mortgage lender

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Today we’ll check out newcomer “Revolution Mortgage,” which is looking to shake up the home loan business by creating a “collaborative and meaningful consumer lending experience.”

Their ultimate goal is to become the most consumer-friendly brand in the mortgage space, something they believe can be achieved by being authentic, kind, different, relevant, and simply doing the right thing.

So far, their customer reviews have been stellar, which tells me they’re doing something right and could be well on their way to reaching that ambitious goal of theirs.

Revolution Mortgage Fast Facts

  • Direct mortgage lender that offers home purchase loans and refinances
  • A DBA of parent company T2 Financial, LLC
  • Founded in 2019, headquartered in Westerville, Ohio
  • Has 33 branch locations nationwide and employs nearly 200 loan officers
  • Goal is to be the most consumer-friendly mortgage brand in the country

Revolution Mortgage is a direct-to-consumer retail mortgage lender, which means they work with borrowers directly both in-person at branches and remotely online.

They offer home purchase loans and refinance loans, with the former probably their specialty as HMDA data shows their parent company T2 Financial, LLC had a 75% purchase loan share in 2019.

But they also offer rate and term refinances and cash out refinances to existing homeowners, so they’re happy to serve both first-timers and long-time homeowners.

At the moment, Revolution Mortgage is licensed in 20 states, including Arizona, California, Colorado, Florida, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin.

The company also has 33 physical locations sprinkled across the United States, with some branches as far west as Colorado. So if you like to do business in-person, they could be a good fit.

How to Apply with Revolution Mortgage

  • You can apply online, over the phone, via their smartphone app, or even at a branch
  • They offer a digital mortgage application that lets you complete most tasks electronically
  • Borrowers can securely scan/upload documents and eSign disclosures from a smartphone device
  • And message their loan officer instantly whenever they have questions or want status updates

One plus to using Revolution Mortgage is the ability to apply for a mortgage in just about every way imaginable.

It’s possible to start your application online on your own, via their mobile app, over the phone, or in-person. So no matter your approach, there’s an option that will fit your unique personality.

To get started, you can visit their website and click on Apply, at which point you’ll be prompted to fill out a short lead form with your contact information.

Alternatively, you can call them directly or browse their online loan officer directory to find someone specific to work with.

Once you do, it’s possible to apply directly from their website, or you can download their free smartphone app and go about it that way.

Those who dare can also visit a local Revolution Mortgage branch and apply for a mortgage in-person.

Regardless of how you apply, you’ll be able to manage your loan via the online borrower portal or the app, and perform most tasks paperlessly.

You can also message your loan officer instantly whenever you have questions, and opt in to status updates to stay on top of your loan progress.

To sum it up, you have pretty much every option under the sun to apply, and you get to take advantage of the latest mortgage technology available.

Loan Programs Available at Revolution Mortgage

  • Home purchase loans
  • Refinance loans: rate and term and cash out
  • Home renovation loans
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate mortgages and ARMs available in a variety of loan terms

While Revolution Mortgage doesn’t appear to have any unique loan programs, they do seem to have all the basic offerings most borrowers seek.

This includes home purchase loans, refinance loans, and home renovation loans, which are available on all major property types and occupancy types.

You can get a conforming loan backed by Fannie/Freddie, or a jumbo home loan if your loan amount exceeds your county’s limit.

Additionally, they offer the full slate of government loan options, including FHA, VA, and USDA loans, which means it’s possible to get mortgage with no money down.

And while most borrowers will go with a 30-year fixed mortgage, they also offer the 15-year fixed and adjustable-rate mortgages such as the 7/1 ARM.

Ultimately, you should be able to find what you’re looking for unless you have a very unique loan scenario.

Revolution Mortgage Rates

One slight negative to Revolution Mortgage is the fact that they don’t publicize their mortgage interest rates on their website.

Some lenders do, some don’t, but it’s always nice to get a taste for pricing, even if it’s merely just a sample.

