mortgage lender

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Now that you know what you’re looking for, the next step is figuring out what you can afford. A review of your income, savings, monthly expenses, and debt will be necessary.

Early on in the process, you’ll want to get pre-qualified for a mortgage loan, which helps determine how much you can afford. It enables you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property.

A pre-approval, a simple calculation done by a mortgage lender, will tell you the amount you’ll be able to finance through a loan and what your monthly payment will be. When you find a home to buy, a pre-approval also reassures the seller that you have the financial means to purchase his or her home.

Knowing what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. It pays to check with several lenders before you start searching for a home.

The price you can afford to pay for a home will depend on several factors, such as:

  • Gross income (the funds you have available for the down payment)
  • Closing costs
  • Cash reserves required by the lender
  • Debt
  • Credit history
  • Type of mortgage you select
  • Current interest rates

Source: century21.com

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Everyone wants to be #1 these days. I guess that’s no different than any other days, but the battle to be on top is growing more and more contentious, especially as overall home loan volume wanes.

Rather surprisingly, a nonbank lender that also happens to be a wholesaler took the second spot for home purchase lending in the second quarter of the year.

United Wholesale Mortgage Beat Out Everyone But Wells Fargo

  • The wholesale lender originated $11.2 billion in the second quarter
  • Of which $8.3 billion was home purchase loans
  • Overall loan volume up 68% year-over-year compared to the six-month mark of 2017
  • Highest growth rate among top 25 mortgage lenders in the country

I’m referring to United Wholesale Mortgage, or UWM for short, which issued a press release to celebrate the accomplishment this morning.

It’s the latest in a string of “we’re bigger than you” announcements in the mortgage industry, with a prior notable one being Quicken Loan’s declaration that it was the largest home loan lender in America back in February.

Of course, all of these proclamations come with a little fine print, or perhaps some very specific categorization.

For example, Quicken was the top mortgage lender in the fourth quarter of 2017, but Wells Fargo was still the top lender for 2017 overall.

And UWM was simply the largest nonbank purchase loan lender in the nation during the second quarter. If we remove the nonbank part from the equation, Wells Fargo was once again king, by far.

Per their own press release, UWM noted that Wells Fargo mustered $15.4 billion in home purchase loans during the quarter, nearly double their $8.3 billion. But Wells Fargo is a depository bank, thus putting it in a different category.

The list continues, with Bank of America managing $7.9 billion, Chase ringing in $7.86 billion, and Quicken Loans rounding out the top five with $7.8 billion.

United Wholesale Mortgage vs. Quicken Loans

  • Both mortgage companies are based out of Michigan
  • UWM is a wholesale mortgage lender that works with brokers
  • Quicken operates both a retail and wholesale lending channel
  • They’ve been taking jabs at one another lately as the rivalry intensifies

For the record, Quicken is the only other nonbank in that short list, with it being clear that UWM is proud to have beaten them.

They even go as far as to mention that they produced $11.2 billion in total loan volume during the second quarter, of which 74% was for new home purchases, compared to just 31.6% of Quicken Loans’ second quarter loan volume.

And highlight the importance of purchase business being “critical” to a mortgage lender’s success these days with mortgage rates on the rise, while bashing call centers and smartphone apps.

In other words, UWM is saying it’s the home purchase loan destination of choice, despite being far less well-known compared with Quicken and its Rocket Loans.

Amazingly, they managed this feat via the wholesale channel alone, which relies upon mortgage brokers to connect with home buyers on its behalf.

Meanwhile, Quicken has both a retail and wholesale channel to originate home loans, though that seems to have been a source of conflict lately.

Much of the drama played out over at HousingWire, which you can check out for yourself. But it basically involves claims that Quicken poaches broker’s wholesale customers via its retail channel, which Quicken later referred to as a smear campaign.

What’s crystal clear is that the battle to be numero uno in the mortgage business is heating up, ostensibly because being #1 is often enough for the consumer to make their choice.

My guess is we’ll see a lot more jostling and back and forth, and perhaps more clever categorizing as these lenders try to claim biggest and best amid a weakening mortgage market that is heavily tilted toward home purchases.

UWM has held the top spot for wholesale mortgage lending overall for more than three years, and currently holds a sizable 20.4% market share, more than triple its closest competitor, Caliber Home Loans, which has just a 6.6% market share.

Source: thetruthaboutmortgage.com

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History of Conventional Home Loans:

As we learned in our post about FHA loans and the
history of mortgages, being a homeowner prior to the Great Depression
was a major challenge that only few could take on. Thankfully, the mortgage
industry was revamped in order to make homeownership a more attainable goal. One
of the changes made was the introduction of modern conventional loans with the
most common loan terms being 15 and 30-year mortgages. Today, conventional
loans are regulated by The Federal National Mortgage Association (Fannie Mae)
and The Federal Home Loan Mortgage Corporation (Freddie Mac).

Fannie Mae was created by congress in 1938. Fannie Mae mortgages
–long termed and fixed-rate – allowed the American Dream to become a reality.
The new mortgage products also allowed borrowers to refinance. In 1968, Fannie
Mae became a private shareholder-owned corporation and began funding its
operations through Wall Street instead of the federal government. During these
thirty years, Fannie Mae was the largest buyer and seller of government-insured
mortgages.

Freddie Mac, on the other hand, was created in 1970 to provide
continuous and affordable mortgages for the American people as well as to keep
Fannie Mae from functioning as a monopoly in the mortgage industry. Nearly 20
years later, in 1989, Freddie Mac went public.

In 2017, conventional loans (Fannie Mae and Freddie Mac) funded
73.8% of new homes. Conventional loans, sometimes known as conforming loans,
dominate the mortgage industry. With close ties to the government, they are
likely to never fail, allowing Americans to forever be able to accomplish the
American Dream.

Credit Score Requirements for Conventional Home
Loans:

Your credit score is kind of like an adult GPA. These three
numbers follow you throughout your adult life and determine what you are
qualified for. However, it is important that you maintain and improve
your credit score.

When applying for a conventional loan, you should have a
minimum credit score of 620. If your credit score is not there yet, contact
your Total Mortgage lender about your options and down the road, you may be
able to refinance into a conventional loan.

