Mortgage

Zillow Residence Fairness Overview for 2021

overview

Zillow Home Loans is the Zillow Group's mortgage lender. The company began offering loans in 2019 after acquiring Mortgage Lenders of America.

Zillow's credit division employs more than 300 people. According to his website, the available mortgages include conventional, FHA, and VA loans for new purchases and refinancing.

The website does not provide information on other programs such as USDA loans, jumbo loans, or home equity loans.

Also, Zillow doesn't list current mortgage rates or minimum credit requirements. To get this information, you need to fill out a contact form and wait for a representative to contact you.

Zillow Home Loans Mortgage Rates

While many mortgage lenders advertise their interest rates online, Zillow Home Loans is not that transparent. Instead, you'll need to speak to a loan officer for pricing information.

Based on 2020 data, the average 30-year interest rate on Zillow Home Loans was lower than some other major lenders.

Plus, Zillow borrowers paid lower closing costs, on average – about $ 2,900 in total borrowing costs in 2020 and $ 850 in lending fees.

Average mortgage rates from major lenders

Zillow home loan
Rocket mortgage
Wells Fargo
Liberty mortgage

30-year average interest rate, 20201
3.17%
3.20%
3.62%
2.92%

Median total credit costs, 2020
$ 2,900
$ 4,610
$ 3,370
$ 3,340

Median creation fee, 2020
$ 850
$ 2,950
$ 1,280
$ 0

Average interest and fee data from public interest and fee records required by the Home Mortgage Disclosure Act (HMDA).

Check out Zillow's mortgage rates today, July 28, 2021

Zillow Home Loans Review for 2021

Home loan loan programs vary, so it is important to select the right loan for your situation.

The good news is that Zillow offers a variety of loan programs. These include government-secured mortgages such as FHA and VA loans, as well as conventional loans secured by Fannie Mae or Freddie Mac.

But unfortunately, Zillow Home Loans doesn't offer loans to everyone.

The website does not provide information on adjustable rate mortgages, reverse mortgages, jumbo loans, home loans, or USDA loans.

Also, the lender is not licensed in all 50 states. You must therefore confirm your eligibility with a representative before completing an application.

Also keep in mind that some borrowers may view the lack of information from the lender as a disadvantage.

When buying a home loan, having transparency about interest rates and requirements can point borrowers in the right direction. But unfortunately there is not much clarity in this area.

According to a client representative, you'll need to first fill out a contact form – provide your personal and financial information – and then wait for a loan officer to contact you. From there, you can fill out a mortgage application and ask questions.

Working with Zillow Home Loans

Zillow Home Loans does not have a full online mortgage application process.

To begin with, it may seem like you're completing a pre-qualification or pre-approval application online. They provide details about the type of loan you are looking for, your schedule for the purchase, and personal information.

But this is not a mortgage application. It's just a contact form that you need to fill out before proceeding.

You cannot fill out a loan application or ask questions until after you have been contacted by a loan officer.

After completing an application, you will typically need to submit supporting documents, including:

W2s and tax returns from the past two years Bank and / or retirement account statements A copy of your driver's license year-to-date income statement (if you are self-employed) Gift letter, if applicable Other documents requested by your lender

Zillow Home Loans offers mortgages in all but seven states, so you'll likely email your supporting documents or upload them to an online portal. Your loan officer will provide specific instructions on pre-approvals, loan estimates and closing.

You will likely receive pre-approval after your application is complete. And as soon as you have signed a purchase agreement, you will receive a loan estimate with your "estimated" loan terms.

You will receive a graduation form around three days before graduation. This includes your “actual” loan terms, including the interest rate, monthly payment, and cash required to close.

Get started with Zillow today, July 28, 2021

Customer Reviews of Zillow Home Loans

Zillow Home Loans receives mostly positive reviews from its borrowers. The company has a score of 4.3 out of 5 on Trustpilot.

Both refinancing and purchase borrowers praised the customer service and often described their loan officers as competent and friendly.

According to customer reviews, many borrowers closed on time – sometimes within weeks – and were happy with their mortgage rates.

Customer service reviews from major lenders

CFPB Complaints, 20204
Complaints per 100 mortgages, 20205
J.D. Power Satisfaction Score, 20206

Zillow home loan

1
0.00
Not rated

Rocket mortgage
391
0.03
883 / 1,000

Wells Fargo
554
0.05
840 / 1,000

Liberty mortgage
288
0.04
817 / 1,000

Zillow Home Loans does not have a J.D. Power Satisfaction Score for 2020. However, the lender received only one complaint to the Consumer Federal Protection Bureau in 2020. This is significantly fewer than the number of complaints received about large competitors.

Mortgage loan products at Zillow Home Loans

Zillow has options when it comes to buying a new home or refinancing an existing mortgage.

According to the lender's website, there are three types of home loan you can apply for:

Conventional Loans – These mortgages are typically secured by Fannie Mae and Freddie Mac. Zillow offers fixed-rate mortgages with terms of 15, 20, and 30 years, but doesn't appear to offer variable rate mortgages. The minimum down payment is 3%, and you typically need a minimum credit score of between 620 and 680 for a conventional loanFHA loan – These loans are supported by the Federal Housing Administration. Require a minimum credit score of 580 and a minimum down payment of 3.5% VA Loans – These loans are available to active members of the military, veterans, reservists, members of the National Guard, and eligible spouses. The VA does not set a minimum credit score, but many lenders require a minimum score of 580-620. VA home loans require no down payment, no personal mortgage insurance (PMI), and have lower closing costs

The lender's website does not provide any information about USDA loans, jumbo loans, or home equity loans. And unfortunately, you have to fill out a contact form and launch an application to confirm the availability of these products.

Where can I get a mortgage with Zillow Home Loans?

Zillow Home Loans is currently approved in 43 states. The company is not available in:

HawaiiMaineNew JerseyNew YorkVermontWest VirginiaWyoming

Additionally, you can find physical branches of Zillow Home Loans in 10 states:

ArizonaCaliforniaKentuckyMissouriMontanaNevadaNew YorkTennesseeTexas Washington

Borrowers without a branch in their home state can use Zillow Home Loans to work online and over the phone.

Is Zillow the Best Mortgage Lender for You?

Based on customer ratings, Zillow Home Loans offers fast and smooth lending. It is also known to employ very knowledgeable, friendly loan officers.

Despite the lender's lack of transparency about mortgage rates, its cost appears, on average, to be lower than some of its large competitors.

Also, the lender doesn't have many offices so only apply if you can manage the mortgage process online.

Since Zillow does not openly apply for credit requirements, you will need to fill out a contact form and start an application to see if you are eligible.

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