While they say they leverage technology to boost efficiencies and provide you with a lower rate, it’s unclear how low, and more importantly, how competitive it is compared to other lenders out there.

The only hint we have comes via Bankrate, where Revolution Mortgage tends to advertise its rates to the public.

At last glance, they had some of the lowest interest rate and mortgage point combinations on the platform, so they appear to be competitively priced.

Of course, loan scenarios can vary so you’ll need to get in touch with a Revolution Mortgage loan officer to obtain pricing first.

But from what I saw, the pricing is at least encouraging, and if the customer service is also stellar, it could be a good combo.

Lastly, be sure to inquire about lender fees to determine if they charge a loan origination fee, or fees for tasks like loan processing or underwriting.

Once you know all those details, you can effectively shop your loan by using the mortgage APR.

Revolution Mortgage Reviews

On Zillow, Revolution Mortgage has a very impressive 4.95-star rating out of a possible 5 from over 300 customer reviews, which is as close to perfection as you can get.

Many of the reviews indicated that both the interest rate and fees/closing costs were lower than expected, a good sign for those looking for a competitively-priced home loan.

Over at Google, they have a 4.7-star rating from about 270 reviews, and on Bankrate a 4.5-star rating from about 40 reviews.

They also have a perfect 5-star rating on LendingTree, albeit from just under 20 reviews. They also boast a 100% recommended score on LendingTree.

Lastly, they are an accredited business with the Better Business Bureau and currently have an ‘A’ rating based on customer complaint history.

In summary, Revolution Mortgage appears to be living up to their pledge to be the most consumer-friendly brand in the mortgage space, and if they also offer low rates, they could be a great choice for your home loan needs.

They provide a ton of different ways to apply, whether it’s online, in-person, or via their free smartphone app, so they should have an approach to suit all personality types.

Revolution Mortgage Pros and Cons

The Good Stuff

  • Offer a digital mortgage application process
  • Can apply in a variety of different ways including in-person
  • Lots of different home loan program to choose from
  • Excellent customer reviews across all ratings websites
  • An accredited business with an ‘A’ BBB rating
  • 33 physical branch locations throughout the country
  • Free smartphone app

The Maybe Not

  • Only licensed in 20 states currently
  • Do not publicize mortgage rates or lender fees
  • May not service your loan after closing

(photo: mario)

Source: thetruthaboutmortgage.com

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Roughly 68 percent of Americans think its a good time to buy a home, down from 70 percent in June, according to the third quarter 2010 Fannie Mae National Housing Survey.

Meanwhile, 29 percent think its a bad time to buy, up from 26 percent in the previous survey.

And an overwhelming 85 percent think its a bad time to sell a home, up from 83 percent a quarter earlier.

Less Optimism About Home Prices

Just one-quarter of respondents believe home prices will rise in the next 12 months, down from 31 percent in June, while 22 percent expect home prices to fall, up from 18 percent a quarter earlier.

But Americans think rental prices will rise more than home prices, and for the first time since January, delinquent borrowers say they are more likely to rent than buy their next home.

Those who said they would buy have declined by 11 percentage points, while those who say they would rent increased 10 percentage points from January’s levels.

That spells opportunity for those buying investment properties, a trend that could diminish the impact of the shadow inventory overhang.

More Homeowners Aware of Mortgage Problems

Interestingly, 48 percent of Americans (63 percent of delinquent borrowers and 58 percent of underwater borrowers) know someone who has defaulted on their mortgage, up three, seven, and 10 percentage points since June, respectively.

And delinquent borrowers are nearly three times more likely to have considered stopping their mortgage payments completely if they know someone who has defaulted on their mortgage.

But 55 percent of underwater borrowers, 51 percent of all mortgage borrowers, and 43 percent of delinquent borrowers (up 11, 6, and 6 percentage points since January, respectively) think their mortgage lender would pursue other assets beyond their home if they defaulted on their mortgage.

