, their rates require a 25% down payment, as opposed to the typical 20% you often see advertised, a 740+ FICO score, and the property must be a one-unit primary residence.

In other words, you may not actually qualify for the rate seen on their website, though it should at least give you an idea if you compare their advertised rates to those of other lenders.

I felt their rates were in line with what other major lenders advertise – not necessarily cheaper or more expensive.

Guaranteed Rate Reviews

They have a 4.96 star rating out of 5 on Zillow, which is as close to perfect as you can get.

It’s based on more than 10,000 customer reviews, so the company has certainly been heavily vetted by those who have used them.

A good chunk of the reviews indicated that both the interest rate and closing costs were lower than expected, a good sign if you’re looking for the best deal.

You’d think with a name like Guaranteed Rate that the mortgage rate would be good, right?

At last glance, their Better Business Bureau (BBB) profile was rated ‘A’, with about 40 customer complaints over the past 12 months.

They are an accredited business with the BBB since 2009.

Those looking to dig even deeper should consider searching for individual loan officer reviews online.

Many if not all of their employees have reviews that can be easily found, and with such a large company, it may be a better indicator than overall ratings.

Why Choose Guaranteed Rate for Your Mortgage Needs?

They claim to offer the World’s First Digital Mortgage
And offer a lot of tools to close your loan quickly and easily thanks to tech investments
They’ve won a lot of best lender awards
Have high levels of customer satisfaction that beat most others in the industry

They claim to be a technology leader in the mortgage space with the “World’s First Digital Mortgage,” so if speed and convenience is your thing, they might be a good choice.

The same-day underwriting and 48-hour appraisal turnaround time can certainly make a traditionally slow and painful home loan process a lot faster.

They’ve also been able to cut the closing appointment down to around 10 minutes thanks to electronic signing.

And being able to do most, if not everything, from a computer or smartphone should ease the burden of obtaining a mortgage.

There are plenty of loan options to suit most borrowers’ needs, and their customer satisfaction numbers are some of the best in the industry.

They were recently named in the Best Mortgage Lenders of 2018 list by U.S. News and World Report and received the 2018 FinTech Breakthrough Award for the Best Online Mortgage Lender.

They could be a good choice for a home purchase seeing that they’re partnered up with Realogy and likely trusted by lots of real estate agents nationwide to close your loan on time without any hiccups.

The company also offers insurance, including homeowners insurance, auto insurance, and life insurance via one of their subsidiaries. So they might be a one-stop shop for all your homeownership needs.

Guaranteed Rate is also committed to being transparent and promise low rates and fees, which after all, is kind of in their company name.

Of course, they might not offer the lowest mortgage rates around, so shopping is always recommended.

Guaranteed Rate Pros

Appear to have competitive mortgage rates
Offer a fully-digital mortgage experience (contact-free)
Can apply online, in-branch, via smartphone, etc.
Lots of different loan programs to choose from
Excellent reviews from past customers
‘A’ BBB rating, accredited business
They have a free smartphone app
Offer entire mortgage experience in Spanish

Guaranteed Rate Cons

They charge a $1,290 lender fee
May require higher minimum credit scores than other lenders
Don’t appear to offer second mortgages or home equity lines of credit (HELOCs)
Will likely transfer your mortgage to a third-party loan servicing company

Source: thetruthaboutmortgage.com

Apache is functioning normally

July 13, 2023 by Brett Tams

In this comprehensive guide, by Redfin, we will delve into ten common questions about mortgages, offering valuable insights and expert answers. Whether you’re a first-time homebuyer in Los Angeles or you’re considering refinancing your home in Tampa, this guide is tailored to equip you with the knowledge and understanding necessary to navigate the mortgage process effectively.

1. What is a mortgage?

A mortgage is a loan specifically designed for purchasing a property, commonly a home. It acts as a financial agreement between the borrower and the lender, where the property serves as collateral. In the event that the borrower fails to repay the loan, the lender has the right to take possession of the property through a legal process known as foreclosure.

Essentially, a mortgage enables individuals to become homeowners by providing the necessary funds upfront, with the property serving as security for the loan.

2. How does a mortgage work?

When you take out a mortgage, the lender provides you with a specific amount of money to buy a home. You then make monthly payments, including principal and interest, over an agreed-upon term (usually 15 to 30 years) until the loan is fully repaid. The interest rate and term length determine the amount of your monthly payments.

3. What are the different types of mortgages?

When considering mortgage options, it’s important to understand the different types available. A fixed-rate mortgage provides stability and predictability, with a consistent interest rate throughout the loan term. On the other hand, an adjustable-rate mortgage (ARM) offers flexibility and potential initial payment advantages as the interest rate adjusts after an initial fixed period.

Government-backed loans, such as FHA or VA loans, provide more flexible qualification criteria and specific benefits. Additionally, prospective first-time homebuyers can benefit from exploring specific programs available to them, such as first-time homebuyer programs, which offer unique benefits and support. Consulting with a mortgage professional can help you choose the best mortgage type to suit your financial goals.

