Zillow Home Loan Review 2021

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Overview

Zillow Home Loans is the mortgage lending arm of the Zillow Group. The company began offering loans in 2019 following the acquisition of Mortgage Lenders of America.

Zillow’s loan division employs over 300 people. According to his website, available mortgages include conventional loans, FHA and VA loans for new purchases and refinancing.

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

In addition, Zillow does not list current mortgage rates or minimum credit requirements. To get this information, you need to fill out the contact form and wait for a representative to contact you.


Zillow Home Loans Mortgage Rates

While many mortgage lenders advertise their rates online, Zillow home loans are not as transparent. Instead, you need to speak with a loan officer for information on rates.

According to 2020 data, the average 30-year interest rate offered by Zillow Home Loans was lower than some other major lenders.

In addition, Zillow borrowers paid on average lower closing costs – about $ 2,900 in total loan costs in 2020 and $ 850 in loan origination fees.

Average mortgage rates for large lenders

Zillow Home Loan Rocket mortgage Wells Fargo Freedom mortgage
Average 30-year interest rate, 2020one 3.17% 3.20% 3.62% 2.92%
Average total cost of a loan, 2020 USD 2,900 USD 4,610 USD 3,370 USD 3,340
Average Creation Fee, 2020 USD 850 USD 2,950 USD 1,280 $ 0

Average rate and fees data is obtained from publicly available reports on rates and fees required Housing Mortgage Disclosure Act (HMDA).

Check out mortgage interest rates from Zillow today, July 28, 2021.

Zillow Home Loan Review 2021

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

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

Unfortunately, Zillow Home Loans does not provide loans to everyone.

There is no information on his website about adjustable rate mortgage, reverse mortgage, giant loans, Real Estate Loans or USDA Loans.

In addition, the lender is not licensed in all 50 states. Therefore, you need to confirm your eligibility to participate in the program before completing the application.

Be aware that some borrowers may view the lack of information from the lender as a disadvantage.

When buying a home loan, the transparency of rates and requirements can point borrowers in the right direction. Unfortunately, there is no great clarity in this area.

According to the client’s representative, you must first fill out the contact form with your personal and financial details, and then wait for the loan officer to contact you. From there, you can complete your mortgage application and ask questions.

Working with Zillow Home Loans

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

At first, it may seem like you are filling out an online prequalification or pre-approval application. You will provide detailed information about the type of loan you are looking for, the timing of the purchase and personal information.

But this is not a mortgage. This is just a contact form that you must fill out before proceeding.

You cannot fill out a loan application or ask questions before after a loan officer will contact you.

After completing the application, you usually need provide supporting documentation, including:

  • H2 and tax returns for the previous two years
  • Bank and / or pension account statements
  • A copy of your driver’s license.
  • Annual 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 will most likely email supporting documentation or upload to an online portal. Your loan officer will provide specific instructions regarding pre-approval, loan appraisal, and closure.

You will most likely receive pre-approval after completing the application. And as soon as you have a signed sales contract, you will receive Loan valuation with your “indicative” loan conditions.

You’ll get Final disclosure form three days before closing. This includes your “actual” loan conditions, including the interest rate, monthly payment, and cash required to close.

Get started with Zillow today, July 28, 2021.

Zillow Home Loans customer testimonials

Zillow Home Loans receives mostly positive reviews from borrowers. On Trustpilot, the company received 4.3 out of 5 points.

Refinancing and buying borrowers spoke highly of their customer service and often described their loan officers as knowledgeable and friendly.

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

Customer service reviews from major lenders

CFPB Complaints, 20204 100 mortgage complaints, 2020five JD Power Satisfaction Score, 20206
Zillow Home Loan one 0.00 Not rated
Rocket mortgage 391 0.03 883 / 1,000
Wells Fargo 554 0.05 840/1000
Freedom mortgage 288 0.04 817/1 000

Zillow Home Loans does not have a 2020 JD Power Satisfaction Rating. However, the lender received only one complaint with the Federal Bureau of Consumer Protection in 2020. This is significantly less than the number of complaints received against major competitors.

Mortgage Products at Zillow Home Loans

Zillow has options if you’re looking for a new home purchase or refinancing your existing mortgage.

According to the lender’s website, you can apply for three types of home loans:

  • Ordinary loan – These mortgages are usually supported by Fannie Mae and Freddie Mac. Zillow offers fixed rate mortgages for 15, 20 and 30 years, but does not seem to offer adjustable rate mortgages. The minimum down payment is 3% and you will usually need a minimum credit rating of 620 to 680 for a regular loan.
  • FHA loan – These loans are supported by the Federal Housing Administration. They require a minimum credit rating of 580 and a minimum down payment of 3.5%.
  • VA credit “These loans are available to active duty military personnel, veterans, reservists, National Guard members and eligible spouses. VA does not set requirements for a minimum credit score, but many lenders require a minimum score of 580-620. VA home loans do not require any down payment or private mortgage insurance (PMI), and have lower closing costs.

The lender’s website does not provide information on USDA loans, large loans, or mortgages. And unfortunately, you have to fill out the contact form and launch the app to confirm the availability of these products.

Where can I get a mortgage with Zillow Home Loans?

Zillow Home Loans is currently licensed in 43 states. Company No available in:

  • Hawaii
  • Maine
  • New Jersey
  • New York
  • Vermont
  • West Virginia
  • Wyoming

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

  • Arizona
  • California
  • Kentucky
  • Missouri
  • Montana
  • Nevada
  • New York
  • Tennessee
  • Texas
  • Washington state

Borrowers who do not have a branch in their state can work with Zillow Home Loans online and by phone.

Is Zillow the Best Mortgage Lender for You?

According to customer reviews, Zillow Home Loans offers fast and hassle-free lending. It is also known to employ highly qualified and friendly loan officers.

Despite the lender’s opacity on mortgage rates, its costs are on average lower than some of its major competitors.

Also, the lender doesn’t have many branches, so you should only apply if you are comfortable with managing the mortgage process online.

Since Zillow does not openly advertise credit requirements, you need to fill out a contact form and launch the app to see if you are eligible.

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