An entirely online application process and automated underwriting could simplify your next purchase.
Shopping for a mortgage isn’t just time-consuming — it’s also tedious. Once you’ve selected a provider, you then gather required loan documents, submit your application and wait weeks for a decision on your pending mortgage.
Or you could take care of the process yourself online, from the comfort of your home. This is the convenience you could find with a mortgage through Close Your Own Loan, a division of the Peoples Bank.
|Name||Close Your Own Loan|
|Description||An online lender powered by Magnolia Bank.|
|Loan types||Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA|
|Minimum down payment||3%|
|Origination fee||Varies by state|
On its website, Close Your Own Loan states that its loan fees vary by state. However, you can use its free online loan calculator to estimate the potential costs of your loan, including your interest rate, underwriting fee, appraisal fee and the cost of obtaining your credit report.
Keep in mind that the online loan calculator assumes a credit score of 740 or higher and a debt-to-income ratio below 43%. The real costs of your loan may vary depending on your credit score, location and debt-to-income ratio.
While Close Your Own Loan is not an accredited business with the Better Business Bureau, its parent company, Magnolia Bank, is. Both receive an A+ rating from the BBB.
Do I qualify for a loan with Close Your Own Loan?
To qualify for a home loan with Close Your Own Loan, you’ll need a minimum credit score of 620. You’ll also need to be ready with a down payment of at least 3%.
What can I expect with a Close Your Own Loan mortgage?
Before applying for a Close Your Own Loan mortgage, here are a few things to take note of:
- High maximums. Access conforming loans of up to $417,000 and super conforming loans of up to $625,000. Maximum nonconforming jumbo loan amounts vary depending on your state.
- Flexible repayments. Close Your Own Mortgage offers fixed-rate, interest-only home loans that allow you to pay just the interest for the first 10 years of the loan.
Are there any special programs?
You may qualify for one of Close Your Own Loan’s special mortgage programs or discounts:
- FHA loan. Federal Housing Administration loans are available to those with a minimum credit score of at least 580 and offer down payments as low as 3.5%.
- VA loan. Designed for qualifying veterans, servicemembers and their families, VA loans offer home loans with no down payment or private mortgage insurance required.
- $1,000 rate guarantee. If you find a more competitive interest rate with a different provider within 30 days of closing, Close Your Own Loan will pay you $1,000 cash.
Pros and cons
- Fully online application. Unlike other providers that boast easy online applications only to ask for in-person follow-ups, Close Your Own Loan’s process really takes place online.
- Automated underwriting. Close Your Own Loan automates its underwriting to assess your documentation and provide a decision within 48 hours.
- Range of loans. From fixed-rate financing and ARMs to FHA and VA loans, Close Your Own Loan can provide financing that best suits your needs.
- $1,000 best-rate guarantee. Close Your Own Loan is so confident about its competitive interest rates, if you find a better interest rate with another provider within 30 days of closing, it pays you $1,000.
- Limited support. Close Your Own Loan’s customer support is only available by email and by phone.
How do I apply?
1. Go to Close Your Own Loan’s site and select the type of loan you’d like to apply for and your state of residence. Then click Get Rates.
2. Enter the purchase price of the property you’re interested in, your down payment and the loan program you’d like to apply with. Click Get Rates.
3. Review your loan proposal. Click Select Interest Rate and Go To Application.
4. Create an account with Close Your Own Loan with your full name, address, phone number and email. Create a username and password, and click Create User.
5. Review Close Your Own Loan’s interest rate disclosure and select Yes. Click Continue.
6. Review the items you’ll need to submit to Close Your Own Loan, including recent pay stubs, personal tax returns and a copy of your driver’s licence.
7. Gather the necessary documents and submit them to Close Your Own Loan by fax, email or uploading to your online account. Close Your Own Loan prefers that you submit documentation within 48 hours of your initial application request.
After you submit your documents, you’re assigned a loan coordinator to assist you with the rest of the home loan process. Keep track of your updated progress through your online account.
You’ll need to meet the following criteria to be eligible for a Close Your Own Loan mortgage:
- Credit score of at least 620.
- Minimum 3% down payment.
- The documentation you may be required to submit includes:
- Pay stubs from the past two months.
- Bank statements from the past two months.
- Personal tax returns from the past two years.
- W2s or 1099s for the previous two years.
- A copy of your driver’s licence.
- A copy of your homeowners insurance policy (if refinancing).
- Current mortgage statements (if refinancing).
I got the loan. Now what?
Stay on track after closing your loan with the following tips:
- Sign up for autopay. Streamline your mortgage by automating payments through your Close Your Own Loan account.
- Get support. If you have any questions about the status of your home loan, reach out to your loan coordinator or call 800-276-2965.
For those seeking autonomy and convenience when applying for a mortgage, Close Your Own Loan can offer an entirely online application process, quick turnaround and competitive rates alongside personable customer service.
But before making a decision, make sure you look into other loan providers near you to find the best loan and rate for your needs.