zillow group
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In the spring of 2019, “Zillow Home Loans” was launched by its parent company Zillow.
You probably know them best for their popular Zestimates, which are quick and dirty home value estimates.
Given their strong engagement with prospective home buyers and existing homeowners, they eventually decided to launch their own mortgage division.
The goal was to become “more of an end-to-end provider for housing-related services” like the many other companies out there trying to do it all.
For you as the customer, it’s yet another mortgage lender to consider when seeking financing. Read on to learn more about them.
Zillow Home Loans Fast Facts
- Direct-to-consumer mortgage lender
- Offers home purchase and refinance loans
- Founded in 2019, headquartered in Overland Park, Kansas
- Parent company is publicly-traded Zillow Group
- Licensed to do business in 49 states and the District of Columbia
- Funded about $1.5 billion in home loans last year
- Most active in California, Florida, Georgia, and Texas
Zillow Home Loans, LLC is a subsidiary of Zillow Group (NYSE:Z).
The company was officially launched in April 2019 after acquiring Mortgage Lenders of America in the fourth quarter of 2018.
This gave them a quick in to the mortgage business, instead of having to start from the ground up.
They continue to operate out of Mortgage Lenders of America’s former headquarters in Overland Park, Kansas. And also have offices in Irvine, CA and Seattle, WA.
Mortgage Lenders of America was founded in the year 2000 and had approximately 300 employees when Zillow bought them out.
It’s unclear how many remain and what the company’s workforce looks like now. But per the NMLS, they have about 230 licensed mortgage loan originators (MLOs) on staff today.
The original plan was to streamline the home buying process for consumers who used their iBuying service known as Zillow Offers.
But that division was shuttered in November 2021 because they couldn’t accurately forecast future home prices.
They also operated a title insurance and settlement division called Zillow Closing Services, which was also shut down.
Despite this, they pivoted into a full-service mortgage lender that now offers both home purchase loans and refinances to consumers in 49 states and D.C. They are not licensed in New York state.
Last year, Zillow Home Loans funded roughly $1.5 billion in home loans, with a near-50/50 split between purchases and mortgage refinances.
They are most active in the state of California, along with Florida, Georgia, Texas, and Washington.
How to Apply with Zillow
To get started, you can visit their website and click on “Purchase a home” or “Refinance my home.”
The online forms appear to be a sales funnel that require your contact information at the end, so calling might be faster.
To skip the form, you can call the phone number listed to speak with one of their loan officers one-on-on.
Assuming you like what you hear and are ready to proceed, they say a pre-qual takes as little as 3 minutes online and won’t impact your credit score.
What’s nice is if you have an existing Zillow account, you don’t need to sign up a second time.
You can also generate a verified pre-approval letter if you complete a hard credit check and submit supporting documents.
Like many other lenders, they offer a digital mortgage application that allows you complete much of the process electronically.
This includes the application itself, linking bank accounts, uploading documents securely, and eSigning disclosures.
At the same time, they have a human lending team consisting of loan officers and loan processors that can guide you throughout the process.
Once your loan is submitted, you can visit the Dashboard to check on loan status, satisfying outstanding conditions, or message your loan officer 24/7.
Loan Programs Offered
- Home purchase loans
- Refinance loans: Rate and term, cash out, streamline
- Conforming loans backed by Fannie/Freddie
- FHA loans
- VA loans
- Jumbo loans
- 1% down mortgages
- Fixed-rate and adjustable-rate options available
Zillow Home Loans offers a wide range of loan options to satisfy most home buyers and existing homeowners.
This includes both purchase loans and refinance loans, including rate and term refis, cash out refis, and streamline refis.
You can get a conforming loan backed by Fannie Mae or Freddie Mac, or a jumbo loan that exceeds the conforming loan limits.
They offer both FHA loans and VA loans, but not offer USDA loans at this time.
However, you can get a 1% down mortgage in select areas, where they provide a grant for 2% of the purchase price.