Conventional Mortgage Down Payment Requirements:

Down payments for conventional loans range between 3% and 20%.
The variance of down payments depends on the type of conventional loan that you
qualify for and the property that you are purchasing. For example, a
Conventional 97 has a 3% down payment requirement, and is the lowest down
payment available for conventional loans. If you are buying a second home, a
multi-family home, an adjustable rate mortgage, or a jumbo loan, your down
payment requirement will range from 5% to 40%.

With the variance of down payments, there is also a PMI, or
private mortgage insurance, that is required on the loan if less than 20% is
put down by the borrower. However, unlike FHA PMI, conventional PMI is able to
be removed from your mortgage payment once you reach 20% equity on your home.
You should contact your lender to do so, or PMI will automatically fall off
after 22% equity on the home has been reached.

In short, if you put a down payment of 20% on your loan, you
will not have to enter into PMI. PMI is put in place on loans to protect the
lender if the borrower defaults on the loan.

What are your options if a Conventional Home Loan isn’t
for you?

With the requirements above, what if you do not qualify for a
conventional loan? What do you do?

  1. Mortgages have been made for every financial background. If conventional loans are not the way you want to go, consider:
    • USDA Loans – these loans are great if you are looking to live in rural or suburban areas. There is also no down payment requirement and credit score requirements are made by the lender themselves.
    • VA Loans – if you have served or had a spouse that has served, this loan option is available to you. It does not have a down payment or credit score requirement.
    • FHA Loans—these loans are great for first-time home buyers that do not want to live in a USDA approved property or who don’t qualify for a VA loan. FHA loans have a low-down payment requirement and have low credit score requirements. You can learn more about FHA Loans here.
  2. If you are unsure still, you can visit our my mortgage builder. This program will ask you some questions and help you determine which mortgage option might be best for you.
  3. OR, contact our Loan Officers today! They will be able to find a loan that is the best fit for you based on your wants and needs.

Summary:

Conventional loans are a great option for borrowers with a
credit score over 620 who don’t qualify for other loan products like VA or USDA
loans, and could potentially put you in a home for as little as 3% down. If
you’d like to find out more about conventional loans, or to get pre-approved
today, please contact one of our loan officers at totalmortgage.com/bankers.

Sources:

https://www.fanniemae.com/portal/about-fm/fannie-mae-history.html

http://content.time.com/time/business/article/0,8599,1822766,00.html

Carter Wessman

Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.

Source: totalmortgage.com

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Today we’ll check out “Loan Cabin,” yet another online mortgage lender that has turned to technology to streamline the home loan process and lower costs for its customers.

It’s seems to be a common theme these days, and if it results in more consumer choice and a cheaper mortgage, I’m all for it.

After all, few people want to visit a branch, fill out paperwork by hand, or do things the old-fashioned way, at least when it comes to a mortgage.

Loan Cabin says it can provide a quick, simple, and transparent home loan using tech. And instead of it taking 45 days or longer, they aim to close in as few as 21 days.

Loan Cabin Fast Facts

  • A direct-to-consumer mortgage lender
  • Offers home purchase financing and mortgage refinances
  • Founded in 2015, headquartered in Lombard, Illinois (Chicago)
  • Currently licensed to do business in 16 states nationwide
  • Aim to close loans in 21-30 days using leading edge technology

Loan Cabin is a direct mortgage lender based in Lombard, Illinois, which is a suburb of Chicago.

They are a relatively young company, having been formed in 2015. But their pitch is that of a modern lender, not a stale old bank that uses outdated processes and clunky technology.

Instead, they say they’re able to provide aggressive quoted rates in just minutes, and an initial pre-approval in 20 minutes or less, with a 100% online application process available.

The company is currently licensed in 16 states nationwide, including:

Alabama, California, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, New Jersey, Ohio, Pennsylvania, Mississippi, Tennessee, Texas, and Washington.

They say they’re working to expand throughout the country.

How to Apply for a Mortgage with Loan Cabin

  • Visit their website and click “Get Started” to apply immediately
  • They offer a digital mortgage application powered by ICE
  • Allows you to complete most loan tasks electronically from the device of your choosing
  • Loans are underwritten, processed, and closed in-house using their own funds

Loan Cabin makes it easy to apply for a home loan. Simply cruise over to their website, click on “Get Started” and you’ll be in their digital mortgage application powered by ICE technology.

But before you do that, you can see their daily mortgage rates online to ensure they have competitive pricing relative to other lenders.

However you approach it, they make it simple thanks to the latest technology, which allows you to complete most tasks electronically, whether it’s uploading documents or eSigning disclosures.

Once you complete the application, a loan officer will get in touch to discuss pricing and tie any loose ends before loan submission (or provide you with a pre-approval).

Assuming you like what you hear, you can go ahead and lock your loan, order the appraisal, and wait for an underwriter to issue you a conditional approval.

All in all, they aim to close loans in three weeks as opposed to 45 days or longer, which tends to be the industry average.

They’re able to move quickly because they’re a direct mortgage lender, meaning everything is completed in-house and they uses their own funds to close loans.

Mortgage Programs Offered by Loan Cabin

  • Home purchase loans
  • Refinance loans: rate and term, cash out, streamline
  • Conforming loans backed by Fannie/Freddie
  • Jumbo loans
  • FHA loans
  • VA loans
  • Fixed-rate mortgages: 15, 20, and 30-year terms
  • Adjustable-rate mortgages: 5/1 and 7/1 ARMs

Loan Cabin offers most of the major home loan programs you’d expect from a mortgage lender, other than perhaps USDA loans.

You can get both a home purchase loan or a mortgage refinance, including a rate and term refinance or a cash out refinance.

In terms of qualifying property types, they finance single-family homes, 1-4 unit multi-family properties, townhouses, condos, and PUDs. The only real exception is co-ops.

And you can get a mortgage on a primary residence, second home, or an investment property.

With regard to loan type, they offer conforming loans backed by Fannie Mae and Freddie Mac, FHA loans, VA loans, and jumbo home loans.

It’s possible to get a fixed-rate mortgage in a 15-, 20-, or 30-year term, or an adjustable-rate mortgage, such as a 5/1 or 7/1 ARM.