Source: thetruthaboutmortgage.com

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LendingHome, a marketplace lender that claims it’s “the best way for borrowers to get a mortgage,” announced this week that it funded more than $550 million in mortgage loans during 2015.

That represents a 600% increase from 2014 as marketplace lending continues to surge in popularity.

If you’re wondering just what the heck marketplace lending is, it’s essentially a setup where individuals obtain and invest in mortgages at the same time.

LendingHome refers to themselves as a “direct lender with a marketplace of investors who buy our loans.” They close the loans with their own funds and then offer them to investors via a secondary sale.

So Joe Investor backs a mortgage (via a fractional note) taken out by Jane Homeowner after LendingHome funds it.  Institutional investors are also involved in the process.

To that end, some $200 million in principal and $20 million in interest has been doled out to investors in LendingHome mortgages.

LendingHome Mortgage Products: Fix & Flip or Primary Residence

If you’re a borrower seeking a mortgage, you have the ability to choose from either a “fix & flip” product or a standard owner-occupied mortgage.

Let’s talk about the first option first. Assuming you’re an investor, you get the ability to apply for a purchase or refinance loan on a rental property.

LendingHome will ask you a series of questions online about the property, including whether you’ve found it yet, and if an offer has been made.

As far as the loan goes, you have the ability to add rehab funds on top of the desired loan amount if you need to finance improvements before unloading it again. The loan term appears to be set at 12 months because it’s basically a bridge loan.

They ask the typical questions such as property value, loan-to-value, your estimated credit score, and your real estate experience. Specifically, they ask how many properties you’ve purchased in the past six and 12 months, the number you’ve purchased in your lifetime, and the average purchase price.

The product is available in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Maryland, Michigan, Missouri, North Carolina, Nevada, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, and West Virginia at last glance.

LendingHome Rates Appear to Be Favorable

If you want to take out a mortgage on a primary residence you intend to occupy, it appears you can only do so in Nevada and Oregon at the moment, though I’m sure that list will grow soon enough.

I did a mock application to see what kind of rates you can get and they weren’t bad at all. For a 30-year fixed, the rate was advertised at 3.5% with no mortgage points. For a 15-year fixed, the rate was 2.75%, and for a 5/1 ARM it was 2.625%.

LendingHome’s rate estimates assume a $750 origination fee and a $400 escrow fee plus 0.07% of the loan amount. There’s also a smaller application fee.

For the record, I geared the quote toward a pristine borrower with excellent credit and a sizable down payment. When I inputted a 600 credit score it was deemed too low for financing.

However, a 620 credit score got me back in the game and rates were still low, with the 15-year fixed unchanged at 2.75% and the 30-year fixed a slightly higher 3.875%.

So a borrower with a low credit score may benefit from their forgiving pricing structure.

LendingHome aims to be speedy, with a three-minute rate quote, a 20-minute full application, and a closing date in just 10-14 days. In fact, they aim to close all loans in less than 2 weeks. That’s pretty fast!

The process is also done 100% online, with questions answered via online forms and documents uploaded via their website. You can also keep track of your loan progress via their customer portal and contact a human if you so wish.

If anything changes along the way, they may need to adjust your rate, but they’ll let you know if and when that happens.

For those who wind up getting denied, the company claims it will work with you to provide a creative counter-offer if at all possible.

Becoming a LendingHome Investor

If you want to invest in LendingHome mortgages, you need to be an accredited investor. This typically requires a six-figure income and assets north of $1 million. If that sounds like you, there’s an option to earn a healthy yield on mortgages.

Assuming you choose to invest, LendingHome’s marketplace requires a minimum opening balance of $50,000, with a minimum investment of $5,000. When you invest in one of the company’s mortgages, you can earn a “yield upwards of 10 percent on average.”

The company differentiates itself from other FinTech platforms by allowing investors to put their money behind secured loans backed by real estate, as opposed to unsecured loans offered through competing marketplace lenders like SoFi.

Once you choose a mortgage to invest in, you’ll receive a monthly payout of principal and interest when the borrower on the loan makes a payment.

