SoFi Mortgage Review 2023

SoFi Mortgage Review 2023

SoFi Home Loans: A Convenient Online Mortgage Lender for Easy and Affordable Home Financing

Are you looking to buy a new home? Negotiating the complex world of mortgages can be a daunting task. But fear not! SoFi is here to simplify the process and provide you with a convenient and easy online mortgage lending experience.

The Benefits of SoFi Home Loans

SoFi is an online mortgage lender that caters to conventional mortgage borrowers, providing them with a seamless and user-friendly experience. But that’s not all! SoFi has recently expanded its offerings to include VA loans, making it an even more attractive choice for homebuyers.

One of the standout features of SoFi is that it is willing to accept credit scores as low as 600 for VA loans. This is great news for individuals who may have a lower credit score but still want to take advantage of this type of home financing. SoFi’s commitment to accessibility sets it apart from other lenders.

Interest Rates and Fees

Now, let’s talk about interest rates and fees. SoFi displays a small sampling of interest rates on its main “home loans” page. These rates offer a rough idea of what you might expect. However, for more personalized rates, simply click on “explore options” and enter relevant information such as purchase price, down payment, credit score, and property location.

It’s important to note that SoFi charges a $1,495 loan processing fee. This fee covers the service of having SoFi originate your mortgage. Although lender fees are a standard part of closing costs, SoFi’s loan processing fee is relatively low compared to other mortgage lenders.

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In fact, according to the Home Mortgage Disclosure Act data, the average borrower obtaining a conforming mortgage from SoFi in 2022 paid only $2,651 in origination charges. This puts SoFi on the lower end of the scale compared to its competitors.

Exclusive Offers and Discounts

SoFi values its customers and offers exclusive benefits to certain individuals. If you have previously received a personal loan or student loan from SoFi, or if you have a minimum balance of $50,000 in your SoFi Invest account, you may be eligible for a $500 discount on your loan processing fee for your first SoFi mortgage. That means you’d only have to pay $995!

Comparing SoFi to Other Mortgage Lenders

When comparing mortgage lenders, it’s crucial to consider your individual needs and preferences. Let’s take a look at how SoFi stacks up against two other online mortgage lenders, Better Mortgage and Rocket Mortgage.

SoFi Mortgage vs. Better Mortgage

Better Mortgage is one of the top online mortgage lenders, offering similar services to SoFi. However, Better Mortgage also provides FHA mortgages, which can be attractive options for some buyers. SoFi, on the other hand, stands out for its lower average origination costs, making it ideal for individuals looking to keep their closing costs down.

To determine which lender offers you the best overall deal, it is recommended to get preapproved with both SoFi and Better Mortgage. Rates may vary, so it’s always beneficial to compare your options carefully.

SoFi Mortgage vs. Rocket Mortgage

Rocket Mortgage is another popular choice, particularly for borrowers interested in FHA mortgages. Rocket Mortgage’s FHA loans allow for lower credit scores and down payments as low as 3.5%. In contrast, SoFi does not offer FHA mortgages.

Rocket Mortgage also has programs such as its ONE+ mortgage, which provides assistance to low-to-middle-income borrowers in eligible areas. Additionally, Rocket Mortgage is well-known for its mortgage refinance options, making it an attractive choice for individuals looking to refinance their homes.

Similar to the comparison with Better Mortgage, it’s advisable to get preapproved with both SoFi and Rocket Mortgage to determine which lender can offer you the best overall deal. Both lenders consistently rank high in customer satisfaction and provide convenient online experiences.

How SoFi Mortgages Work

SoFi makes the mortgage process easy and convenient by offering completely online lending services. Whether you’re in one of the US states or Washington, DC, you can avail of SoFi’s mortgage products. However, it’s important to note that SoFi does not currently offer refinances in New York.

SoFi provides a range of mortgage options, including conventional mortgages (both conforming and jumbo), VA mortgages, and HELOCs. Additionally, you can use SoFi for mortgage refinancing, whether you opt for a rate-and-term refinance or a cash-out refinance. However, it’s worth mentioning that SoFi does not offer FHA or USDA mortgages.

Excitingly, in April 2023, SoFi acquired Wyndham Capital Mortgage, further expanding its suite of mortgage products. This acquisition positions SoFi to offer an even wider range of mortgages, providing borrowers with more options to suit their specific needs.

As for down payments, SoFi allows conventional first-time homebuyers to put down as little as 3%. For all other borrowers, a minimum down payment of 5% is required.

When it comes to customer service, SoFi is committed to meeting your needs. You can call, email, or chat online with their customer service representatives from Monday to Friday, 6 a.m. to 6 p.m. PT.

Trustworthiness and Controversies

SoFi is highly regarded in the industry and has an A+ rating with the Better Business Bureau. This rating reflects SoFi’s commitment to honesty in advertising, transparency in business practices, and responsiveness to customer complaints.

It’s important to note that SoFi has faced some legal action in recent years. In 2020, SoFi was named as a defendant in a class-action lawsuit alleging unlawful denial of lending products to DACA recipients. SoFi later settled the lawsuit. In 2021, SoFi Wealth settled a charge from the Securities and Exchange Commission regarding a breach of fiduciary duties, which resulted in certain account holders incurring capital gains.

While these incidents did occur, it’s crucial to consider SoFi’s overall track record, positive customer experiences, and their efforts to continuously improve their services.

Frequently Asked Questions about SoFi Mortgage

Let’s address some common questions about SoFi Mortgage:

How We Reviewed SoFi Mortgage

When reviewing SoFi Mortgage, we employed a comprehensive methodology to evaluate various factors. This included analyzing loan types, affordability, customer satisfaction, and trustworthiness. Each factor was assigned a rating between 1 and 5, which was then averaged to provide an overall lender rating.

Lenders received higher ratings if they offered a wide range of loan types with affordable features, had positive customer reviews, and had no recent controversies or public issues. Based on our evaluation, SoFi Mortgage emerged as a reliable and customer-friendly lender.

Final Thoughts

SoFi Home Loans is a trusted online mortgage lender that provides a seamless and transparent home financing experience. With its convenient online platform, competitive interest rates, and commitment to accessibility, SoFi is an excellent choice for homebuyers seeking an easy and affordable mortgage solution.

Remember, comparing lenders is crucial to finding the best deal for your specific needs. So, consider exploring options with lenders like Better Mortgage and Rocket Mortgage as well. By doing so, you can make an informed decision and secure a mortgage that suits your goals and financial situation. Happy home hunting!

Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.

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