Both fixed-rate and adjustable-rate options are available, including the popular 30-year fixed, 20-year fixed, 15-year fixed, and 7/6 ARM.
Zillow Home Loans provides financing on single family homes, townhomes, and condominiums, including vacation homes and investment properties.
They do not lend on mobile or manufactured homes, investment property condominiums, construction/land, or co-ops.
Zillow Home Loans Rates and Fees
Unfortunately, Zillow Home Loans does not list their daily mortgage rates online, nor do they have a list of lender fees readily available.
As a result, it’s unclear how competitive they are compared to other banks, lenders, credit unions, mortgage brokers, and so on.
When you do speak with a loan officer, be sure to inquire about both the interest rate and any lender fees charged, such as an application fee or loan origination fee.
While you won’t see rates on their website, you might see them if you compare rates on the Zillow Mortgage Marketplace, which also includes third-party lenders.
Either way, be sure to gather quotes from multiple lenders to ensure you don’t miss out on a better offer.
If you have other mortgage rate quotes in hand, you might also be able to better negotiate with Zillow.
My guess is their pricing is competitive with other online lenders, and perhaps cheaper than brick-and-mortar banks. But don’t make assumptions, get quotes.
Zillow Home Loans Reviews
On the Zillow website (yes, their parent company), they have a 4.82/5-star rating from about 8,000 customer reviews. That is an excellent score, especially given the very large sample size.
You can browse the many reviews there to see what past customers thought of the interest rates and closing costs. And whether they closed on time if it was a home purchase loan.
Over at LendingTree, they’ve got another solid 4.5/5 rating from more than 950 reviews, along with a 94% recommended score.
At Bankrate, they have a 4.8-star rating from nearly 100 reviews, and a 3.8/5 on Consumer Affairs from about 120 reviews.
They’ve got a better 4.8/5 rating on BestCompany and a lower 3.7/5 over at Trustpilot.
In addition, they have a 3.6/5 rating at their Overland Park headquarters from 117 Google reviews. So there is no shortage of reviews to read.
The company also has an ‘A+’ rating on the Better Business Bureau (BBB) website and a 3.53/5-star rating from about 32 customer reviews.
To sum things up, Zillow Home Loans offers the latest technology, has thousands of excellent reviews, and might even be able to get you to the closing table faster than other lenders.
They noted that the average lender took 43 days to close a home purchase loan between March 2023 – May 2023, per an ICE Mortgage Technology survey.
Meanwhile, their average closing time was just 31 days, 12 days or 28% faster than the industry average.
They also say they offer best-in-class service and total transparency, along with local market expertise.
The only question mark is pricing, as they don’t publicize their rates or fees. But if you find them to be competitive relative to other options, they could be a worthy consideration.
Zillow Home Loans Pros and Cons
The Good
- Can apply for a home loan online
- Offer a digital mortgage application
- Close loans 12 days faster than the average lender
- Lots of loan programs to choose from including 1% down option
- Thousands of excellent customer reviews
- A+ BBB rating
- Free mortgage calculators and online guides
The Maybe Not
- No branch locations
- Do not offer USDA loans
- Not licensed in the state of New York
- Do not list rates or fees online
Source: thetruthaboutmortgage.com
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In addition to discussing Zillow’s financial results and the continual evolution of its Housing Super App vision on its third quarter earnings call, CEO Rich Barton and Zillow executives took time to address the elephant in the room: the verdict of the Sitzer/Burnett commission lawsuit.
While the industry has yet to find out what Judge Stephen Bough’s injunction will say and the three defendants, the National Association of Realtors, Keller Williams and HomeServices of America, have vowed to appeal the decision, Barton believes his firm will thrive regardless the outcome.
In his remarks about the suit, Barton said Zillow is a strong supporter of free, fair and transparent access to real estate information, independent representation, and transparent and negotiable agent commissions.
“From where we stand it seems clear that these principles are in the best interest of mover consumers, agents and the industry as a whole,” Barton said. “We expect industry changes resulting from this lawsuit or ones like it will involve commission transparency and negotiability provisions similar to those seen in several of the settlement the plaintiffs entered into with other real estate franchisors in advance of the trial.”