And because you’re taking a fractional interest, you can diversify your mortgage holdings so you don’t just wind up with one sour loan.

Your money is basically locked up until the loan matures, which could be earlier than the actual loan term if the mortgage is prepaid.

Should You Apply for a Mortgage at LendingHome?

All in all, it appears that LendingHome is targeting a niche market that has either been shunned by traditional mortgage lenders, or simply doesn’t want to deal with them because of the many restrictions investors with lots of properties face.

While I don’t know what the mortgage rates are for the fix & flip loans, my assumption is that they’re going to be significantly higher than what you’d find with a conventional mortgage lender. I’ve heard something about rates being closer to say 7-10%, as opposed to the 6% rate you’d find on a traditional 30-year fixed issued by a large national bank, credit union, or mortgage banker.

However, companies like LendingHome (and Sindeo or Lenda) may offer more flexibility than the big mortgage players, which is probably why a borrower would seek them out in the first place.

As noted, their rates on owner-occupied loans are quite competitive, though they only appear to be offered in two states at the moment. You may also be able to gain approval even if the loan doesn’t fit the Qualified Mortgage rule.

What’s great is how simple the process appears to be. Their automated system even recognizes and removes documentation requirements that a traditional mortgage provider would ask for but isn’t needed for your loan. They’re all about speed and convenience, something Millennials seem to be pretty fond of.

If they can compete on price and keep closing costs low (via technology), they should be a viable alternative to the standard big bank approach, even if you’re a vanilla borrower.

On December 8th, 2016, LendingHome announced that it had surpassed $1 billion in mortgage loan originations.

In late August 2018, the company said it had surpassed $3 billion in origination volume, with the third billion lent out in a mere eight months, 33% quicker than the time it took to dole out the second billion and some 375% quicker than it took to originate the first billion in home loans.

So I guess they’re growing…

Source: thetruthaboutmortgage.com

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The SEC has sued three top executives from former mortgage lender Indymac, claiming the trio defrauded investors by misrepresenting the company’s finances leading up to the mortgage crisis.

Federal complaints allege that the Pasadena, California-based lender sold $100 million in new stock while masking it’s inevitable decline from investors.

“These corporate executives made false and misleading disclosures about IndyMac at a time when the company’s financial condition was rapidly deteriorating,” said Lorin L. Reisner, Deputy Director of the SEC’s Division of Enforcement, in a release on the SEC’s website.

“Truthful and accurate disclosure to investors is particularly critical during a time of crisis, and the federal securities laws do not become optional when the news is negative.”

Specifically, the three execs failed to tell investors that the company had begun raising capital to protect its capital and liquidity positions, or that many of the loans it sold sold as mortgage-backed securities contained borrower misrepresentations (stated income loans).

One suit involves former Indymac CEO Michael Perry and CFO A. Scott Keys, while another complaint targets former CFO S. Blair Abernathy.

Abernathy settled without admission or denial of the claims, agreeing to pay roughly $125,000 in penalties.

Perry and Keys face similar penalties, along with permanent injunctive relief, an officer and director bar.

The Office of Thrift Supervision closed Indymac on July 11, 2008 and placed it under FDIC receivership, renaming it Indymac Federal, before it was eventually sold to investors and re-branded as OneWest Bank.

OneWest Bank looks like an Indymac in the making, with advertisements for jumbo mortgages sprouting up all around Los Angeles.

Kind of like PennyMac, whose team consists of 10 former Countrywide employees, which began originating mortgages recently as well.

Source: thetruthaboutmortgage.com

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8 min

For years after the Great Recession, mortgage interest rates hovered at historically low levels, and home buyers became accustomed to borrowing at less than 4 percent — and sometimes less than 3 percent. But in spring 2022, rates began to rise, and once they hit 6 or even 7 percent, buyers stepped up the search for ways to reduce them.