Ultimately, they should have a loan program to fit most borrowers out there, whether you’re a first-time home buyer or existing homeowner.

Loan Cabin Mortgage Rates

One positive to Loan Cabin is the fact that they publicize their mortgage rates online for all to see.

So before you jump into an application, you can see where they stand pricing-wise. From what I saw, they appeared to be pretty low on all their fixed-rate offerings.

To see for yourself, simply navigate over to the “View Rates” tab on their website and you’ll be able to check out daily rates for a variety of loan programs.

You can even enter in your own loan scenario to explore different options, or to simply obtain a more customized rate.

This level of transparency is always a plus and tells us they’re going to do their best to be competitive in the pricing department versus the lenders that don’t even mention rates.

That being said, they don’t list their lender fees online, other than saying you can request a mortgage without lender fees.

While it’s nice to have that option, it’d also be helpful to know upfront if they charge a loan origination fee or any other fees.

Loan Cabin simply says it does not charge any application fees or so-called junk fees.

Loan Cabin Reviews

On Zillow, the company has a 4.84-star rating out of 5 from nearly 200 customer reviews, which is a very solid score.

A good number of those reviews indicate that the interest rate and closing costs were lower than expected as well.

Over at Bankrate, they have a similar 4.8-star rating from about 50 reviews, with most of them perfect 5-star reviews and 95% of customers saying they would recommend them.

Lastly, they’ve got a 4.4-star rating out of 5 on Google from just over 50 reviews, which while not as strong, is still quite positive.

In summary, Loan Cabin appears to be well-liked and big on technology, which aside from being convenient could also save you money if they pass the savings along as they say.

Because they are an online mortgage lender, they could be well-suited for an existing homeowner looking to save money via a refinance, or even a home buyer who is confident to do most things remotely.

Loan Cabin Pros and Cons

The Good

  • Can apply directly from their website on any device without a human
  • Offer a fully-digital mortgage application powered by ICE technology
  • They post their daily mortgage rates online
  • Plenty of home loan programs to choose from
  • Excellent customer reviews across all ratings websites
  • Lots of helpful mortgage tutorials on their website
  • They process, underwrite, and fund loans in-house

The Not So Much

  • Not licensed in all states
  • No brick-and-mortar locations
  • Do not offer USDA loans, second mortgages, or HELOCs
  • No mention of lender fees
  • Will transfer your mortgage to a loan servicer shortly after closing

(photo: Echo Valley Ranch)

Source: thetruthaboutmortgage.com

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Following the announcement made last summer to acquire Mortgage Lenders of America, “Zillow Home Loans” is now officially open for business.

The new division of Zillow, which is 300 employees strong and operating out of Overland, Kansas, complements the company’s Zillow Offers platform, which acts as an iBuyer of homes in various regions of the country.

But the use of Zillow Home Loans is not restricted to just Zillow Offers’ home sales, per a company press release.

This means they’ll act as a full-scale mortgage lender, ostensibly offering both purchase and refinance loans to borrowers nationwide, regardless of whether they’re buying or selling a Zillow-owned home.

As to why they entered the competitive space, Zillow notes that obtaining a mortgage is often the “most complicated part of buying a home,” and so it’s eliminating that pain point. Or at least taking more control of it.

Doing so makes their business of buying and selling homes a lot more certain, seeing that they’ll control the financing piece if the customer chooses to use Zillow Home Loans.

They might even be able to get the home seller to use them for financing the replacement home purchase, while snagging the buyer’s financing of a Zillow Offers’ property at the same time.

There’s clearly a lot of upside here.

What Zillow Home Loans Offers

At the moment, they’re advertising four main types of home loans on their website, including:

– Conventional loans (those backed by Fannie Mae and Freddie Mac)
– FHA loans
– VA loans
– USDA loans

Those four cover the lion’s share of the mortgage market, with jumbo loans and reverse mortgages the only obvious absentees.

I gave their website a whirl and filled in what amounted to be a lead form, which asked all the basic questions like purchase or refinance, home value, loan amount, credit score, if I wanted fries with that, and so on.

I was feeling frisky so I even put in my email address and phone number, but sadly, upon completion they simply told me a loan officer would be in touch soon.

So there doesn’t seem to be any cool technology happening, at least not at the moment. I was hoping to get a real-time quote or be able to move along further in the process without having to speak to anyone.

After all, it’s all the rage these days to not speak to a human being, especially when it involves a major financial transaction. Oh well…

They Basically Exist to Serve the Zillow Offers Business

  • Home loans business gives them more control of iBuying business
  • Also creates a new source of profit for Zillow
  • Will be similar to a home builder with its own financing department
  • Whether they branch out beyond that to become a major player in mortgage space remains to be seen

If you search for a mortgage on Zillow, at least for the time being, you probably won’t see Zillow Home Loans listed in their lender marketplace.

Instead, you’ll come across lots of unaffiliated, third-party lenders that pay Zillow a fee for what amounts to a borrower lead.

That tells me Zillow Home Loans is mostly focused on the home buyers and sellers using its burgeoning Zillow Offers iBuyer service.

Their press release, which is titled, “Zillow Group launches Zillow Home Loans to Support Zillow Offers,” also makes this abundantly clear.

In other words, Zillow is acting much like the major home builders out there that tend to have their own financing departments.

Home builders with financing departments have very high attach rates, with most home buyers opting to just use the lender being thrown their way, especially if they’re worried about qualifying. Or if a first-time buyer.

Same thing happens with real estate agents by the way – they refer their buyers to a preferred mortgage broker or lender and that person/entity is often used.

Anyway, instead of relying on a third-party to offload their stable of properties to home buyers, Zillow can simply turn to their in-house lender.

This creates several advantages, one being reliability. Home buying and selling isn’t inherently difficult, but financing can often get in the way.

Having control of the lending piece means they can stay on track. And in doing so, they create a new line of profit as well.

It also works with their whole speed and convenience thing, which is the foundation of iBuying to begin with.

And they could convince more homeowners to use Zillow Offers if they bake in discounts for also using their financing.

Lastly, they have a good business in their lending marketplace, so they probably don’t want to cannibalize it.

