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Monday, June 5th
SoFi offers a variety of financial products, ranging from home loans and refinancing to credit cards and more. They openly post their typical mortgage rates on their website and update them daily, but you'll need to create an account to see your personalized offers. Unfortunately, SoFi is not very transparent with closing costs and fees until much later in the process, and numerous client complaints about hard-to-reach customer service and late delivery of funds for closing have kept SoFi from earning our recommendation.
Freedom Mortgage has time on its side: this lender has been around for over 30 years and has over a million customers nationwide. You can use their site to prequalify for a mortgage, learn about various loan types, and get a better understanding of the home loan process. That's about all we'd recommend you do, though: despite an "A+" from the BBB, this company has over a thousand complaints that frequently mention how Freedom has dropped the ball with paperwork, payment processing, and so on. We suggest checking out our higher-rated home loan providers instead.
Your first thought might be to visit your local bank or broker, but think again. Why? You're not likely to get the very best rates and terms there. True, you might get a promo or slightly lower interest rate for being a current customer, but will your financial institution shop around to find you the ideal loan for your situation?
More than likely, they'll fit you with whichever mortgage is convenient (or profitable) instead of working to get you a home loan with the best possible terms. With interest rates constantly fluctuating, it's never a bad time to start looking into your financing options if homeownership is your goal. Even if you're just curious to see how much you can ultimately afford when the time comes, that will help you start budgeting and saving to have enough to secure your new home when you're ready.
Some mortgage terms stipulate that the funds can't come from a last-minute gift or contribution from a well-meaning family member, so plan ahead!
The easiest way to know how much you can borrow is by shopping for a home loan online. While some lenders require you to enter your personal information to show you their rates, others post sample rates online or let you choose your credit score range and other details to preview a more personalized quote. Be mindful that there's a difference between a "soft pull" on your credit - usually used to prequalify you, and only uses your address and phone number to verify your identity - and a "hard pull" that will impact your credit history.
The latter usually happens only when you've got a home under contract and you're ready to secure a mortgage, but pay attention to the fine print when you're checking out a lender's rates. You don't want to be "just browsing" and find out that your credit score took a nosedive with an unintentional hard inquiry on your report!
With many lenders interested in your business, how can you decide which one to use for your mortgage? Here are a few factors to look at before you complete a loan application:
To help you finance the home of your dreams, TopConsumerReviews.com has evaluated and ranked today's most popular mortgage lenders. We're confident that this information will be useful on your journey to home ownership. Congratulations!
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