“Buy-downs,” which reduce mortgage interest in exchange for upfront fees, quickly became popular for buyers, especially when sellers were willing to pay the upfront fees as an incentive to buyers in a slower market.

We asked Isabel Barrow, a certified financial planner with Edelman Financial Engines in Alexandria, Va., and Dan Hanson, executive director in market retail at loanDepot in Corona del Mar, Calif., for their insights into how a mortgage buy-down works and when it might be a good option. Text has been edited for clarity and space.

Q: What is a buy-down?

Hanson: Rate buy-downs allow home buyers to reduce the interest rates on a mortgage by paying points upfront. There are two types — temporary and permanent. Temporary buy-downs offer you lower interest rates for an annual predetermined period such as one, two or three years. A permanent buy-down reduces your interest rate for the full term of the loan.

Q: How does a temporary buy-down work?

Hanson: A “3-2-1” buy-down for a $400,000 mortgage at 6 percent costs approximately $18,000. Your first-year rate would be 3 percent [or down three points], second year 4 percent [down two points], third year 5 percent [down one point], and the fourth year through the remainder of your mortgage would return to 6 percent. You would save $732 per month the first year, $502 monthly the second year and $257 per month the third year.

Temporary buy-downs can be paid by the buyer, seller or a third party such as a lender. Historically, builders have paid for buy-downs as a tool for selling new construction homes, and they have been gaining popularity for sellers as the resale market continues to soften.

Costs for a temporary buy-down vary based on market conditions and the type of buy-down. Typically, one point will cost one percent of the loan amount, so if your loan is $400,000, one point would cost $4,000. For “1-0” buy-downs, you’re buying one point for one year, for “2-1” buy-downs you’re buying three points and for “3-2-1” buy-downs you’d typically buy six points. Temporary buy-downs tend to be much cheaper than a permanent buy-down.

For temporary buy-downs, you must qualify for the loan at the permanent [or final] rate of the mortgage [after the buy-down ends].

Q: How does a permanent buy-down work?

Hanson: A permanent buy-down lowers the interest rate for the entire life of the loan, so you qualify based on the final rate. Permanent buy-downs, which are available on most loans, are typically paid by the borrower, though sometimes home builders will contribute. A home buyer pays a certain number of “points” upfront to pay a lower interest rate over the life of the loan. Typically, home buyers will pay one point for a 0.25 percent reduction in their rate, but this varies based on interest rates and market conditions.

For example, on a $400,000 loan with a 7.375 percent rate, your monthly principal and interest payment would be $2,763. For approximately $8,000, you could lower your rate to 6.5 percent and save $234 per month for the entire loan term. Your $8,000 payment would be recouped in 2.7 years based on the monthly savings.

Q: What circumstances make a buy-down a good decision for a buyer?

Barrow: If you’re planning to be in the home for the long term and it’s a permanent buy-down, this can be a good decision. The longer you plan to stay in the home, the better the chances are that buying down the mortgage is financially beneficial. However, if you expect interest rates to go down in the future, you may not need a buy-down, as you’ll have the option to refinance instead down the road.

To know if a buy-down makes sense, you need to determine your break-even point, which is how long you have to hold the loan to make it worth it to pay these points. For example, if the lower rate saves you $100 per month and the cost to buy down the loan is $1,200, your break-even is one year. If you hold the loan for longer than a year, you save $100 per month for the remainder of the loan term. In this example, buying down the rate makes sense if you plan to be in the home for more than a year.

To manage the risk that rates don’t go down and you can’t refinance, a mortgage rate buy-down might be smart in terms of overall savings for the life of the loan.

Hanson: Seller- and third-party-paid temporary buy-downs can provide you with more buying power. You also get an added level of comfort knowing you’ll have more cash available in your monthly budget to cover typical expenses and some of the costs that come with owning a new home, such as new furniture and unexpected repairs.

A temporary buy-down may also make sense if you expect your income to increase over time. The buy-down allows you to pay a lower interest rate to start, then you’ll be able to afford the higher rates since your income will rise as your loan adjusts.

