Because the member benefits are at the center of the SoFi platform, which facilitates high-speed mortgage and refinances transactions, the company feels more like a community than a traditional lender. Compared to some of its competitors, setting up, filling out forms, and locating information may be more difficult; however, a prompt response can be anticipated.
Because of its capacity to provide reasonably priced loans quickly while simultaneously maintaining a dedication to providing outstanding support, SoFi Mortgages has established itself as one of the most reputable refinances mortgage companies and a leading mortgage lender overall.
SoFi’s membership platform is crucial to this effort. You may save money by becoming a member of the organization and enjoying the many perks that come with it, such as lower interest rates on loans and access to financial advisers, all made possible via the membership platform.
When it comes to obtaining a mortgage loan, the entire process can be completed online, and the results of your application will be presented to you within a few minutes. Your questions about your credit score and the paperwork associated with the loan should also be able to be answered by the Home Loan Help Center.
SoFi does have some shortcomings when it comes to trying to find out specific information about its various packages, and the process of gathering this primary information is not as simple and uncomplicated as it could be. Because there is a requirement for a minimum credit score of 680, some borrowers will not be able to find a loan with SoFi.
The platform does not offer mortgages that the government backs, but it does provide access to conventional loans, including jumbo mortgages. There are mortgages with fixed rates available for terms of 15 and 30 years, and there are also mortgages with adjustable rates that offer lower interest rates. However, the requirement that borrowers have a down payment of 10% for 7/1 mortgages and 25% for 5/1 mortgages can make these options unaffordable for some people. To refinance your home, you must have at least 10% equity in the property.
Pros
- Super-fast pre-qualification process
- The community of members is wonderful
- There are no additional or obscure costs
Cons
- There is no physical store
- Because of the relatively stringent restrictions governing loans, not everyone has easy access to it
Key Features
- Application process: Online, with initial administrative setup required for access
- APR: Dependent on loan
- Fees: There are no hidden or extra costs.
- Calculators, maintenance, and technical assistance: Online assistance, a community-based support system, and a mortgage calculator
Application Process
The whole process of applying for a mortgage with SoFi may be performed online. If you have any questions or concerns, its mortgage loan officers and member experts are accessible by phone to provide support. The procedure might be a bit scarier than other platforms, and the claim that house loans are “only a clicks away” may be worth a little change on their website.
Forms and applications at the most fundamental level are protected by cutting-edge security. Before you can even begin the process, you must approve various terms of service and policy agreements through electronic signature. This may initially make the SoFi platform seem intimidating, especially when contrasted with the ease of use and transparency offered by Reali Loans, for instance.
Your rate will be determined via a soft credit pull, and the website will promise that being pre-qualified online will take two minutes of your time. After that, you will go on to the pre-approval process, which, as you would expect, will take more time and will need you to provide a variety of papers, such as your W-2, tax returns, bank account statements, and information regarding your assets and retirement plans. (Check U.S. Bank Mortgages review)
Keep at it, and after you’ve completed the registration process and become a member of the SoFi ecosystem, you’ll be in for a wonderful digital experience. As you go through the many choices, it is robust and safe, giving off an air of complete trustworthiness.
Once you’ve selected a mortgage product and been approved, you’ll deal with a SoFi loan officer who will lead your application through underwriting, answer your questions, and help you get your loan authorized.
Electronic job verification, importation of asset statements from U.S. financial institutions, online document exchange, electronic signatures, and improvements to the loan procedure is all part of the digital platform offered by SoFi.
In-person customer assistance is not available at any of SoFi’s branches. Mortgage loan officers and staff can assist over the phone and online throughout the procedure.
Credit Score Requirements
The minimum credit score required for a conventional loan from SoFi is 660, much higher than the restrictions imposed by some of the company’s other rivals. A credit score of 720 or higher is required for applicants seeking jumbo loans. Your credit score won’t be affected in any way by the preliminary “soft credit check” that is performed to determine whether or not you qualify for the prices and conditions being offered; a complete credit report won’t be requested until after you have selected a product and given your permission.
Other Requirements
Mortgage and refinancing loan eligibility are determined by a variety of other variables in addition to having a good credit score. These considerations include the borrower’s monthly income and spending, assets, work status and history, and employment history. You need to be a citizen of the United States and at least the age of majority in the state where you live.
