SoFi Mortgage Review: Pricing Perks and an Online Application But Only Offer Fixed-Rate Loans

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At present we’ll do a deep dive into SoFi, brief for Social Finance, which affords mortgages, private loans, pupil mortgage refinancing, and even a bank card.

Their general purpose is to “assist individuals get their cash proper,” however we’ll concentrate on the mortgage half for the needs of this overview.

Chances are high you’ve heard of the corporate, maybe as a result of SoFi Stadium is the house of each the LA Rams and LA Chargers.

Or perhaps they refinanced your pupil mortgage sooner or later previously. The San Francisco-based on-line financial institution can also be making a much bigger push into the house mortgage house.

So if you happen to’re a potential dwelling purchaser or present proprietor, chances are you’ll wish to add them to your listing of lenders to think about.

SoFi Mortgage Quick Info

Retail direct-to-consumer financial institution and mortgage lender
Affords dwelling buy financing and mortgage refinancing
Based in 2011, headquartered in San Francisco, CA
Licensed to do enterprise in 49 states and the District of Columbia
Funded roughly $3 billion in dwelling loans throughout 2021
Additionally affords pupil mortgage refinancing, private loans, insurance coverage, and banking providers
Publicly traded firm (NASDAQ: SOFI)
Affords an on-time closing assure and waived charges on refinances

Social Finance Inc., or SoFi for brief, was based in 2011 by a group of scholars from Stanford Graduate Faculty of Enterprise.

They initially provided pupil loans and later expanded into private loans, mortgages, bank cards, checking and financial savings accounts, and likewise insurance coverage.

One of many firm’s founders, Mike Cagney, began his personal firm referred to as Figure, which affords dwelling fairness strains of credit score and crypto mortgages.

SoFi relies in San Francisco, CA and considers itself a digital financial institution. To that finish, they don’t have bodily branches.

In the meanwhile, they’re licensed to do enterprise in each state aside from Hawaii. Nonetheless, solely buy loans are provided within the state of New York.

On April third, 2023, the corporate introduced the acquisition of “main fintech mortgage lender” Wyndham Capital Mortgage.

This could additional their attain within the mortgage house and make them a extra vital participant transferring ahead.

In 2021, SoFi funded roughly $3 billion in dwelling loans, with almost 90% of quantity coming from refinance transactions.

Learn how to Apply for a Mortgage with SoFi

To get began, you possibly can head over to their web site and take a look at their day by day mortgage rates and/or tinker round with their on-line mortgage calculator.

In case you like what you see, you possibly can click on on “Begin utility” to get the ball rolling. Or you probably have further questions, you possibly can name them up straight.

SoFi prides itself on utilizing the most recent expertise to make the method as paperless as attainable. However in addition they have devoted human mortgage mortgage officers that present one-on-one assist.

Their digital dwelling mortgage utility is powered by fintech firm Mix.

It lets you fill out the appliance electronically, hyperlink monetary accounts for straightforward importing, and scan/add documentation when wanted.

Many paperwork equivalent to mortgage disclosures will also be eSigned that will help you save time alongside the way in which.

As soon as accepted, you’ll be capable to log in to your portal to verify mortgage standing, fulfill excellent situations, and get in contact together with your mortgage officer.

All in all, they provide a great mixture of expertise and human customer support that will help you get to the end line.

House Mortgage Applications Provided by SoFi

House buy loans
Refinance loans: charge and time period and money out
Conforming loans backed by Fannie/Freddie
Jumbo loans as much as $3 million mortgage quantities
3% down cost choices
Mounted-rate mortgages: 10-, 15-, 20-, and 30-year mortgage phrases
HELOCs

SoFi affords dwelling buy loans and refinance loans, together with cash out refinances.

They lend on single-family properties, condos, and 1-4 unit properties, together with second properties and funding properties.

The entire loans they provide are conventional, which means no FHA loans, VA loans, or USDA loans.

Which will change sooner or later, however as of now you’re restricted to a conforming loan backed by Fannie Mae or Freddie Mac for as much as 97% loan-to-value (LTV).

Or a jumbo loan, with mortgage quantities as much as $3 million and down cost as little as 10%.

SoFi solely supply fixed-rate mortgages (no adjustable-rate mortgages), with phrases of 10, 15, 20, and 30 years out there.

Those that don’t wish to lose their low charge on a primary mortgage can reap the benefits of a house fairness line of credit score (HELOC).

