The Yahoo view: An early mover in digital mortgages, Guaranteed Rate is a good choice if you’re looking for a quick loan approval or want to access your home’s equity. However, it is rated well below J.D. Power’s average in customer satisfaction.
Guaranteed Rate rose to national recognition as an online mortgage lender. But unlike many of its web-only competitors, it expanded with a network of local offices. Now, with some 500 branches around the nation, it offers a rare non-bank lender combination of online convenience with face-to-face options.
With a commitment to quick loan approval, a compelling home equity line of credit offering, and well-tested online capabilities, Guaranteed Rate should be on your short list of .
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Key benefits
A “Same Day Mortgage” promises loan approval — but not loan funding — within 24 hours of locking in an interest rate and submitting financial documents.
For a personal service option, Guaranteed Rate has hundreds of branch locations across the nation.
The lender offers non-qualified mortgages for self-employed borrowers or those who want to get a loan using alternative credit standards.
Need to know
A 1% down program is apparently available but is not shown on its .
Advertised rates factor in more than one discount point, and they are based on a 20% down payment and a FICO score well above the national average.
Guaranteed Rate scores significantly below average in customer satisfaction, according to the latest J.D. Power Mortgage Origination Satisfaction Study.
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Loan types offered
Guaranteed Rate for first-time home buyers
Unlike many lenders, Guaranteed Rate does not aggressively promote low-down-payment loans for .
While others are pushing — or even — Guaranteed Rate seems to downplay that option. We finally found mention of a 1% down payment program called among article resources, but not on the first-time home buyer page or on its loan options page.
However, Guaranteed Rate also offers and , which certainly cater to buyers wanting low or no down payments.
As for resources, it’s good to see a lender give first-time home buyers some common sense considerations. Guaranteed Rate does that, with an entire page dedicated to discussing the loan process, the , and FAQs.
The section called “What you need to consider before buying a house” is particularly on point, including questions like:
Are my finances sufficient and stable enough to afford a monthly mortgage payment?
Do I have enough saved up for a ?
Do I have additional money available to cover and unforeseen repairs?
It’s good stuff to ask yourself.
However, in a closing paragraph of all the reasons “why makes sense” is this line:
“On top of all of those reasons to buy a house, keep in mind that, as of 2020-2021, mortgage lending rates are at or close to historic lows. There’s no telling when interest rates will go back up, so now’s a good time to take advantage of these buyer-friendly conditions.”
Oops. Time to update the website.
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Guaranteed Rate for home equity lending
For homeowners looking to access their house’s equity, Guaranteed Rate makes a good pitch for its .
You may be able to take out a line of credit for up to 85% of your home’s current market value.
An online application takes about five minutes, and you can get your money as quickly as in five days.
Guaranteed Rate offers a fixed interest rate. HELOCs are often variable-rate products. A fixed rate can be a good option in a rising interest-rate environment. When rates are falling — not so much.
Guaranteed Rate is also very clear about what it takes to qualify for its HELOC: a minimum 620 FICO score and a of no more than 50%.
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Guaranteed Rate mortgage rates
Mortgage rates are easy to find on Guaranteed Rate. Just click on “Current rates” on the top nav bar. The resulting page shows a list of “national average rates.”
Some sample rates on various loan options are below that.
We were excited to see a “How low will your rate be?” calculator, too. Until we read the fine print.
Once you put in your information and click on the “I agree, get my personalized rate” button, you agree to be contacted by a rep, “including via auto-dialed and/or prerecorded or artificial voice calls and text messages (SMS and MMS), or email even if your telephone number is a cellular number or on a corporate, state or the National Do Not Call Registry (DNC) or other do not contact list.”
We read the fine print, so you don’t have to. But you should.
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Applying for a mortgage with Guaranteed Rate
You can apply with Guaranteed Rate online, by phone, or at a branch location. The website shows seven steps to applying:
It would be helpful if there were more details on the page about the process, the information, and the documentation you’ll need to complete each one. It could save a lot of time and frustration.
Imagine starting to fill out the online form or hopping on the phone to begin an application and realizing you’ll need a lot more than off-the-top-of-your-head answers to the questions.
Guaranteed Rate promotes “five-minute approvals” and an “easy process” using the app. Try the app.
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Guaranteed Rate home-buyer tools and calculators
There are a handful of calculators on Guaranteed Rate, not counting the mortgage payment calculator at the top of the “Mortgage tools” page. The other calculators are:
That’s a lot of calculators.
There are also tips for home buyers on the page, including and knowing the different available. At the bottom of the Tools page are some good FAQs, as well.
How Guaranteed Rate compares to other mortgage lenders
Guaranteed Rate vs. Guild Mortgage
If you are tight on savings, a low-down-payment loan might be important to you. Guaranteed Rate soft pedals low down payment loan programs. It took us a while to find its OneDown loan — and that was by accident. Guild Mortgage has a 1% down payment loan program and offers 2% grants for additional assistance. Guild also provides a 1% interest rate buydown for one year. So Guild might be worth your time to compare.
If you want to unlock home equity, both Guild Mortgage and Guaranteed Rate offer HELOCs. Guild looks for a credit score of 660 or better and lends up to 95% of a home’s value. Guaranteed Rate allows a qualifying credit score as low as 620 but has an 85% maximum loan-to-value. That gives you a choice: a lower credit score to qualify — or a higher credit line to tap.
Guaranteed Rate vs. Bank of America
Bank of America is another option to consider if you seek down payment and closing costs assistance. BofA offers grants of up to $7,500 toward closing costs and up to $10,000 toward down payment assistance for qualified buyers in many, but not all, states.
For homeowners with equity, Guaranteed Rate has an impressive HELOC offer with an application they claim takes only five minutes. BofA says its HELOC application takes about 15 minutes. So, if you’ve got 10 minutes to spare, you might want to see which lender gives you the best deal.
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