Whether they eventually branch out to take a bigger chunk of the mortgage market remains to be seen, but that doesn’t appear to be the goal, at least not yet.

So we probably won’t see any fancy technology or innovative stuff like that of Rocket Mortgage and similar debutants looking to shake things up.

But as noted earlier, the new lender isn’t restricted to Zillow Offers’ home sales, and they appear to offer mortgage refinancing as well.

I guess why not if they’ve already got the platform up and running.

Source: thetruthaboutmortgage.com

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Today we’ll review yet another online mortgage lender called “Lendova” that says it can provide lower rates with no hidden fees and all the latest technology.

Those are probably the top three things borrowers are looking for these days, which collectively result in a better user experience and a lower monthly payment when all is said and done.

What’s not to like about an easier mortgage process and a cheaper loan? You got me.

Let’s find out more about this direct lender based out of Texas to see if they could be a good fit for you.

Lendova Fast Facts

  • Direct-to-consumer mortgage lender
  • Offers home purchase financing and refinance loans
  • Founded in 2002, headquartered in Dallas, Texas
  • Parent company is American Heritage Capital, LP
  • Licensed to do business in seven states at the moment

Lendova is a direct-to-consumer mortgage lender that operates entirely online.

They are actually a dba of their parent company American Heritage Capital, which also operates brands like Texas Trust Home Loans and AHC Lending.

The company is based out of Dallas Texas and has been around since 2002 – my assumption is Lendova is the much younger digital offshoot.

Like other online mortgage lenders, they strive to make the home loan process a lot less painful and much faster by leveraging the latest technology.

This is accomplished via their “All Digital Mortgage,” which as the name implies means you should be able to complete most tasks electronically.

Currently, Lendova is only licensed in seven states nationwide, including California, Colorado, Florida, New Jersey, Texas, Virginia, and Washington.

How to Apply for a Mortgage with Lendova

  • You can call them directly or schedule a phone consultation online
  • Or simply begin on your own by clicking on “Apply Now” via their website
  • Alternatively fill out a short contact form and a loan consultant will call you back
  • Once signed up you’ll be able to manage your loan via the online borrower portal

You’ve basically got four options when it comes to starting the home loan process with Lendova.

You can visit their website and simply click “Apply Now” and you’ll begin the loan application on your own. Or you can fill out a short contact form and a loan consultant will call you to discuss your needs.

Alternatively, you can simply call them up on the phone directly or schedule a phone call at an allotted time using their online scheduler powered by Calendly.

The nice thing about Lendova is they let you price your loan online without the need for a loan officer, so for those who are comfortable, you can get pricing then dive right into the application.

Those who want a bit more hand-holding, or simply prefer to speak to humans, can go with the other options.

Either way, you’ll be able to review and electronically sign loan documents online, upload necessary paperwork, and manage everything from a borrower portal.

They also offer a mortgage pre-approval process whereby you can obtain your credit scores and a renewable pre-approval certificate in under five minutes.

So if you’re a prospective home buyer looking to determine what you can afford and/or want to show a real estate agent you mean business, this could serve as a quick solution.

Loan Programs Available at Lendova

  • Home purchase loans
  • Refinance loans: rate and term, cash out, debt consolidation
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo home loans
  • Fixed-rate mortgages: 10, 15, 20, 25, and 30-year loan terms
  • Adjustable-rate mortgages: 5/1, 7/1, and 10/1 ARMs

Like most mortgage lenders, Lendova offers both home purchase financing and refinancing for existing homeowners.

They lend on all the usual property types, including single-family homes, condos/townhouses, and 1-4 unit properties.

You can get a mortgage on a primary residence, second home, or investment property.

While they appear to offer both conforming loans backed by Fannie Mae and Freddie Mac and jumbo loans, it’s unclear if they fund government loans like FHA, VA, or USDA loans.

If that’s the case, borrowers seeking such financing will have to look elsewhere unfortunately.

Those who can make do with a conventional loan can take advantage of their fixed-rate or adjustable-rate loan options, which are available in a wide variety of different terms.

Lendova Mortgage Rates

One nice thing about Lendova is they lead with their mortgage rates. That means you’ll find them on their homepage front and center.

Additionally, you can create personalized mortgage rate quotes if you click on the “Rates” tab via their website’s top menu. And you don’t need to sign up or speak to a human!

From what I saw, their mortgage rates were very competitive and they display three main options for each loan program, including the lowest rate, reduced closing costs, and no closing costs.

And even more options beyond that if you really want to drill down and see different rate and fee combinations.

All of their mortgage rates seemed to come free of any lender fees, with only third-party fees like home appraisal and title insurance listed, along with the usual government recording fees.

So it appears they don’t charge their borrowers any fees directly, which is also a plus and makes their mortgage rates look that much better.

They mention on their website that there are “no hidden fees or charges,” so perhaps they simply don’t charge a loan origination fee or underwriting/processing fees.

If that’s the case, you can take their mortgage rates at face value – just pay attention to any discount points required.

Lendova Reviews

On LendingTree, Lendova has a perfect 5-star rating from about 300 customer reviews, with a 99% recommended rate.

In the past, they’ve also made it into the quarterly list of the top customer-rated lenders on the LT platform.

At Bankrate, the company has a 5-star rating from over 200 customer reviews, with nearly all of them totally perfect. Additionally, 100% of reviewers would recommend them to others.

And over on Google, they have a similarly solid 4.6-star rating out of 5 from about 70 reviews.

While their parent company American Heritage Capital isn’t Better Business Bureau accredited, they do have a perfect ‘A+’ rating based on customer complaints.

In summary, Lendova gets high marks for transparency, customer service, and mortgage rate pricing.

So if you’re looking for a deal on your home loan, Lendova might be a lender to consider. They also seem to make things easy for borrowers with their “All Digital Mortgage.”

Lendova Pros and Cons

The Pros

  • Offer a fully digital mortgage application
  • You can apply directly from their website in minutes
  • Mortgage rates are prominently displayed online
  • Can create your own personalized rate quotes in seconds without signing up
  • Excellent customer reviews across all ratings websites
  • A+ BBB rating
  • Say they thrive to close loans in 15-21 days

The Cons

  • Only licensed in a handful of states
  • No physical locations
  • May not offer government-backed mortgages (FHA/VA/USDA)
  • No second mortgages or home equity loans

Source: thetruthaboutmortgage.com

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While you may have not heard of “McGlone Mortgage” before, they’re making waves with their superior customer service, something that can often be elusive in the mortgage biz.