With a permanent buy-down, you should think about how long it will take to get to the break-even point and ask yourself if you’d rather have less cash in the bank now and a lower monthly payment or more cash in the bank and a higher payment.

Q: What are the pros and cons of a temporary rate buy-down vs. a permanent buy-down?

Barrow: With a temporary buy-down, you’re really just paying upfront in exchange for a lower payment for a couple of years. In most cases this doesn’t make sense, unless the buy-down is paid by the builder or the seller, which is more apt to happen in a buyer’s market. If you expect your income to go up during the buy-down phase, then this may make sense. My concern would be that you get into a home that you can afford initially, but once the buy-down period is over, you may be in a situation where your monthly payment is more than you can comfortably afford.

A permanent buy-down makes more sense if you plan to be in the home for a long time or you expect interest rates to stay high for the foreseeable future, meaning you won’t have an opportunity to refinance to a lower rate anytime soon.

Q: What are the downsides to a buy-down?

Barrow: The primary downside to a buy-down is the upfront cost and the lost opportunity cost. For example, if you spend $20,000 upfront to buy down your loan, what risks are you taking? What would that same $20,000 be doing if otherwise invested, and not paid upfront to the mortgage lender? Would you be investing that money for the long term, and could it earn more over the long term than you’re saving in rate adjustment? What if interest rates go lower in the future and you decide to refinance? Was it worth it to pay for the lower rate upfront when you may end up with an even lower rate option in the future?

Q: How does a buy-down compare with other options, such as making a bigger down payment or getting an adjustable-rate mortgage?

Barrow: Making a bigger down payment, especially if you can get to 20 percent, can help bring your rate down since many lenders will use that benchmark to determine your rate. You’ll also avoid paying private mortgage insurance with a 20 percent down payment. Additionally, a larger down payment has the net effect of a smaller monthly payment and less interest over the life of the loan. However, given the 30-year time, this may feel like a smaller benefit in the beginning, as it takes 30 years to feel the full benefit of the savings.

Another tempting option for buyers is an adjustable-rate mortgage (ARM). Typically, an ARM has a lower rate than the average 30-year loan for an initial period, typically three, five or seven years, and will then fluctuate with the going rate. The problem with an ARM is that typically when the rate goes up, this makes the monthly payment jump up, sometimes dramatically.

While this option may be interesting for someone with a shorter time frame in the home, I would argue buying is too costly if you plan to own for only a short period of time. And if you plan to refinance before the rate jumps up after the term, what if rates are higher than they are now? Interest rate changes are notoriously hard to predict in the short term, much less the long term. Taking that much risk on something as important as your home is likely too much for most buyers.

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Source: washingtonpost.com

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Wells Fargo announced today that former Wachovia Pick-A-Payment mortgage customers in California may be eligible to receive principal balance reductions for making on-time mortgage payments as part of an agreement reached with State AG Jerry Brown.

From December 20, 2010 through June 30, 2013, the total amount of relief for option arm customers could reach as much as $2.4 billion, depending on economic and individual borrower circumstances.

The bank and mortgage lender will contact customers likely to be approved for the new program via postal mail – homeowners who already received loan modifications are not eligible.

Customers can also contact the company at 888-565-1422 for more information regarding the program.

“The majority of Wachovia’s Pick-a-Payment customers reside in California,” said Mike Heid, co-president of Wells Fargo Home Mortgage, in a release.

“We’re pleased that going forward the attorney general’s office will assist with outreach, so that we can continue to work with as many customers as possible on the options available to them to prevent foreclosures.”

Wells Fargo will also contribute $33 million to the state of California to provide for customer outreach, and to prevent or lessen the impact of foreclosures in California communities.

From January 2009 through November 2010, Wells provided mortgage payment relief to more than 50,000 at-risk Wachovia Pick-a-Payment customers in the Golden State.

The modifications included mortgage rate reductions, term extensions, forgiveness on tax and insurances advances, and more than $2.9 billion in principal forgiveness.

