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Conventional: 620
FHA: 580
Minimum credit score
3%
Minimum down payment (Conventional)
Available in all states
State availability
Loan products offered | Conventional, FHA, VA, Refinance/Cash-out refinance, Investor loans |
---|---|
Minimum credit score | Conventional: 620 FHA: 580 |
Minimum down payment (Conventional) | 3% |
State availability | Available in all states |
NMLS # | 3013 |
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Do you prefer a lender that doesn’t require face-to-face meetings? If so, Newrez may fit the bill. Newrez handles all aspects of your mortgage application online or over the phone, and if a notary is needed, it’ll send one to your home or business.
But its selection of home loans is basic, offering only conventional, FHA and VA loans and an investor loan. You won’t find any specialized loans like jumbo loans, renovation or construction loans or reverse mortgages here.
Nor will you find any home equity loans or home equity lines of credit (HELOC). Instead, you can apply for a cash-out mortgage refinance with Newrez, but this usually involves more paperwork than a home equity loan or HELOC.
While its loan choices are slim, it appears that individual loan officers may be able to help you with customized lending solutions, including SMART loans for borrowers looking to consolidate debt.
Newrez presents itself as a middle-of-the-road lender, offering mortgages for average to high credit borrowers. It doesn’t advertise any special programs, like state programs for low-income borrowers or down payment assistance. If you’re a first-time homebuyer or have lower credit, your best bet will be an FHA or VA loan with the company.
As with most lenders, to qualify for a home loan with Newrez, you’ll want to show:
While Newrez doesn’t list its fees online, we spoke with a loan officer who informed us the company charges a $1,250 lender’s fee. Also known as an origination fee, this fee may vary depending on the state.
While we’ve seen origination fees as low as $750, Newrez’s fee is pretty typical — although some lenders will completely waive these fees. Remember, you can always ask a lender to waive or reduce their fees, especially if you have a loan disclosure from another lender to negotiate with. They might be willing to reduce fees to get your business.
Also, expect to budget about 2% to 5% of your loan’s total amount for closing costs that typically include:
As of July 2022, over 1,100 customers on the Better Business Bureau (BBB) website have given Newrez a 2.28 out of a 5-star rating scale. Accredited with the BBB since 2009, Newrez has an A+ business rating — but with 638 consumer complaints registered in the past three years.
Customer reviews of the company are widely mixed. While many customers have left glowing reviews of individual loan officers on the Zillow real estate website, hundreds of others on the BBB site and WalletHub have complained about months-long mortgage refinancing delays, rate locks unexpectedly expiring or terrible service.
As with most lenders, we recommended calling Newrez directly on 888-673-5521 to get prequalified and determine if you want to work with the company before doing a full application online.
But if you’re ready to apply for a home loan with Newrez, follow these steps:
If you’re ready to fill out Newrez’s online application, we’re happy to report that it has a minimum of forms and fields to fill, making it a lot less painful than other online applications we’ve encountered.
When applying for a mortgage with Newrez, be prepared to provide the following information and documents:
Newrez isn’t the only lender on the block. There’s an entire range of lenders to suit a variety of homebuyer preferences. For example, if you’re after a fully digital mortgage experience with a minimum of hand-holding, Better, Rocket Loans and Beeline are popular choices for millions of Americans.
On the other hand, if you prefer to visit a local branch and bring in your paperwork the old-fashioned way, you might want to go with a lender like Guaranteed Rate, Freedom Mortgage or even a local bank or credit union.