4. How is a mortgage rate determined?

Mortgage rates are influenced by various factors, such as the borrower’s credit score, loan-to-value ratio, loan term, and prevailing market conditions. Lenders consider the borrower’s creditworthiness and the level of risk associated with the loan. Additionally, the loan-to-value ratio and loan term can impact the interest rate offered.

Lenders also take into account economic indicators, including inflation, employment rates, and the overall state of the economy, when setting mortgage rates.

5. What is a down payment, and how does it affect a mortgage?

A down payment is an upfront payment made by the borrower when purchasing a home. It is typically a percentage of the home’s purchase price. The down payment reduces the loan amount and can impact the interest rate, monthly payments, and whether you need to pay for private mortgage insurance (PMI).

6. What is PMI, and when is it required?

PMI, or private mortgage insurance, is a type of insurance that protects the lender if the borrower defaults on the loan. It is generally required when the down payment is less than 20% of the home’s value. Once the borrower’s equity reaches 20%, PMI can be canceled.

7. What documents are typically required for a mortgage application?

Mortgage lenders typically require various documents to evaluate your financial situation and determine your eligibility. These may include proof of income, bank statements, employment verification, credit history, and debt information. These documents provide lenders with a comprehensive understanding of your financial profile for the mortgage application process.

“Technological advancements have greatly simplified the document submission process for borrowers in the mortgage industry,” shares Ron Haddad Lending Team. “With improved digital systems and online platforms, it is now easier than ever for prospective buyers to organize and submit their necessary paperwork. This streamlining of document submission contributes to a smoother and more efficient mortgage application process, providing borrowers with convenience and reducing the paperwork burden.”

8. How does the mortgage pre-approval process work?

Mortgage pre-approval is a crucial step in the homebuying process. By submitting a mortgage application, the lender assesses your financial information to determine the loan amount you qualify for. Pre-approval provides a clear understanding of your budget and helps you focus your search on affordable homes. It also strengthens your position as a serious buyer and expedites the loan process once you find your dream home.

9. What are closing costs?

Closing costs are fees and expenses associated with finalizing a mortgage loan. They can include appraisal fees, title insurance, attorney fees, loan origination fees, and prepaid expenses such as property taxes and homeowners insurance. It’s essential to budget for these costs when planning to purchase a home.

10. How can borrowers improve their chances of getting a mortgage?

To improve your chances of getting approved for a mortgage, there are a few key considerations. Maintaining a good credit score, saving for a down payment, keeping your debt-to-income ratio in check, and avoiding major financial changes during the loan process are crucial steps to take. These factors demonstrate financial responsibility and stability to lenders, increasing the likelihood of mortgage approval. Remember to consult with a mortgage professional for personalized guidance based on your specific situation.

“Once you determine you want to buy a home, start learning the basics of your credit profile.” Mortgage loan consultant Luis Machain says, “have the ability to show the lender that you can pay the mortgage back by demonstrating steady employment. It’s important to meet with a mortgage professional who can advise you on the available loan programs and down payment options.”

Source: redfin.com

Apache is functioning normally

July 8, 2023 by Brett Tams

Just five years young, Home Point Financial has already seen record growth thanks to production across three different lending channels.

Aside from being a retail consumer-direct lender, they are reportedly the second largest wholesale mortgage lender in the U.S. thanks to year-over-year growth exceeding 400%, and also the 13th largest correspondent lender in the nation.

Home Point recently revealed that its loan origination volume has “nearly doubled each calendar year since the company’s launch,” with more than $50 billion in total volume expected for 2020.

As a result, they plan to hire an additional 600 associates to manage the growth before the end of the year.

Home Point Financial Fast Facts

Got started through the acquisition of Maverick Funding in 2015
A top-20 nonbank mortgage lender operating via retail, wholesale, and correspondent channels
2nd largest wholesale lender and 13th largest correspondent lender in the U.S.
Company headquartered in Ann Arbor, Michigan
Has nearly 2000 employees but no brick-and-mortar retail locations
Services loans for roughly 265,000 of its customers

While Home Point Financial doesn’t have a long history, they’ve certainly made a name for themselves in a very short period of time.

In 2014, president and CEO William “Willie” Newman joined forces with Stone Point Capital to create Home Point Capital.

Then Home Point Financial (HPF) was born through the 2015 acquisition of Maverick Funding.

Two years later, the company acquired publicly-traded Stonegate Mortgage Corporation in an effort to quickly build a leader in the mortgage space.

They are now a top-20 nonbank originator and loan servicer, and a prominent warehouse lender thanks to their wholly-owned subsidiary NattyMac.

My assumption is their goal is to become a top-10 mortgage lender sooner rather than later, using their growth in the retail, wholesale, and correspondent channels.

Most recently, they rebranded as “Homepoint” and filed an IPO, for which their common stock will be traded on the NASDAQ Global Select Market under the ticker symbol “HMPT.”

In early April 2023, Homepoint sold its wholesale lending division to The Loan Store, Inc. As a result, it will exit the loan origination business but retain its mortgage servicing rights.