Nine other states have already made similar arrangements with Wells Fargo, including Arizona, Colorado, Kansas, Florida, Illinois, Nevada, New Jersey, Texas and Washington.

Pick-A-Payment loans, or option arms mortgages, allow for negative amortization up to 125 percent loan-to-value, meaning many of these borrowers are now in negative equity positions, thanks in part to the steep decline in home prices.

Source: thetruthaboutmortgage.com

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How to find the best mortgage rate in New Jersey for you

When shopping for a mortgage, compare at least three loan offers — research shows this exercise can save you thousands of dollars over the life of a loan.

Bankrate can help you find the best mortgage deal. Here are some basic steps to securing a loan with favorable terms:

Step 1: Strengthen your credit score

Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.

Step 2: Determine your budget

To find the right mortgage, you’ll need a good handle on how much house you can afford. That’s because a lender could qualify you for more mortgage than you need, or one that would max out your budget and leave no room for unexpected expenses.

Step 3: Know your mortgage options

There are a few different types of mortgages. Many lenders offer conventional loans that require as little as 3 percent down. FHA loans also have a low down payment threshold, while VA loans (for veterans) and USDA loans (for borrowers in rural areas) have no down payment requirement. If you’re in the market for a jumbo loan, check New Jersey’s county-by-county loan limits.

Step 4: Compare rates and terms from several lenders

Don’t settle on the first lender you talk to — rate-shop with at least three different banks or mortgage companies. You can look to your bank or other banks, credit unions, online lenders and local independents to ensure you’re getting the best deal on rates, fees and terms.

Step 5: Get preapproved for a mortgage

As you comparison-shop, keep in mind that getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Source: thesimpledollar.com

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Today we’ll check out East Coast mortgage lender “Garden State Home Loans,” which says it has some of the lowest mortgage rates and most competitive fees in the industry.

They’re able to offer more attractively priced mortgages to their customers because they operate mostly online, meaning low overhead and a streamlined operation.

And their thousands of customer reviews appear to back that up, with excellent marks across all the major ratings websites.

Let’s learn more about them.

Garden State Home Loans Fast Facts

  • Mortgage broker that offers home purchase loans and refinances
  • Founded in 2011, headquartered in Cherry Hill, New Jersey
  • Licensed to do business in six states on the East Coast
  • Has funded more than $4 billion in home loans since inception
  • Aims to close most loans in 30 days or less (21.3-day average turn time currently)

Garden State Home Loans is a mortgage broker located in Cherry Hill, NJ that offers home purchase financing and mortgage refinances.

As a broker, they can shop your loan on your behalf with their wholesale lender partners to find the best pricing and most flexible programs available.

At the moment, the company is licensed in just six states, including Connecticut, Florida, Maryland, Michigan, New Jersey, and Pennsylvania.

Since inception, the company has originated more than $4 billion in home loans and says it’s able to fund loans very quickly, with an average turn time of just 21.3 days from submission to closing.

How to Apply with Garden State Home Loans

  • You can call, chat online, or visit their main office in Cherry Hill, NJ
  • They offer a digital mortgage experience powered by Blink
  • Allows you to run credit, eSign documents, and verify your income and assets
  • Online portal allows you to see exactly where you are in the loan process

To get started, you can call, chat online, visit their physical office if in New Jersey, or fill out a short lead form on their website.

They also have an online loan officer directory where you can see who works at the company and get in touch if you want to work with someone specific.

Once you do any of those things, you’ll be connected with a knowledgeable loan originator who will go over pricing and eligibility.

Assuming you like what you hear, you can apply for a home loan entirely online using their digital mortgage application powered by Blink.

It allows you to run credit, eSign documents, scan/upload paperwork, verify your income and assets by sharing your credentials, and track the status of your loan from start to finish via the online portal.

They’re also big on being available, with hours of 9am to 9pm EST, seven days a week. So even if you need help after hours, or on the weekend, they should be there to assist.

