All Information You Need To Know About Guaranteed Rate Mortgage

Guaranteed Rate is a nationwide mortgage provider that focuses on financing purchase loans for well-qualified consumers. Guaranteed Rate’s low-interest-rate offerings and upfront charge savings make it a competitive alternative for funding your home purchase if you have a solid credit score and income level. The company’s comprehensive website also provides a more in-depth user experience than most other direct lenders.

Guaranteed Rate mortgage Loan In A Nutshell

Conventional loansYes
FHA loans Yes
VA loans Yes
Refinancing Yes
Jumbo loanYes
Adjustable loanYes
Fixed ratesYes- 30 years and 15 years 

It has over 400 physical locations, focuses on employing technology to simplify the homebuying process, and claims to be the first lender to offer a fully online mortgage procedure. The organization now employs over 9,000 people and has an annual loan volume of more than $70 billion.

Pros

  • The application procedure is quick and digital.
  • Available all throughout the United States
  • Closings can be completed from the convenience of your own home.

Cons

  • It’s difficult to evaluate all loan possibilities.
  • There are no home equity loans available.
  • In certain states, remote closure services are not available.

There Are Six Things About Guaranteed Rate Mortgage That You Should Know

  • The application procedure is quick and digital.

Guaranteed Rate promotes their digital mortgage procedure, which allows clients to fill out a mortgage application, upload and sign papers, and receive approval in under an hour. This, according to the business, allows it to settle loans two days faster than other lenders.

  • Available all throughout the United States

Guaranteed Rate is authorized to lend in all 50 states as well as the District of Columbia. If you prefer in-person service, the lender has over 400 locations in 46 states, so there’s likely one near you.

  • Closings can be conducted in the privacy of your own residence.

You might not need to go to an attorney or title business to finalize your loan if you use Guaranteed Rate. The lender’s FlashClose service allows for at-home closings. Most of your closing paperwork may be reviewed ahead of time, leaving just the notarization procedure to be completed in person or through a webcam in some jurisdictions.

  • It’s hard to evaluate all loan possibilities

Whilst Guaranteed Rate deserves credit for publishing current mortgage rates on its website, depending on the loan, you may need to go elsewhere. Only a few alternatives have rates shown on the lender’s main rates page, with the rest scattered around the site. This might make weighing all of your alternatives more challenging.

  • There are no home equity loans available.

Home equity loans and home equity lines of credit are not available via Guaranteed Rates. Customers who want to take advantage of the equity in their property will have to seek elsewhere.

  • Exceptional services Not all states have it

You may be upset if Guaranteed Rate’s top services aren’t accessible in your region, depending on where you reside. The company’s entirely remote closure option isn’t available in all states, and four states don’t have any physical locations.

Who May Benefit From A Guaranteed Rate Loan?

Guaranteed Rate is a dependable mortgage provider with a diverse selection of products. Guaranteed Rate is an excellent lender to look into if you’re looking for a traditional 30-year fixed-rate mortgage, as the firm makes it simple to obtain those daily prices. Guaranteed Rate is also a wonderful alternative for customers who like to close their loan at their house. If you’re looking for adjustable-rate mortgages, a Guaranteed Rate is a good option.

What Is A Guaranteed Rate?

Guaranteed Rate offers preapproval with automated underwriting to borrowers. You’ll need to supply information about your income, assets, and credit in the digital mortgage application, which should take approximately 15 minutes to complete. With a service called FlashClose, you may e-sign most of your closing paperwork, reducing closing times to as little as 30 minutes.

How Can You Apply For A Guaranteed Rate Mortgage?

  • To begin the process of applying for a Guaranteed Rate mortgage, you can either fill out the lender’s online application or find a loan officer in your region to assist you. On Guaranteed Rate’s website, both alternatives are easily accessible.
  • The online application walks you through a number of simple questions concerning the sort of property you want to buy and the prospective purchase price, as well as your personal details, the size of your down payment, and your income. Guaranteed Rate will need your Social Security number to do a credit check before you submit your application.
  • A preapproval letter will be sent to you if your full application is approved. If you have any questions, you may contact a loan officer using the contact number and email address provided on the online application.
  • With a preapproval letter in hand, you’ll be able to look for a house knowing how much you’ll be able to spend. Guaranteed Rate will schedule an appraisal and begin final underwriting on your loan after you’ve selected a house to buy. You’ll go on to the closing when your information has been validated and you’ve received final permission, which you may be able to accomplish at home via a webcam in some states. You’ll find information about closing expenses and fees in your closing paperwork.

What Are The Pluses And Minuses Of Guaranteed Rate Mortgages?

When we evaluated Guaranteed Rate’s mortgage offers, we discovered that both the user experience and the data were far superior to what we’ve seen with the average direct lender. Based on a $198,000 purchase price and a 10% down payment, we compared the company’s 30-year mortgage to those offered by major banks.

Estimates Of 30-Year Fixed-Rate Mortgages At Major Banks

Guaranteed rateChase Bank of AmericaWells Fargo
Interest Rate3.88%3.88%3.675%3.88%
APR4.32%4.16%4.11%4.15%
Cost of Points-$300$223$1,000$0
Monthly P+I$838$838$825$838
Mortgage Insurance $45$65$66$61

Obtaining several figures at the same time helped us to gain a sense of Guaranteed Rate’s competitive edge, even though mortgage rates are continually changing. While the rate isn’t much better than major names like Chase, Guaranteed Rate will give you lender credit in cases when others would charge you for discount points. These points and credits are applied to your closing expenses, making Guaranteed Rate the most cost-effective choice if you want to save money on your mortgage fees upfront.

If you’re considering buying a mortgage with a down payment of less than 20%, you should know that Guaranteed Rate also supplied the most affordable estimate for mortgage insurance. Mortgage insurance protects the lender from the danger of default, although, in most circumstances, the borrowers must fund the expense themselves. Although borrowers-paid mortgage insurance can be canceled in the future, paying smaller premiums from the start can save you hundreds of dollars in the long run.

Also Read: Caliber Home Loans

What Are The Terms, Fees, and Conditions Of The Guaranteed Rate?

“Mortgage costs vary based on a number of factors such as the purchase price of your house, the product you choose, and where you live,” explains Michael Gatti, Guaranteed Rate senior vice president of secondary marketing. “At Guaranteed Rate, they are completely transparent about the rates and prefer to charge a flat fee rather than charging for each individual item.”

Without giving any contact information, you may use Guaranteed Rate’s affordable mortgage calculator to evaluate prospective loan alternatives, rates, and fees. An origination charge may be included in your Guaranteed Rate closing fees.

You are now ready to apply at a Guaranteed rate mortgage as you have enough information, to begin with. 

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