The Appleton, Wisconsin-based direct lender has some of the highest marks in the industry when it comes to borrower satisfaction, and says it’s able to offer low rates and fees at the same time thanks to technology.

Their philosophy is “Customers for Life,” with referrals from past customers and local real estate agents having delivered the majority of the company’s business.

In other words, they want to make you happy so you tell your friends and family to use them too, which could save them money on advertising dollars and keep more money in your own pocket.

In case you’re wondering, the surname McGlone is of Irish descent, and almost sounds like “loan.” So perhaps the individual that started the company was destined to dish out home loans.

McGlone Mortgage Fast Facts

  • Direct mortgage lender that offers refis and home purchase loans
  • Founded in 1999, headquartered in Appleton, Wisconsin
  • A dba of parent company Homestead Funding Corp.
  • Licensed to do business in 44 states and the District of Columbia
  • Excels in customer satisfaction with near-perfect ratings

McGlone Mortgage is a direct-to-consumer retail mortgage lender headquartered in Appleton, Wisconsin that offers home purchase financing and refinance loans.

They’ve been doing business since 1999, which is a lifetime for a mortgage lender.

The company operates as a dba of its parent Homestead Funding Corp., which is based out of Albany, NY.

Homestead funded about $2 billion in home loans last year, but it’s unclear how big McGlone Mortgage.

While their parent company mostly lends in its home state of New York, McGlone is licensed to do business in 44 states and the District of Columbia.

They don’t appear to be available in Alaska, Arkansas, Hawaii, Missouri, Nevada, or Ohio at the moment.

How to Apply with McGlone Mortgage

  • They offer a digital home loan process powered by SimpleNexus
  • It allows you to complete the loan application electronically from any device
  • You can also download their free mortgage app to take advantage of mobile document scanning
  • After submission, you can get updates as you go and message your loan officer instantly if you have questions

McGlone Mortgage prides itself on customer service and to that end makes it super simple to apply for a home loan.

You’ve got the option of applying from their website or via their free smartphone app, or by simply calling them up on the phone directly.

Those who prefer to work with someone specific can peruse their online loan officer directory first, then get in touch via their displayed contact information.

It’s also possible to fill out a short lead form on their website, at which point a loan officer will reach out to you.

Regardless of how you proceed, you’ll eventually land in their digital mortgage application powered by SimpleNexus that lets you complete most tasks electronically.

For example, you’ll be able to scan/upload paperwork, eSign disclosures, digitally verify income/assets, and receive real-time updates as your loan progresses.

All of it can be accessed via the online borrower portal 24/7 for maximum convenience.

Additionally, prospective home buyers can generate pre-approval letters on the fly that can be shared with real estate agents from a mobile device.

Loan Programs Offered by McGlone Mortgage

  • Home purchase loans
  • Refinance loans: rate and term, cash out, streamline
  • Home renovation loans: FHA 203k or Fannie Mae HomeStyle
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Government-backed loans: FHA/USDA/VA
  • High balance / super conforming loans
  • Jumbo home loans
  • Energy Efficient Mortgages
  • HomeReady (Fannie’s 3% down loan program)
  • State Bond Programs for first-time buyers
  • Fixed-rate and adjustable-rate options available in a variety of loan terms

Aside from excelling in customer satisfaction, McGlone Mortgage also offers an impressive menu of loan programs.

And they lend on all major property types and occupancies, including condos/townhomes, second homes, investment properties, and multi-unit properties.

You can get a conventional loan backed by Fannie or Freddie, a jumbo loan that exceeds the conforming loan limit, or a government loan including an FHA loan, VA loan, or USDA loan.

Those who already own a property can apply for a rate and term refinance, a cash out refinance, a streamline refinance, or a home improvement loan, including the FHA 203k or the Fannie Mae HomeStyle Renovation.

They also offer Energy Efficient Mortgages (EEMs), along with a jumbo mortgage up to 85% LTV that doesn’t require private mortgage insurance.

Lastly, state bond programs are available in select states that allow first-time home buyers to apply for a grant to help with down payment and/or closing costs.

In terms of specific loan programs, you can get a fixed-rate mortgage such as a 30-year, 15-year, 20-year, or 10-year fixed, or an adjustable-rate mortgage, such as a 5/1 or 7/1 ARM.

McGlone Mortgage Rates

McGlone Mortgage recently upped their game when it comes to pricing transparency. You can now find daily mortgage rates on their website for a variety of loan products.

At last glance, they displayed daily rates for the 30-year fixed and 15-year fixed for both a home purchase transaction and a refinance.

You’ll also see an FHA and VA mortgage rate, which gives us a good idea of pricing across their product menu.

From what I saw, their rates were pretty strong, especially since the fees listed (discount points) were reasonable.

You may also come across their interest rates in mortgage comparison tables on websites such as Bankrate, so keep an eye out when shopping your rate.

At the same time, lender fees don’t appear to be mentioned on their website. So it’s unclear if they charge underwriting or processing fees, or a loan origination fee.

Although I have seen them advertise on Bankrate and list what appeared to be a flat origination fee of $1,895.

As always, take the time to shop around and obtain several mortgage rate quotes before deciding on a lender. Otherwise you’re doing yourself and your wallet a disservice.

McGlone Mortgage Reviews

On Bankrate, McGlone Mortgage has a pretty amazing 5-star rating out of a possible 5 from nearly 1,300 customer reviews.

And on top of that, 100% of customers who reviewed the lender would recommend them to others.

It’s the same story over at Zillow, where the company enjoys a 4.98-star rating from over 1,000 customer reviews.

A whole lot of those reviews indicate that both the interest rate and fees/closing costs were both lower than expected. That might explain the high level of satisfaction.

Additionally, they’ve got a 4.8-star rating from about 200 customer reviews on Google, and a 4.5-star rating from 30 reviews on Yelp.

One of the reviews even mentions a customer receiving a gift package containing Wisconsin’s finest cheese. Sounds pretty above the beyond if you ask me.

