Everything You Need to Know About Guaranteed Rate Mortgages
Table of Contents
- Our Review of Guaranteed Rate Mortgages
- Guaranteed Rate’s Mortgage Process
- Guaranteed Rate’s Pros & Cons
- What States Does Guaranteed Rate Offer Mortgage Services?
- Guaranteed Rate’s Available Mortgage Types & Programs
- Guaranteed Rate’s Mortgage Fees & Rates
- Guaranteed Rate’s Customer Service
- Guaranteed Rate’s Borrower Qualifications & Requirements
- Guaranteed Rate’s Online Reputation
Guaranteed Rate is an online lender that has blossomed into one of the internet’s most prominent mortgage providers. This lender provides a range of home loans and mortgage refinancing options. You can apply for a loan using the company’s website, or you can call a loan officer to walk you through the process (or to answer any questions you might have).
The company initially opened its doors in 2000. It is currently headquartered in Chicago, Illinois.
Our Review of Guaranteed Rate Mortgages
Guaranteed Rate offers a wide array of mortgage and refinancing products. The company is primarily focused on using its online platform to help its clients streamline the application process. To be sure, this lender’s application portal is a tad bit slow to reveal its interest rates. However, there are still plenty of positives associated with the company.
Should you work with Guaranteed Rate to obtain a mortgage or refinance your current home? Let’s explore everything you need to know about this innovative online lender.
Guaranteed Rate’s Mortgage Process
While Guaranteed Rate formerly boasted that it was the only lender that provided an entirely online application, this is no longer the case. There are now a few other lenders that offer similar services. Nonetheless, Guaranteed Rate’s mortgage application process is still quite impressive.
If you want to apply for a mortgage using the Guaranteed Rate platform, head to the company’s website and select the button that says ‘Buy a Home.’ You will be asked about a range of preferences and the type of home loan you’re looking for. You’ll need to enter information about your credit score, zip code, and other basic details.
Eventually, you will be shown some sample rates and loans. It’s at this point that you can decide to apply for a loan. While this process can be slightly annoying, as you don’t see the real rates upfront, it is still miles better than applying for a loan using a traditional application.
The home refinancing application is equally simple. But if you find yourself stumped at any stage of the process, you can always contact the Guaranteed Rate team for assistance. They’re more than happy to help with any application.
Guaranteed Rate’s Pros & Cons
If you’re going to work with a lender, you need to understand the pros and cons of their services. Below, let’s take a look at the strengths and weaknesses of Guaranteed Rate.
What States Does Guaranteed Rate Offer Mortgage Services?
If you haven’t applied for a mortgage before, you might not realize that lenders need an individual license for each state. This means that some lenders are geographically restricted. They can only provide loans in certain regions.
Fortunately, Guaranteed Rate offers its services in all 50 states. This means that you’ll be able to access the company’s lending products in all areas of the United States. A lender that offers services nationwide is actually relatively rare.
Guaranteed Rate’s Available Mortgage Types & Programs
If you’re looking for a lender that can offer a broad range of products, you’ll be pleased to know that Guaranteed Rate has plenty of available options. At Guaranteed Rate, you can access traditional mortgages and refinancing loans. You can also choose between fixed-rate, adjustable-rate, and jumbo loans.
If you want to access a government-backed loan, you’ll find the three primary government loans on Guaranteed Rate’s platform: VA, FHA, and USDA.Have a house to sell before moving? Read our guide here. (January 24, 2020)
Guaranteed Rate’s Mortgage Fees & Rates
It’s always a good idea to understand a lender’s rates and fees before you apply for a loan. While Guaranteed Rate is slightly vague about its rates, it does offer some sample rates on its website. Technically speaking, you can access interest rates as low as 3.375% for some fixed loans.
Unfortunately, there also appears to be a funding fee that costs over $1,200, so you will need to factor this into the cost of your loan.
Guaranteed Rate’s Customer Service
If you need to get information about your loan (or a payment to your lender), you need a strong customer service team that is responsive and easy to reach.
Fortunately, you can contact Guaranteed Rate via phone or email if you need assistance with any of their services. For phone inquiries, you can call between the hours of 8:30 AM and 7:30 PM (CST) on weekdays. Saturday hours are from 9:00 AM to 2:00 PM (CST).
Guaranteed Rate’s Borrower Qualifications & Requirements
If you want to apply for a mortgage at Guaranteed Rate, you will need to meet some basic requirements. Guaranteed Rate has a minimum credit score requirement of 620. This score is typically the credit score that you need to apply for a mortgage with most lenders.
Additionally, you will need a healthy debt-to-income ratio and enough money to cover a down payment. The amount you need for a down payment depends on the type of loan that you’re trying to obtain. For example, FHA loans require 3% down payments, while conventional loans may require around 20%.
If you’re trying to obtain a VA loan, Guaranteed Rate has some options in place that allow you to avoid a down payment altogether. You may also be exempt from purchasing certain forms of private insurance.
It’s important to avoid applying for a mortgage if you don’t meet the minimum requirements. In fact, applying for a mortgage and being rejected can harm your credit score.
Guaranteed Rate’s Online Reputation
Some lenders have excellent interest rates and other attractive features, but they still often have a poor customer satisfaction rating. It’s best to steer clear of such lenders. Don’t ignore the opinions of previous clients. If you see some common trends in the negative reviews that you read, there is probably a reason for it: they’re more than likely true.
We performed some research on Guaranteed Rate to discover their track record and the quality of their customer service. Our conclusion? Guaranteed Rate is a top-rated lender with its clients. Indeed, the Better Business Bureau provided this lender with an A+ rating, the highest rating that is offered by this leading consumer watchdog.
More From ISoldMyHouse.com: Be sure to check out our other mortgage company reviews!
About the Author: Kris Lippi is the owner of ISoldMyHouse.com and the broker of Get LISTED Realty. He actively writes about real estate related topics such as buying and selling homes, how-to guides for around the house and home product recommendations. He has been featured in Inman, Readers Digest, American Express, Fit Small Business, Policy Genius, Lending Tree, GoDaddy, Manta as well as other major websites. Read more about us here.