SoFi affords HELOCs as giant as $500,000 as much as 95% CLTV.

SoFi Mortgage Charges

One good factor about SoFi is that they publicize their mortgage charges on-line. This implies no guessing how low they’re.

You’ll see day by day charges proper on their mortgage homepage for the 30-year fastened, 20-year fastened, 15-year fastened, and 10-year fastened.

Ultimately look, they seemed to be fairly aggressive relative to others banks and on-line lenders.

You can even put in your mortgage parameters (e.g. mortgage quantity, property kind, LTV) to get extra customized charges.

In the meanwhile, they’re additionally providing a 0.25% buy pricing particular on 30-year conforming buy transactions. Make sure you inquire for particulars.

SoFi additionally just lately launched a “Lock and Look function” that lets you lock in your charge for as much as 90 days earlier than you discover a property.

This is called a prelock in mortgage jargon and may be useful if you happen to like the place charges are, however have but to discover a dwelling.

And if you happen to submit a completely executed buy contract inside 30 days of that charge prelock, SoFi will scale back the speed locked by an extra 0.125% without charge.

The one query mark is lender charges – they seem to cost an “administrative charge” which is akin to an utility or loan origination fee. But it surely’s unclear how a lot.

Make sure you inquire about each charges and costs if/while you apply. And take note of the mortgage APR that includes each gadgets.

SoFi Shut On-Time Assure

Like another mortgage lenders, SoFi affords an on-time assure.

This implies in case your mortgage doesn’t shut on or earlier than your cut-off date, and the delay is because of SoFi, they’ll give you $2,000.

It’s solely out there just for the acquisition of a major residence (owner-occupied). And the property should be a single-family residence (no condos).

The mortgage quantity should be conforming and meet the rules of Fannie Mae.

Moreover, that you must be a W-2 borrower (no self-employed debtors) and an executed buy contract should be submitted no less than 30 days previous to the cut-off date.

There are different phrases, like locking the mortgage, paying for and scheduling the appraisal, and offering all required documentation inside 24 hours of SoFi requesting it.

And importing any follow-up paperwork inside 36 hours of their request.

Mainly, that you must do your half and have a simple mortgage situation to qualify.

SoFi Will Waive Their Payment on Mortgage Refinance Purposes

In the meanwhile, SoFi is providing to waive its so-called administrative charge while you refinance your mortgage.

To be eligible, you have to take out a SoFi mortgage for the acquisition of a house and shut by June thirtieth, 2023.

If you refinance, the “present market rate of interest” should be no less than 1% decrease than the rate of interest in your unique mortgage.

And you have to request that the executive charge be waived on the time of utility (and previous to locking your mortgage charge).

The supply is restricted to at least one refinance transaction per individual and it should happen by June 1st, 2024.

Whether or not mortgage charges fall by that quantity stays to be seen…

As with all these kind of offers, a waived charge won’t imply a lot if a distinct mortgage firm is providing a decrease charge and/or much less charges.

Nonetheless take the time to buy with different corporations even when they’re providing to waive a charge.

SoFi Mortgage Critiques

As a result of SoFi affords the total spectrum of banking providers, you’ll must comb by opinions rigorously.

Over at Zillow, they’ve a 4.67/5 score from over 300 opinions. These needs to be all or largely mortgage-related, so chances are you’ll wish to begin right here first.

On Trustpilot, SoFi has an “glorious” 4.6/5 score from over 5,000 buyer opinions. Take the time to learn them to search out mortgage-oriented opinions.

At ConsumerAffairs, they’ve a lesser 3.8/5 score from about 2,600 opinions. And a 2.9/5 with WalletHub from round 800 opinions.

Once more, that you must filter the mortgage opinions from the remainder to get a clearer image of customer support with regard to dwelling loans.

Whereas not Higher Enterprise Bureau (BBB) accredited, they do presently maintain an ‘A+’ score based mostly on grievance historical past.

That being stated, there have been almost 900 complaints on file over the previous three years and their score is a dismal 1.24/5 on the BBB web site based mostly on buyer opinions.

After all, lots of the opinions is likely to be associated to different merchandise provided by the corporate that don’t have anything to do with mortgages.

To sum issues up, SoFi appears to supply the most recent tech and a few pricing incentives that would make them aggressive relative to different choices.

However their lack of a full lending menu could also be a flip off for some. These with a simple mortgage situation may discover them price contemplating if the worth is correct.