The mortgage company is also an accredited business with the Better Business Bureau (since 2015) and currently boasts an ‘A+’ rating based on complaint history.

They even have a perfect 5-star rating on the BBB website, which is relatively unheard of since most people generally go there just to complain.

In summary, McGlone Mortgage could be a good choice for both home buyers and existing homeowners looking to refinance thanks to their exceptional customer satisfaction and perceived low rates/fees.

While they might not be a household name, they’re certainly legit if you take the time to read their thousands of highly positive customer reviews.

McGlone Mortgage Pros and Cons

The Pros

  • Can apply online via their digital mortgage platform
  • Also offer a free smartphone app
  • Tons of home loan programs to choose from
  • Near-perfect customer reviews across all major ratings websites
  • A+ BBB rating, accredited business since 2015
  • Free mortgage calculators on their website

The Cons

  • Not licensed in all states
  • Do not list lender fees

(photo: Marcus Murphy)

Source: thetruthaboutmortgage.com

Apache is functioning normally

A new startup by the name of “BoardRE” hopes to change the real estate game when it comes to all-cash home buyers and the rest of us.

Even if you don’t have the necessary funds, you can still present yourself as an all-cash buyer to a home seller with BoardRE and ideally take advantage of the many benefits that go with it.

How BoardRE Works

  • Board buys a property on your behalf using all cash
  • Then provides you with a mortgage via their finance department
  • You are underwritten for the loan prior to an offer being submitted
  • To ensure you’ll qualify for the home purchase if accepted by the seller

The way BoardRe (also known simply as Board) works is relatively simple.

Similar to obtaining a mortgage, you submit a loan application to Board, which then underwrites the loan to determine a maximum purchase price.

Assuming your income, assets, and credit all pass muster, you’ll get approved for a certain cash offer.

This is similar to the Reali Cash Offer, though that company also acts as your real estate agent.

The Board Offer Letter

As seen in the screenshot above, the pre-approval letter will detail the cash available, along with the proposed mortgage rate you’ll qualify for once you take out a mortgage.

They say it typically takes less than two hours (and always the same day if during normal business hours) to approve an offer once you find a home.

This is accomplished via automated underwriting and by pulling a desktop appraisal to quickly determine if the offer price fits with the market value.

Board can even place a cash offer the same day via express underwriting if submitted by 3pm local time and you provide all necessary documentation.

The company will then make an offer for your desired property, and if accepted, will purchase the property on your behalf.

At that time, you will need to wire the earnest money deposit to an escrow company that matches the amount of funds Board provided to the seller.

The home is then “reserved for you” until you close your mortgage with Board, which they estimate will take two weeks or less.

In terms of mortgage choice, the company does not offer FHA loans, but they do have down payment options as low as 5%.

Once the mortgage is closed, you’ll own the home and make mortgage payments each month like you would in a typical mortgage transaction.

How Much Does BoardRE Cost?

  • They don’t charge a fee to use their service
  • Instead they make money as your mortgage lender
  • So you must use them to obtain a home loan on the purchase
  • Board says they offer competitive mortgage rates from commission-free loan officers

You might assume there’s a fee to use their service seeing that it could provide some advantages over purchasing a home with a mortgage.

However, Board doesn’t charge home buyers, sellers, or real estate agents any additional fees.

Instead, the company makes money as the mortgage lender and generates revenue via that channel.

To that end, you’ll obviously want to make sure their mortgage rates and loan programs are attractive.

They say their rates are competitive because their loan officers aren’t commission-based.

Either way, you can always refinance your mortgage in the future assuming you qualify.

Speaking of, their “DropRate program” constantly monitors interest rates and notifies you if there’s an opportunity to save money or build equity faster.

Back to those potential pros – all-cash offers may boost the odds of getting your bid accepted over a prospective buyer who must use a mortgage.

An additional benefit could be securing the property for less than a borrower relying upon a mortgage since the seller might be more willing to accept less for a more reliable close.

Board cites industry data via Redfin that cash buyers are apparently 97% more likely to win the home if there’s a multiple bid situation versus buyers using a mortgage.

They can also close 10 times faster than the buyers needing a mortgage to close.

Perhaps even sweeter, it’s possible to get a discount on the purchase price if the underlying property is less competitive.

For example, a home buyer using Board to make an all-cash bid on a property that has been sitting could maybe lowball and get their offer accepted.

What to Watch Out For

  • An all-cash offer may not always be advantageous
  • Some real estate markets are more competitive than others
  • Also note that it’s possible to lose your earnest money if you don’t close the transaction
  • Board could save you time and money if all goes right

While this sounds like a good service, one could question the necessity in a softening real estate market where bidding wars are becoming less common.

Obviously, this varies by market, with some hot spots still quite competitive, and maybe always in demand.

But other regions of the country may not have the need for all-cash offers.

Board does recommend that you use a real estate agent who can negotiate on your behalf, and navigate things like the home inspection.

Speaking of, you’ll be required to pay for an inspection and sign off on it before Board purchases the property.

It’s always important to take the home inspection very seriously, whether you’re buying directly or a company like Board is buying on your behalf.

Some other issues that may arise include the appraisal coming in low, which could jeopardize financing, or experiencing some adverse event like job loss along the way.

If either happen, Board will try to save the deal, but if they’re unable to, they will refund the earnest money and sell the home on the open market at their expense.

But if you simply decide not to go through with the purchase after Board buys the home, you will lose your earnest money deposit and could even be responsible for additional costs associated with the resale of the property.

In other words, make sure you actually want to purchase the property in question!

All in all, it’s certainly an interesting idea that could make the whole process of buying and financing a home a lot easier, faster, and potentially cheaper too.

Board is backed by Y Combinator, Global Founders Capital, DN Capital, Ilya Kirnos, and Peter Thiel’s 1517 Fund.

Update: In early October 20202, BoardRE changed its name to “Accept.inc.” The name change is an effort to align with the company’s mission of giving home buyers a better chance at having their offers accepted.

Other companies in the all-cash offer space include HomeLight, Reali, and UpEquity.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Today we’ll check out Agora Lending, which like a lot of online mortgage lenders, says that by leveraging the latest mortgage technology, they’re able to pass the savings on to you.