Barton also told listeners that Zillow believes complete disruption to the existence of buyer’s agents is improbable, as the firm believes it is important for buyers to have someone looking after their interests in the homebuyer transaction. However, if buyer’s agency does disappear, Zillow is considering models where the U.S. market transitions to one where one or two large listing portals offer pay-to-play inclusion on a digital listings marketplace.
“In this scenario, Zillow would be an odds on favorite to become the leading digital listings marketplace, given our brand, traffic, engagement and our unique focus on solving movers real pain points,” Barton said.
Despite what Barton believes would be an advantage for his firm, he said Zillow is not advocating for this to happen.
“We believe the pay-to-play marketplace is a step backwards for consumers and the industry as a whole and we very much like our position and growth plan in a market structure the continually evolves towards our principles of access, independence and transparency,” he said.
Zillow’s financial results
Despite a slower residential housing market environment caused by rising mortgage rates and low housing inventory, Zillow Group still managed to record an annual increase in revenue in the third quarter of 2023.
The real estate behemoth recorded $496 million in revenue, an increase of 3% year over year. The firm’s residential sector was responsible for $392 million of the overall revenue. The sector’s revenue for the quarter was down 3% annually, which Zillow executives were pleased with given the macro environment.
Zillow was also pleased with the performance of its mortgage sector, Zillow Home Loans, which reported an 88% year-over-year increase in purchase loan origination volume for the quarter. Even with this massive increase, Zillow Home Loans still recorded an 8% annual decline in mortgage revenue to just $24 million.
The firm’s mixed bag of revenue results garnered Zillow a net loss of $28 million for the quarter, which represents an improvement over the $53 million net loss it reported in Q3 2022.
“Today we are focused on delivering the Housing Super App, a tech enabled end-to-end platform with products and services that make it easier for people to move,” Barton told investors and analysts listening to the firm’s Q3 2023 earnings call Wednesday evening. “You’ve heard me say many times that 2023 is crucial for Zillow. It’s a year of execution as we prepare to scale in 2024 and 2025. We are very pleased with what we’ve accomplished today.”
While much of the call was given over to discussion of the Sitzer/Burnett suit, to which Zillow is not a party, none of the call featured discussions of the REX Real Estate false advertising lawsuit, in which Zillow, the only defendant, emerged triumphantly less than a month ago.
Originally filed by REX in March 2021, against Zillow and NAR, the lawsuit alleged that changes made to Zillow’s website “unfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.”
Despite the verdict, it does not appear that Zillow’s legal battle with REX is over. On Tuesday, the now defunct discount brokerage, filed a motion seeking a new trial.
In the motion, REX claimed that during the initial trial the court “gave an improper and case dispositive affirmative defense instruction on REX’s claim under the Washington Consumer Protection Act.”
REX claims that this enabled Zillow to “improperly escape liability for knowingly creating a deceptive and unfair web site by simply convincing the jury that it benefitted from doing so.”
Source: housingwire.com
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Zillow app also receives updates, which include improved navigation on for-sale listings and a way to simplify financing with the new Zillow Home Loans tab
SEATTLE, Oct. 23, 2023 /PRNewswire/ — Today Zillow® is launching a big update to the look and feel of for-sale property listings on its website, improving home shoppers’ experience with a more intuitive and simplified layout.
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The enhanced design of for-sale property listings on Zillow.com offers a wider, single-scroll format, making it easier for home shoppers to find key information, such as square footage, the Zestimate® feature, lot size and home type. The new layout also introduces a media section at the top of the page that better showcases photos and 3D tours. By clicking on a photo, the media section expands, providing a full-page, magazine-style layout for seamless navigation through the rest of the home’s photography.
“The new design delivers a fun and efficient way to browse homes on the Zillow website, making it easier for home shoppers to navigate and process information,” said Jenny Arden, chief design officer at Zillow. “We introduced a wider layout for images, larger fonts for the most important facts and a clearer articulation of what makes the home special to help our users quickly understand if the home is right for them.”
