United Wholesale Mortgage Review | NextAdvisor with TIME

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United Wholesale Mortgage, headquartered in Pontiac, Michigan, is a wholesale lender, not a direct lender. United does not lend directly to borrowers – instead, it finances home loans from independent mortgage brokers in the United States. Although the loan terms and commissions vary depending on the lender you ultimately choose, you need to meet United’s requirements to be eligible for the loan. home loan. Here’s what you need to know if you’re working with one of United Wholesale’s partner lenders.

Pros and cons of United Wholesale Mortgage

pros

  • Can close purchases and refinance loans on average within 16-17 days

  • Available in all 50 states and Washington DC.

  • Finances a full range of mortgages including conventional purchase loans, government-funded purchase loans, and multiple refinancing options

United Wholesale Mortgage: loan types and products

To apply for a mortgage you need to go to FindAMortgageBroker.com and check lenders and mortgage brokers in your area. From there, you can apply for a mortgage. Loan options depend on the lender, but United Wholesale finances the following:

Home buyers have a choice between a fixed rate mortgage, at which the rate never changes, and an adjustable rate mortgage, which is provided at a fixed rate for a specific period of time only. After a fixed period, the ARM rate may rise or fall depending on market conditions. United Wholesale funds ARM on a 5/6, 7/6 or 10/6 basis. For example, with ARM 5/6, the rate is fixed for the first five years and then adjusted every six months for the remainder of the loan term. Each adjustment is capped at 1%.

This lender also finances giant loans, that is, home loans in excess of a certain dollar amount called corresponding loan limit… For 2021, this limit is $ 548,250 in most parts of the US. United Wholesale Mortgage will fund giant loans of up to $ 3 million.

United Wholesale Mortgage Transparency

Since United Wholesale Mortgage is not a source of mortgages, you will not find specific information on lender fees and mortgage rates on its website. But you will find several home buying guides and calculators on the lender’s website. Find a mortgage broker Web site. These tools can help you estimate your home spending and understand the buying or refinancing process.

When you start working with a lender, look for the following signs that a company is helpful and transparent:

  • The website is easy to navigate, clearly labeled and contains contact information.
  • The website has several tools and resources like blog posts, videos, and calculators to help you understand the mortgage process.
  • You can call or email a loan officer or representative to ask questions, get pre-approval, or apply for a loan.
  • You can compare mortgage rate quotes on the lender’s website or ask a representative for a personalized quote.
  • The lender clearly discloses and explains any borrowing costs you pay. This includes advance payment requirements, closing costs, the creditor’s commission and discount points… They should also help you calculate third-party fees and prepaid expenses like homeowner’s insurance and property tax

United Wholesale Mortgage: rates and fees

On its website, United Wholesale Mortgage does not advertise mortgage rates or lender fees that you might have paid when closing a deal. But when you start working with a lender or collect quotes, ask about the following types of commissions:

United Wholesale sets minimum down payment and credit score requirements for loans it finances based on a mortgage program. Here’s what you might need to qualify for one of the United Wholesale home loans:

Loan type Min. credit rating Min. advance payment
VA credits 620 0%
Conventional loans 640 3%
FHA loans 640 3.5%
Jumbo loans 680 ten%
Source: United Wholesale Mortgage Website

One of the main reasons you might want to work with one of the lender’s partners is for closing dates. United Wholesale tends to close out purchases and refinance home loans within 16 or 17 days, much faster than the industry standard. In June 2021, all mortgages closed during 49 days on averageaccording to ICE Mortgage Technology. A short closing chart can help you win bidding war to the house if the seller wants to move quickly.

Refinancing with United Wholesale Mortgage

If you already have a mortgage, you can refinance it with one of the United Wholesale partners using one of the following options:

  • Refinancing when cashing outthat allows you to take out a home loan in excess of your debt, pay off your current mortgage, and keep yourself some money to spare. Then, over time, you will pay off the new, larger loan and can use the cash for any expenses.
  • Refinancing rate and termwhich allows homeowners to change the terms of the loan, the interest rate, or both. It can help you save money on your monthly mortgage payments, get rid of private mortgage insurance, or speed up your payment deadlines.
  • VA interest rate cut refinancing loan (IRRRL)to help you refinance your existing VA loan to get a lower interest rate or switch from a regulated to a fixed rate.
  • FHA Optimizes Refinancingwhich allows you to refinance your existing FHA loan to save money and skip a lot of paperwork normally associated with refinancing. To qualify, you need to provide an accurate history of timely payments.

Consolidated Wholesale Mortgage Compared To Other Mortgage Lenders

United Wholesale Fairway Independent Mortgage Corporation New American funding
Minimum credit rating 640 for contingent loans; 680 for large loans; 640 for FHA loans; 620 for VA credits 620 for conditional loans; 660 for large loans; 600 for FHA loans; 600 for VA credits 580
Minimum down payment 3% for regular loans, 10% for large loans, 0% for VA and USDA loans 0% to 5% From 0% to 5%, depending on the mortgage program
Where does the lender work? All 50 states and Washington DC All 50 states and Washington DC Washington DC and all states except New York and Hawaii.
Main types of loans Regular, Large, VA, FHA, USDA, Adjustable Rate, Fixed Rate, Refinancing, Cash Out Refinancing, FHA Optimized Refinancing, IRRRL VA Refinancing Regular, Large, VA, FHA, USDA, Miscellaneous Renovation Loans, Adjustable, Fixed Rate, Refinancing, Cash Payable Refinancing, Reverse Mortgages, Real Estate Loans, Home Equity Loans Regular, Large, VA, FHA, USDA, Home Improvement Loans, Adjustable Rate, Fixed Rate, Refinancing, Refinancing with Cash Out, Reverse Mortgage, Home Equity Lines

How to shop around to get the best mortgage rate

The best thing you can do is shop around if you are looking to save on a home loan. According to Freddie Mac surveyborrowers save about $ 3,000 on average if they receive at least five interest rate quotes.

And you may be able to save even more if you negotiate. After receiving quotes from several creditors, compare these offers and send the best deal to another lender. Ask them to beat the interest rate or the closing cost – or both. Lenders may be willing to compete for your business, especially if you have a high credit rating or significant down payment.

To see how important small differences in quotes are, take a look at one example. Let’s say you want to buy a $ 200,000 home with a 20% down payment and a 30-year mortgage. You get quotes from two different lenders and use online mortgage calculator to find out your potential savings:

Interest rate Monthly payment of interest and principal Percentage saved
3.5% USD 718
3.25% USD 696 $ 22 per month or $ 7,920 over the loan term

At an interest rate of 3.5%, the monthly principal and interest payments are $ 718. But at an interest rate of 3.25%, you save $ 22 a month in interest expenses. It might not sound like a lot, but overall, you can save $ 7,920 over 30 years.

Bottom line

United Wholesale Mortgage is not a direct source of your home loan, but will put you in touch with mortgage lenders or brokers who can help you with the mortgage process. This can be a useful option if you live in an area where it is difficult to find a lender, or you need help comparing mortgage companies and loan options.

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