This means they might have some of the most competitive rates in the industry, and they don’t simply state that fact – they post their daily rates online for all to see.

Instead of guessing, you can see where they stand in seconds by navigating to their website. They also tend to show up on mortgage comparison websites, so you may come across them that way as well.

For the record, the word agora is Greek and means a gathering place, which the company takes a step further and calls a place of gathering within a home.

Let’s learn more about them.

Agora Lending Fast Facts

  • Direct mortgage lender that offers home purchase and refinance loans
  • A division of One American Bank, a South Dakota-based depository
  • Founded in 2017, headquartered in Tempe, Arizona
  • Licensed to do business in all 50 states and the District of Columbia

Agora Lending is a direct-to-consumer mortgage lender based out of Tempe, Arizona that offers home purchase financing and refinance loans.

They are actually a dba of One American Mortgage, and also a division of One American Bank, a South Dakota-based depository.

As such, they are licensed to do business in all 50 states and the District of Columbia, which is a plus.

Because they operate online, you’ll be working remotely with one of their loan officers and loan processors to close your loan.

The good news is they use “next-generation mortgage software” to make it both faster and easier to get from start to finish. And in doing so, they may be able to offer you a lower rate.

How to Apply with Agora Lending

  • Call them up directly or fill out a short online form to get started
  • A loan officer will get in touch to discuss pricing and send you a link to apply
  • They offer a digital mortgage application and the ability to electronically complete and sign forms
  • Aim to close loans quickly and efficiently using the latest mortgage technology

To get started, you can simply call them up on the phone or fill out a short mortgage lead form on their website.

Either way, you’re going to need to speak to someone before you can formally apply for a home loan, which is a slight negative given available technology these days.

But it’s probably in your best interest to inquire about interest rates and pricing before you proceed anyway.

Once you speak with a loan officer, you’ll be sent a registration email that allows you to complete the loan application online via their digital platform.

Most tasks can be completed electronically, such as filling out the application and eSigning disclosures. You can also scan and upload necessary paperwork.

Once submitted, you’ll get updates in real-time as your loan progresses to the next step.

Loan Programs Available at Agora Lending

  • Home purchase loans
  • Refinance loans: rate and term and cash out
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • High balance loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • Fixed-rate and adjustable-rate options
  • They lend on condos/townhomes and investment properties

Agora Lending offers a lot of different loan options, including home purchase loans and refinance loans for all occupancy types.

You can get a rate and term refinance or a cash out refinance, and they lend on all property types, such as condos/townhomes and multi-unit investment properties.

It’s possible to get a conforming loan backed by Fannie Mae or Freddie Mac, or a jumbo home loan that exceeds the conforming loan limit.

They also offer FHA loans and VA loans, though these options may only be available for existing homeowners refinancing a home loan.

In terms of specific loan programs, you can get a fixed-rate mortgage in a variety of different lengths, from 10 years to 30 years and everything in between.

They also offer adjustable-rate mortgages, including 3/1, 5/1, 7/1, and 10/1 options.

All in all, they should have a product for most borrowers out there. The only major loan type missing appears to be USDA loans.

Agora Lending Mortgage Rates

One positive to Agora Lending is the fact that mortgage rates are front and center on their website.

Instead of wondering how competitive they, simply cruise over to their website and you’ll see today’s refinance and purchase rates.

No need to sign in or get in touch with a human first. From what I saw, their mortgage rates appeared to be pretty low, slightly below what big banks were advertising on the same day.

Of course, be sure to pay attention to the many loan assumptions in the fine print, such as required down payment, minimum credit score, max loan amount, and so forth.

And take them with a grain of salt because once your loan scenario is presented, rates could be very different. But this is the case with any lender that advertises generic rates.

Ultimately, I give them bonus points for being transparent, as many lenders do not display their mortgage rates online or elsewhere.

That being said, I can’t find anything about lender fees on their website, so it’s unclear if they charge a loan origination fee or other standard fees like processing and underwriting fees.

Be sure to inquire about both lender fees and interest rates when comparison shopping to get the complete picture.

Collectively, this is known as the mortgage APR and is very important to ensure you get an apples-to-apples assessment.

Agora Lending Reviews

On Zillow, Agora Lending has a favorable 4.61-star rating out of 5 from just over 300 customer reviews.

A good number of the reviews indicated that either the interest rate or fees/closing costs were lower than expected. And in some cases both.

Over at Bankrate, the company has a slightly higher 4.7-star rating from about 40 reviews, with most of them perfect 5-star reviews.

And 95% of those who reviewed the company said they would recommend them, which is a great sign.

Additionally, they have a strong 4.5-star rating on LendingTree (and 88% recommend rate), though it’s from a smaller sample size of around 20 reviews.

They have a less favorable 3.2-star rating out of 5 on Credit Karma from just over 50 reviews, with service an issue despite the low rates on offer.

Lastly, they have a ‘C+’ Better Business Bureau rating, which isn’t great. They also aren’t an accredited business, but their parent company has an ‘A+’ rating.

All in all, while Agora Lending has some mixed reviews, many former customers cite their low rates, which could be worth some of the aggravation on the customer satisfaction front.

As such, they may be well-suited for an existing homeowner with a straightforward loan scenario that is seeking a lower mortgage rate.

Agora Lending Pros and Cons

The Good

  • Offer a digital home loan process
  • Can apply for a mortgage online via their website
  • They display their daily mortgage rates online
  • Lots of loan programs to choose from
  • Licensed in all 50 states and D.C.
  • Have mostly good customer reviews

The Maybe Not

  • Do not offer USDA loans
  • Do not service their loans
  • Currently have a C+ BBB rating

Source: thetruthaboutmortgage.com

Apache is functioning normally

Today we’ll check out a large-scale mortgage broker by the name of Sunnyhill Financial that’s looking to start a “Doc Less Revolution.”

By that, they mean make it easier for folks to apply for a home loan without having to track down lots of paperwork, scan/upload it, fax it, etc.

Yes, all those things are still verified to ensure you’re a creditworthy borrower (it’s not 2006!).

But it’s done so in a more efficient manner (using the latest technology) so you can spend less time getting a mortgage, and more time enjoying that new low rate.

