SoFi Mortgage Loan - A Comprehensive Review 2024

Jan 16, 2024 By Susan Kelly

SoFi Mortgage Loan is a one-stop online banking company for personal finance. It was founded in 2011 by Stanford Business School students. This San Francisco-based company was started as a student loan lender, and then it expanded worldwide to cover everything from home debt projects to credit cards, auto loans, insurance, and more.

This company now offers a range of financial support programs, including refinance mortgages and purchase loans as well. SoFi offers mortgages in Washington, D.C., and all 50 states. Some typical mortgages offered by SoFi are cash-out mortgages, jumbo refinance or purchase, refinance mortgages, and home equity lines credit (HELOC).

The lender has received an A+ rating from the Better Business Bureau (BBB). As of Dec. 11, 2023, the company has a customer review rating of 1.74 out of 5.0 stars on the BBB. However, many of these reviews are about the company’s non-mortgage products. SoFi has a rating of 4.7 out of 5.0 stars on Trustpilot, which is based on more than 7,500 reviews as of Dec. 11, 2023.

If you’re considering a mortgage loan from SoFi, here’s a complete SoFi Mortgage Loan Review for you:

An Overview of SoFi

SoFi started as a student loan lender company and expanded worldwide to everything from home debt projects to credit cards, auto loans, insurance, and more. This company now offers a range of financial support programs as well. Quick service and low mortgage rates are advantages of SoFi companies. In the beginning, SoFi was launched for student loans, but then it extended its circle to other loans and debts as well. However, this is not reliable when it comes to offering debts to first-time borrowers, and they would not be able to get USDA and FHA loans.

SoFi has now extended its services from typical mortgages to a large amount of banking and lending services, making this startup a good option for a one-stop shop for various financial needs. It can cover a wide range of financial needs of the person who applies for a SoFi loan. It's important to note that specific features of SoFi can vary yearly, and the borrower should carefully review the terms and conditions of the contract while considering the loan.

How to Apply for a SoFi Mortgage?

The requirements for a SoFi mortgage application can vary depending on the loan type a person applies for; here are some general points to be cleared:

  • There are two types of interest rates: fixed interest rates and variable interest rates. While taking the loan, you should go for fixed interest rates as they are less risky.
  • Comparing the finance rates can save a lot of money. Even if the loans have a credit difference of a few fractions, do not overlook it, as it can save you money.
  • Using a refinance calculator can also save from your monthly payments.
  • You can also buy points to lower the interest rate. One point is equal to one percent of the total loan amount.
  • Also, carefully consider the loan amount. The more amount of your loan will also increase the amount of the monthly installment payment.
  • Another important step is to get a good credit score. There are no shortcuts to improve your credit score. The person needs to be consistent with their bill payments.
  • Do not make useless credit inquiries, as they lower your credit score by a few points every time a person makes a credit inquiry.
  • You need all the paperwork that shows your tax returns, your income, bank statements, any property, and complete financial information.
  • SoFi companies offer loans to first-time borrowers at only a 3% down payment, and for those who have taken loans previously, SoFi asks for a 5% down payment.

Essential Steps To Take Before SoFi Loan Approval

1. Compare lenders: Apply for a loan with two to five lenders. While the first lender's credit check will likely decrease your score slightly — often less than five points, according to FICO — subsequent inquiries let lenders know you're rate-shopping and shouldn't hurt your score further. Submit all applications within two weeks to minimize the impact on your credit score.

2. Get pre-qualified: Take a look at all the factors like eligibility criteria, interest rates, and credit scores. This will give you an idea about how much you qualify for the loan if you apply.

3. Submit a loan application: After doing your research, you can apply for a loan with the lender you like best. You can also make a formal application to SoFi by talking to their mortgage loan officers, and they will guide you in the best possible way.

4. Close the loan: If SoFi approves your loan, they will also guide you through the closing process. There are some closing costs mentioned in the loan agreement that need to be paid before the loan ends.

Pros & Cons of a SoFi mortgage

Pros:

● The loan rate can be locked for 90 days.

● The interest rate is lowered.

● The duration of the loan can be decreased, and it can be paid sooner.

● An adjustable loan rate can be changed to a fixed-rate loan.

● Only a 3% down payment is available for first-time borrowers.

Cons:

● It requires a high credit score for FHA requirements.

● It is not available in all the states.

● It does not offer USDA loans

Summary

That is all you need to know about SoFi Mortgage Loan. Undoubtedly, it is a useful tool that will help you get different mortgage products, including conventional mortgages, jumbo loans, VA loans, and, most recently, FHA loans. It can cover a wide range of financial needs of the person who applies for a SoFi loan. It's important to note that specific features of SoFi can vary yearly, and the borrower should carefully review the terms and conditions of the contract while taking the loan.

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