You must have lived in the house you are buying or refinancing as your main residence or a second home for at least a year before it may be considered an investment property for this clause. You will need to check the SoFi website to see whether they provide service in the state in which you reside since mortgage loans are not accessible in eight states. Regarding the down payment size, SoFi provides conventional and jumbo mortgages for as low as 10%; however, the amount required will ultimately be determined by the amount of the loan being taken out. There is also the possibility of refinancing with a 10% initial deposit.
Interest Rates and Initial Charges
You will have to fill out certain forms to learn more about the conditions open to you since SoFi does not publish its standard mortgage rates on its website.
In addition to the typical appraisal, title, and credit report costs, SoFi has a house loan processing charge of $1,495. However, if you already have a SoFi personal loan, student loan, or a balance of at least $50,000 in a SoFi investment account, this price may be lowered by $500.
Other Potential Fees
SoFi Mortgage can maintain minimal overheads since it is a digital-only platform. As a result, it can follow in Reali’s footsteps by cutting extraneous expenditures from its total offering. Although there are no hidden fees in the traditional sense, it is important to note that SoFi necessitates borrower-paid mortgage insurance for mortgages with a loan-to-value ratio of more than 80%; thus, you should include the cost of this insurance in your budget if necessary.
Service
The breadth and depth of services provided by SoFi are unmatched by any other mortgage provider. You should find all of the information on credit scores and house loans and comprehend the varied language used by most home loan platforms inside the Home Loan Help Center. In addition to the standard numerical output, the SoFi mortgage calculator includes a nifty amortization graphic.
Even more amazing are the perks that are made available to members after they have joined the organization. These benefits include career assistance, savings on loans, chances to network, protection from unemployment, and access to financial counselors. The exclusive online group also makes bold claims, such as “money hacks” and “surprise swag gifts.”
On the other hand, some of the essential information on rates and fees is difficult to locate, and the Frequently Asked Issues section might benefit from providing more in-depth responses to some of the questions. Although customer care help over the phone is accessible from 4 a.m. to 9 p.m. on most weekdays, the lack of a live chat option is maybe a bit odd for a platform that is only accessible online.
What Users Say
On Trustpilot, SoFi has been rated 3.3 out of 5 stars, with the site including about 2,500 customer reviews. Given the breadth of services offered by SoFi, most consumers are discussing their experiences regarding goods other than mortgage refinancing. On the other hand, considering that approximately four out of five clients have ranked the organization as Excellent, you should be in good hands most of the time. The simplicity of the application process for any of SoFi’s services is often emphasized. Still, the most common sources of customer dissatisfaction are delays in the closure process and rejections.
On ConsumerAffairs, the average rating is rather consistent at about three stars out of 5, based on more than 450 reviews that have been filed over the last year. It is also important to point out that SoFi is one of the few organizations responding to comments made by customers on the site.
What to Do if You Are Rejected
Some of the most common reasons for not qualifying are having an inadequate income, excessive debt, a short or uncertain income history, or a damaged credit score. However, it is beneficial to understand the precise causes that are relevant to your circumstance.
You have the choice to go with more expensive alternatives and/or carry a greater degree of danger if you do not wait. These include obtaining a co-signer or co-borrower, working with an alternate lender whose standards are less stringent, or negotiating with an alternative lender. Get an idea of what you can afford by using a mortgage calculator.
It is also good to apply for a mortgage with many lenders to gauge your chances of being approved. According to the Consumer Financial Protection Bureau, this will only affect your credit score once, even if you make several applications within 45 days.
Rate Transparency
On its website, SoFi makes available a selection of standard mortgage rates. You will be required to provide your personal information and complete a form on our website before we provide you with a personalized price estimate. SoFi will do a “soft credit check,” which does not affect your credit score, to determine the interest rates and conditions you are eligible for. Following the selection of a product and the continuation of the application process, SoFi will submit a request to one or more of the consumer credit reporting agencies for a complete credit report.
SoFi Mortgages: Is It Right for You?
SoFi’s mortgage and refinancing application process is designed to be fast and easy once the first application has been filled out. You may be pre-qualified and pre-approved for a mortgage in the comfort of your own home, and the Home Loan Help Center should contain most of the information you need. Pre-approvals and pre-qualifications are only two of the many processes that may be completed online. But what separates SoFi from the others is participation in its community. It provides invaluable support in several forms and paves the way for cheaper service costs.
Some people won’t be able to meet the required credit score, but if you do, the required down payments are not impossible, and there are no other hidden fees to worry about. Although SoFi states that the application process takes just two minutes, we were forced to acknowledge that it took us three minutes. It makes no difference; all things considered, the additional minute was well spent.