Sunnyhill Financial Fast Facts

  • Independent mortgage brokerage
  • Offers home purchase loans and refinances via it wholesale partners
  • Founded in 2018, headquartered in San Francisco, California
  • Currently licensed to do business in 10 states nationwide
  • Provides a digital home loan experience to their customers

Sunnyhill Financial is an independent mortgage broker, which means they connect consumers to wholesale mortgage lender partners.

This gives them the advantage of shopping your loan scenario on your behalf so you don’t have to.

For those who don’t like to comparison shop, or simply don’t have the time, a broker can accomplish the shopping piece for you by checking out rates from their partners, then presenting you with the best offer.

Aside from saving you time, it could also save you money if they match you with a lender that offers lower mortgage rates and reduced lender fees.

The San Francisco, California-based company seems to be pretty young, having been founded as recently as 2018. But says it has over 50 years of combined mortgage experience.

Currently, they’re licensed to do business in 10 states, including Arizona, California, Colorado, Florida, Georgia, Michigan, Ohio, Oregon, Texas, and Utah.

They plan to roll out to additional states soon, including Maryland, Nevada, North Carolina, Pennsylvania, South Carolina, Tennessee, and Washington.

So they should have a lot more coverage in the near future, with licensing in about half the country.

How to Apply with Sunnyhill Financial

  • They offer a digital mortgage application powered by Blink
  • Allows you to verify income, assets, and employment electronically
  • You can also eSign disclosures and other necessary documents
  • And potentially fund your loan via a virtual e-closing from the comfort of your home

As noted, the company say its starting a “Doc Less Revolution,” and instead of asking you to gather documents, they automatically verify income, assets, and tax returns for you.

This is possible thanks to Single Source Validation, which lets you use login credentials to access things like pay stubs and bank statements that are then automatically imported into your application.

And you won’t have to sign any necessary paperwork with a pen and then scan it back – they let you eSign documents and disclosures so you can speed through the process, no matter where you happen to be.

To get started, simply visit their website and click on “Apply Now” to create an online account and begin the process.

Their digital mortgage app seems to be powered by Blink, which is provided by United Wholesale Mortgage, the largest wholesale lender in the country.

Alternatively, you can request a personalized mortgage rate quote via their website first, or simply call them up to get connected with one of their loan officers.

Once your loan is submitted, you’ll be able to track status via the online borrower portal, and receive updates as your loan progresses to the next step.

Aside from it being easy and convenient, Sunnyhill Financial aims to close loans super-fast thanks to the use of the latest technology.

So if you’re the type that likes to do things remotely, potentially from a smartphone, this company might be for you.

Of course, you can still get in touch with a loan officer and loan processor along the way if and when questions arise.

Loan Programs Available at Sunnyhill Financial

  • Home purchase loans
  • Refinance loans: rate/term, cash out, and streamline
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo home loans
  • Government-backed loans: FHA and VA
  • Fixed-rate mortgages: 10, 15, 20, and 30-year loan terms
  • Adjustable-rate mortgages: 5/1, 7/1, and 10/1 ARMs

Sunnyhill Financial provides the majority of the most popular loan programs available, including conforming loans, jumbo loans, FHA loans, and VA loans.

The only major loan type missing seems to be USDA loans, along with second mortgages, such as HELOCs.

However, they lend on all property types, including single-family homes, condos, and multi-unit properties, and offer financing on second homes along with investment properties.

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

Both fixed-rate and adjustable-rate mortgage options are available in a variety of different loan terms.

Sunnyhill Financial Mortgage Rates

One slight downside to Sunnyhill Financial is the fact that they don’t publicize mortgage rates or lender fees on their website.

Of course, because they operate as a mortgage broker it means they have access to rates from all their wholesale lending partners.

As such, they can scour all their partner’s rate sheets and provide you with the most competitive rate quotes.

I believe they are approved to work with United Wholesale Mortgage (UWM), so those looking to work with that company might be able to via Sunnyhill Financial.

One hint we have about rates comes from their participation in the Bankrate mortgage comparison tables. From what I saw, their rates were pretty low relative to other lenders listed.

More importantly, they offered some of the lowest mortgage APRs on the platform, which is a more important figure that factors in lender fees including discount points.

You also might be able to haggle with them if you don’t like what you hear the first time around since they can shop your loan with multiple lenders.

In terms of lender fees, they don’t mention them on their own website but I did see a flat $999 underwriting fee via their Bankrate listing.

Be sure to inquire about both rates and fees to get the best deal on your home loan.

Sunnyhill Financial Reviews

On Google, Sunnyhill Financial has a perfect 5-star rating out of 5 from just over 200 customer reviews. Both professionalism and responsiveness seem to stand out as keywords.

Over at Bankrate, the company also has a perfect 5-star rating from about 150 reviews, with 100% of reviewers saying they’d recommend them.

They’ve also got a 5-star rating on Zillow, albeit from a much smaller number of reviews (about 30 at last glance).

But most of the reviews on Zillow indicate that the interest rate was lower than expected, which is a good sign on the pricing front.

All in all, it’s pretty impressive to see perfect ratings across several major review sites – hopefully this means they consistently make their customers happy, regardless of their loan specifics.

In summary, Sunnyhill Financial seems to be excelling in customer satisfaction, perhaps thanks to their digital loan process and hopefully their low mortgage rates.

They could be a good fit for both a new home buyer or an existing homeowner looking to refinance in order to save money and/or pull cash out of their home.

The one downside might be that you’ll need to work remotely, which for some might not be a good fit if looking for a more hands-on approach.

Sunnyhill Financial Pros and Cons

The Good

  • Offer a digital home loan process
  • Can apply from any device in a matter of minutes
  • They’re able to shop your rate with multiple lenders because they are a broker
  • Plenty of loan programs to choose from
  • Offer virtual e-closings (sign from anywhere)
  • Perfect customer reviews across major ratings sites

The Not

  • Only licensed in a handful of states currently
  • No physical locations
  • No mention of rates or lender fees
  • Do not offer USDA loans or second mortgages
  • Do not service loans

(photo: Tambako The Jaguar)

Source: thetruthaboutmortgage.com