Zillow’s app updates: Navigate with ease and simplify financing with the Home Loans tab
In addition to the redesign on the Zillow website, for-sale property listings on the Zillow app (iOS) are also receiving an update. This new look minimizes excessive scrolling by allowing users to more easily find the information that matters the most to them, whether that’s home facts and features, a cost calculator or the Zestimate history.
When viewing a for-sale listing on the app, users will see a new look that presents the home details categorized into sections such as “What’s Special,”‘ “Market Value,” “Monthly Cost” and “Neighborhood.” Users can click into particular sections of interest to find more details. This new look will be available before the end of the year on the Zillow iOS app.
Zillow is also introducing a new “Home Loans” tab on the Zillow app to help shoppers become buyers. Users can now easily figure out their budget, connect with a lender, get prequalified with Zillow Home Loans℠, and track their loan status — all in one place.
“Financing is a critical part of the home-buying process, and 60% of buyers say setting their budget is their first step when buying a home. With this update, we’re helping the millions of people browsing the Zillow app better understand what they can afford within their budget and see a clear path toward getting the mortgage they need,” said Matt Daimler, senior vice president of product at Zillow. “We’re already seeing an impact: Customers are saying it’s easier than ever to access and use our financing tools and get prequalified with Zillow Home Loans.”
About Zillow Group:
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, great partners, and easier buying, selling, financing and renting experiences.
Zillow Group’s affiliates, subsidiaries and brands include Zillow®; Zillow Premier Agent®; Zillow Home Loans℠; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+℠, which includes ShowingTime®, Bridge Interactive®, and dotloop®.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.
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SOURCE Zillow
Source: prnewswire.com
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This program can reduce the time needed to save for a down payment and provide another option for those who are otherwise ready to take on a mortgage payment
SEATTLE, Aug. 24, 2023 /PRNewswire/ — Zillow Home Loans announced its 1% Down Payment program to allow eligible home buyers to pay as little as 1% down on their next home purchase. This program is initially being offered on properties located in Arizona, with plans to expand to additional markets. With the 1% Down Payment program, borrowers who qualify can now save just 1% to cover their portion of the down payment and Zillow Home Loans will contribute an additional 2% at closing. The 1% Down Payment program can reduce the time eligible home buyers need to save and open homeownership to those who are otherwise ready to take on a mortgage.
Most markets are in the midst of an affordability crisis, and saving for a down payment remains one of the biggest barriers for many potential home buyers. This is especially true for first-time buyers, who are often paying high rents. Typical asking rent nationwide is $2,062, or 3.6% higher than one year ago and up 31% since the start of the pandemic. (The typical rent in the U.S. in February 2020 was $1,597.) The combination of record-breaking home price appreciation and rising interest rates means a majority of first-time buyers (64%) are putting down less than 20%, and one-quarter of first-time buyers are putting down 5% or less.
Zillow Home Loans’ 1% Down Payment program lowers the down payment barrier and increases access to the housing market for eligible borrowers. An analysis by Zillow Home Loans’ shows that by reducing the down payment burden to 1% of the purchase price, a home buyer looking to purchase a $275,000 home in Phoenix, Arizona, who makes 80% of their area’s median income and saves 5% of their income would need only 11 months to save for the down payment. By comparison, the same buyer who needed to save 3% of the purchase price would require two and half years (31 months) to save that amount.
“For those who can afford higher rent payments but have been held back by the upfront costs associated with homeownership, down payment assistance can help to lower the barrier to entry and make the dream of owning a home a reality,” said Zillow Home Loans’ senior macroeconomist Orphe Divounguy. “The rapid rise in rents and home values means many renters who are already paying high monthly housing costs may not have enough saved up for a large down payment, and these types of programs are welcome innovations in lowering the potential barriers to homeownership for those who qualify.”