How to Apply with Home Point Financial

You can request a quote by filling out a short form on their website
Or simply click the “apply now” button to get started on your own
You can still call them up directly, have them call you, or chat online instantly
Or schedule an appointment at a time of your choosing to speak with a home loan expert

In terms of applying for a home loan, you can call them directly or have them call you. It’s also possible to request a quote on their website by filling out a short form.

Those who are more confident in the mortgage department can simply hit the “apply now” button on their website and get the ball rolling themselves.

They don’t have brick-and-mortar retail locations at the moment, so you’ll be going through the loan process remotely, which I suppose is a good thing these days.

The online digital mortgage application is powered by fintech company Blend, like many other lenders out there. So you’ll be able to link financial accounts and upload key documents along the way.

If you’re thinking about buying a home, you can take advantage of their proprietary upfront-underwritten mortgage pre-approval known as REALQual.

Before you find a property, their dedicated underwriting team will conduct a comprehensive review of your income, assets, employment, and credit to determine eligibility and maximum purchase price.

Home Point also operates a major wholesale lending division, so it’s possible to get a mortgage from them if you work with a mortgage broker.

Smaller banks and credit unions may also resell Home Point loan products via the correspondent lending channel.

What Types of Loans Does Home Point Financial Offer?

Conventional loans and government loans (FHA, USDA, VA)
Jumbo loans and High Balance loans
Renovation loans (FHA 203k and Fannie Mae HomeStyle)
Non-agency mortgages (bank statement program and asset utilization)
Piggyback second mortgages

Home Point Financial offers tons of loan options to its customers, including home purchase loans, refinance loans, renovation loans, home equity loans, and second mortgages.

You can go the conventional loan route or the government loan route, with FHA loans, USDA loans, and VA loans all available.

Those who need a larger mortgage can take advantage of the company’s High Balance loans or jumbo loans, with loan amounts as high as $2.5 million with just a 661 minimum FICO score required.

It’s also possible to get a mortgage above 80% loan-to-value (LTV) without mortgage insurance.

If you own a fixer-upper or have your eyes on one, you can get a renovation loan such as the FHA 203k backed by the FHA or a Fannie Mae HomeStyle loan.

They also offer a piggyback home equity lines of credit (HELOC) via TCF Bank, as long as the first mortgage is closed in conjunction with Home Point Financial.

Home Point Financial Mortgage Rates

Sadly, the company does not advertise its mortgage rates online or elsewhere to my knowledge.

So it’s impossible to know how competitive they are without first receiving a quote and then comparing it to other mortgage lenders.

Additionally, they do not make mention of lender fees, another important factor to consider when mortgage rate shopping.

As such, you’ll need to collect multiple quotes from other lenders to see how they stack up both mortgage rate- and pricing-wise.

If you don’t, you could be leaving money on the table, as evidenced by studies that prove multiple mortgage quotes leads to money saved.

Home Point Financial Reviews

The company has excellent customer reviews on Zillow, with 4.91 out of 5 stars based on roughly 2,200 reviews.

I perused through many of those reviews and found that some customers indicated that the mortgage rate was higher than expected, while others said the fees/closing costs were higher than expected.

Still, many of these customers still rated Home Point Financial highly, so I suppose the customer service did it for them regardless of cost.

Home Point Financial is a legit company with an A- rating with the Better Business Bureau, though they aren’t accredited.

Their goal is to put the customer first and keep them for life, which explains why they strive to service the loans they originate.

You may just want to keep a close eye on mortgage rates and lender fees to ensure you receive a competitive mortgage relative to other lenders.

Home Point Financial Pros and Cons

The Good

Licensed to do business nationwide
Can apply for a home loan on their website
Offers a digital mortgage experience via Blend
REALQual pre-approval program for home buyers
Services more than 99% of the loans it originates
Free mortgage calculators and how-to guides available on their website

What to Watch Out For

Do not disclose lender fees upfront
Cannot see daily mortgage rates on their website
Some customer reviews indicate higher rates and fees than expected

Source: thetruthaboutmortgage.com

Apache is functioning normally

July 8, 2023 by Brett Tams

Just five years young, Home Point Financial has already seen record growth thanks to production across three different lending channels.

Aside from being a retail consumer-direct lender, they are reportedly the second largest wholesale mortgage lender in the U.S. thanks to year-over-year growth exceeding 400%, and also the 13th largest correspondent lender in the nation.

Home Point recently revealed that its loan origination volume has “nearly doubled each calendar year since the company’s launch,” with more than $50 billion in total volume expected for 2020.

As a result, they plan to hire an additional 600 associates to manage the growth before the end of the year.

Home Point Financial Fast Facts

Got started through the acquisition of Maverick Funding in 2015
A top-20 nonbank mortgage lender operating via retail, wholesale, and correspondent channels
2nd largest wholesale lender and 13th largest correspondent lender in the U.S.
Company headquartered in Ann Arbor, Michigan
Has nearly 2000 employees but no brick-and-mortar retail locations
Services loans for roughly 265,000 of its customers