Loan Programs Offered by Garden State Home Loans

  • Home purchase loans
  • Refinance loans: Rate and term, cash out, and streamline
  • Home renovation loans: FHA 203k and Fannie Mae HomeStyle
  • Delayed Financing
  • Mortgages for self-employed borrowers
  • Reverse mortgages
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate and adjustable-rate mortgages in a variety of loan terms

One advantage to using Garden State Home Loans is their massive lending menu. They offer just about any home loan program you could possibly ask for.

Whether you need a home purchase loan, renovation loan, a refinance of any kind, or even a reverse mortgage.

They lend on all property types, including single-family homes, condos/townhomes, multi-unit investment properties, second homes, and more.

In terms of minimum credit scores, they have limited products for FICO scores down to 580, and that you’ll need at least a score of 640 FICO score for the majority of their loan programs.

But they also cater to self-employed borrowers and those who have experienced a recent credit event such as a foreclosure or bankruptcy.

Additionally, you can take advantage of the Delayed Financing program if you buy a home with cash and want to pull out some of your equity quickly thereafter.

You can get anything from a conforming loan backed by Fannie Mae or Freddie Mac to a jumbo loan or a government-backed loan, including FHA/VA/USDA options.

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

Simply put, you shouldn’t be limited when it comes to loan choice with Garden State as they seem to offer just about everything.

The only thing they might not have would be second mortgages.

Garden State Home Loans Mortgage Rates

While they say they’re big on transparency, you’ll need to get in touch with a loan originator first to see their mortgage rates.

You won’t find them displayed on their website, though they might appear on third-party mortgage comparison websites like Bankrate.

To request a rate from Garden State Home Loans, you can either fill out a short form on their website with your contact details, or simply call them up.

While they don’t publicize their rates, they do seem to have good feedback regarding pricing from their many reviews, so it could be quite favorable.

With regard to lender fees, they aren’t listed on their website either, so be sure to ask about them as well when getting pricing.

From what I saw, they might charge a $295 loan origination fee and a $1,055 underwriting fee.

It’s important to consider both the interest rate and fees to get the complete picture, then you can shop their mortgage APR with other lenders to see where they stand.

They’ll likely be able to structure your mortgage as a no cost loan either way if you want to limit or completely eliminate your out-of-pocket expenses.

Garden State Home Loans Reviews

On Zillow, Garden State Home Loans has a near-perfect 4.97-star rating out of 5 from about 1,000 customer reviews.

Aside from being almost flawless, lots of their reviews indicate that both the interest rate and closing costs were lower than anticipated, which is a good sign on the pricing front.

Be sure to check out individual loan officer reviews on Zillow if you want to work with someone super top notch (then find them via the loan officer directory on the Garden State Home Loans website).

They also have a 5-star rating on Bankrate from more than 300 customer reviews, with 99% of reviewers saying they’d recommend the company to others.

Over at Google, they have a very impressive 4.9-star rating from more than 1,000 customer reviews, which is even more meaningful given the large sample size.

Lastly, they are an accredited business with the Better Business Bureau (since 2012) and have an ‘A+’ rating based on customer complaint history.

In summary, they are scoring very high marks in customer satisfaction and have a ton of loan programs to choose from. They also claim to close loans fast using the latest tech.

This means they could be a good choice for both a new home buyer and an existing homeowner looking to refinance to a lower rate or tap into their home equity.

Garden State Home Loans Pros and Cons

The Good Stuff

  • Can apply for a mortgage directly online without assistance
  • Offer a digital home loan experience powered by Blink
  • Tons of loan programs to choose from
  • Lots of excellent reviews from past customers
  • Appear to offer low mortgage rates
  • A+ BBB rating, accredited company
  • Free mortgage calculators and tutorials on their website

The Maybe Not

  • Only licensed in six states on the East Coast
  • Do not publicize mortgage rates
  • Limited physical locations

(photo: Thomas Seymour)

Source: thetruthaboutmortgage.com