Home buyers looking to purchase in the next year should take steps to research and prepare for getting a mortgage as they start on their home-financing journey. Among those steps:
- Understand your credit profile: Credit scores are key to getting approved for a mortgage, but for many home buyers, understanding credit is complex.
- Improve your credit score: Once buyers familiarize themselves with what’s in their credit report, they can take steps to pay down existing debts, pay bills on time, and review their credit report and dispute possible errors.
- Avoid closing accounts: Don’t close an account to remove it from your report. Those accounts aren’t automatically removed and will continue to show up on your report.
- Hold off on financing large new purchases: Wait to make purchases that need to be financed, such as a car, until after you close on a home. This type of purchase will impact your debt-to-income ratio, which will negatively affect the amount of home loan you qualify for.
- Determine what affordability looks like: Once buyers have a good understanding of their credit report and their credit score is at least 620 (generally the lowest score accepted by mortgage lenders) it’s time to understand how much home they can afford. Use Zillow’s mortgage affordability calculator to customize payment details.
Zillow Home Loans’ 1% Down Payment program is currently available to eligible borrowers in Arizona, with plans to expand. Through the 1% Down Payment program, Zillow Home Loans will pay 2% of the down payment for eligible borrowers. The 2% is paid through closing and not as a payment to the borrower. Interested applicants should call 1-833-372-1449 to speak with a Zillow Home Loans representative to learn more about the program and determine if it’s the right fit for their circumstances.
About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make it easier to unlock life’s next chapter. As the most visited real estate website in the United States, Zillow® and its affiliates offer customers an on-demand experience for selling, buying, renting, or financing with transparency and ease.
Zillow Group’s affiliates and subsidiaries include Zillow®; Zillow Premier Agent®; Zillow Home Loans™; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+™, which houses ShowingTime®, Bridge Interactive®, and dotloop®. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
SOURCE Zillow Home Loans
For further information: Media contact: Jessica Drum, Zillow Home Loans, [email protected]
Source: zillow.mediaroom.com
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Conference call to be webcast live at 2 p.m. PT / 5 p.m. ET
SEATTLE, Oct. 9, 2023 /PRNewswire/ — Zillow Group, Inc. (Nasdaq: Z and ZG) announced today it will release third-quarter 2023 financial results after market close on Wednesday, Nov. 1, 2023. The company will host a conference call and webcast to discuss its results that afternoon at 2 p.m. PT / 5 p.m. ET.
Information about Zillow Group’s financial results, including a link to the live webcast and recorded replay, will be available on the company’s Investor Relations website at: https://investors.zillowgroup.com/investors/financials/quarterly-results/default.aspx
Please register in advance at
https://www.netroadshow.com/events/login?show=cf4e1e3a&confId=45408 to receive emailed instructions to access the live conference call. This pre-registration process is designed to reduce delays due to operator congestion when accessing the live call.
For more information about Zillow Group, please visit https://investors.zillowgroup.com.
About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, great partners, and easier buying, selling, financing and renting experiences.
Zillow Group’s affiliates, subsidiaries and brands include Zillow®; Zillow Premier Agent®; Zillow Home Loans℠; Trulia®; Out East®; StreetEasy®; HotPads®; and ShowingTime+℠, which includes ShowingTime®, Bridge Interactive®, and dotloop®.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.
(ZFIN)
SOURCE Zillow Group
For further information: Media: Chrissy Roebuck, [email protected]; Investors: Brad Berning, [email protected]
Source: zillow.mediaroom.com
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I was stoked to see two brands I love team up. Zillow and Giveback Homes partnered to “support real estate agents, their families and others in the industry community impacted by recent natural disasters to ‘make home feel like home again.’”
Zillow launched this campaign with Giveback Homes with a $10,000 donation and a promise to match donations up to $20,000. These funds, along with any other funds donated, are being used to help impacted families rebuild their lives. Families will receive in-kind donations such as refrigerators, washers and dryers, mattresses, and other necessities to help in their rebuilding efforts.
I feel like I’ve been waiting years for this partnership to occur. Interested in donating?
Donate Now HERE
Source: geekestateblog.com