Who’s Freedom Mortgage for?
When you’re looking for the best mortgage company for your needs, it’s important to weigh what each company has to offer. Freedom Mortgage is especially good for:
- First-time buyers: Freedom Mortgage is one of our favorite lenders for first-time buyers for a few reasons. It offers a wide variety of mortgage types and terms and you cannot complete online applications with Freedom Mortgage. You will need to complete your application with a loan officer, which can offer you the opportunity to learn from an expert.
- Buyers who may relocate: Freedom Mortgage serves all 50 states — it’s a great option for buyers who may relocate in the future. Working with one lender in multiple mortgage processes may allow you benefits such as reduced fees for current customers. It may be an advantage to already be familiar with Freedom Mortgage’s process and requirements because it can make future home-buying processes easier and quicker to navigate.
- Veterans: Many lenders offer VA loans, but Freedom Mortgage sets itself apart by offering multiple VA loan options. If you’re a qualified veteran or veteran’s spouse, Freedom Mortgage can help you obtain a VA loan for your initial mortgage. Freedom Mortgage also offers products that may help you reduce your mortgage rate and monthly payments through refinancing.
Freedom Mortgage Products
Freedom Mortgage offers several mortgage types — here’s an overview of each.
Conventional loans are a common mortgage type that allow you to repay your mortgage during specific time periods — these range from 5 to 30 years. These loans are not insured or guaranteed by the federal government, so they often have fewer eligibility requirements. Conventional mortgages require private mortgage insurance (PMI) if you make less than a 20% down payment on your mortgage.
FHA loans are insured by the Federal Housing Administration and financed through approved lenders, including Freedom Mortgage. This mortgage program allows down payments as low as 3.5%. To qualify for an FHA loan, the home you’re purchasing must meet certain requirements and the home’s value must be determined by an FHA-approved appraiser.
Jumbo mortgages allow you to purchase homes that exceed the maximum loan limits set by the Federal Housing Finance Agency. In most of the U.S., the maximum loan limit for 2019 is $484,350. This loan type is best if you want to purchase a more expensive home or if you’re buying in a very competitive market. Like conventional mortgages, jumbo mortgages are available in both adjustable and fixed mortgage rates.
If you select a fixed mortgage rate, the interest rate that is set on your mortgage when you secure your financing will be the interest rate you pay throughout the lifetime of your loan. If you select an adjustable rate, your interest rate is not set and may fluctuate throughout the lifetime of your loan. To qualify for a jumbo loan, Freedom Mortgage requires a 700 minimum credit score. You will also need to provide proof of your income and other financial details.
Refinancing your mortgage may help you reduce monthly payments and receive a lower interest rate. This is a great option if the current mortgage rate you are paying is higher than the rate you would receive on a new mortgage. Refinancing can also offer you lower monthly payments by allowing you to set a different repayment term.
USDA loans are guaranteed by the U.S. Department of Agriculture. These loans are only available for the purchase of homes in qualified rural areas. You won’t have to put down a down payment if you don’t want to, but you can get competitive fixed interest rates with USDA loans. To qualify, you must meet certain income requirements and the home you purchase must be your primary residence.
USDA Streamline Refinance
You can easily refinance your current USDA loan through a USDA Streamline refinance. This mortgage product is called a Streamline refinance because it has minimal requirements and allows you to refinance your mortgage without undergoing an extensive qualification process. You must be current on your payments and your original loan must be at least 1 year old.
The benefits of this refinance option may include lower interest rates and payments. Freedom Mortgage does not require a new credit review, home appraisal or inspection for a USDA Streamline refinance.
VA loans are guaranteed by the U.S. Department of Veterans Affairs for military members and their families. To qualify, you must meet service requirements set by the Department of Veterans Affairs. The benefits include 0% down payments, no minimum credit score requirements and no private mortgage insurance requirements. You may also qualify for a VA loan if you’re the surviving spouse of a qualified service member.
VA Cash-Out Refinance
VA cash-out refinances allow you to use your home equity to pay off high-interest debt such as student loans and medical expenses. If you use this refinancing option, your current mortgage will be replaced with this refinanced mortgage. A VA cash-out refinance means you’re not required to leave any equity in your home. After you are approved for this loan type, you will receive your money after the closing date.
This loan type is available to existing VA mortgage or conventional mortgage customers. If you do not currently have a VA loan and want to use this mortgage type, you will still need to meet the Department of Veterans Affairs’ service requirements. As with any refinance product, this mortgage type also offers lower interest and monthly payments.
The Closing Process
Once you’ve placed an offer on a home, you will want to have an inspection performed on your home. This inspection will identify any issues with the house and allow you to address these before you close on your home. You can negotiate with the seller to determine responsibility for addressing any issues you discover.
Next, it’s time to get all of your funds together. At closing, you’ll be required to submit a check for your down payment and any closing costs. Your down payment could be 3.5% or more of your home’s purchase price, depending on your lender’s requirements and your financial situation. You can expect your closing costs to be anywhere from 2% to 5% of your home’s purchase price. These costs include taxes and insurance fees due shortly after closing. Your money will then be transferred to the appropriate parties, including the seller and lender.
At this point, you can expect to receive a monthly statement from your mortgage servicer. This statement will show you your principal and interest payments. It will also state your loan balance and any changes that are made to your payment, such as a change in your mortgage rate.
Freedom Mortgage Credit Score Minimum
Your credit score plays an important role in your mortgage application and approval process. When you submit an application for a loan, the lender will pull a credit report on each borrower. Lenders will examine your credit report to see if you make on-time payments and how much debt you have.
Your credit score represents how reliable you are when you borrow money. Many factors go into your credit score, including your payment history, your total debt and how much credit you have available. Your credit score can also help you qualify for lower mortgage rates. Generally, the higher your credit score, the more likely it is that a lender will offer you a more competitive rate.
Freedom Mortgage requires a minimum credit score of 620 to qualify for most of its mortgage products.
Before you begin the application process, it’s a good idea to gather the documents you will need to submit to lenders. Freedom Mortgage requires you to have the following documents for mortgage preapproval:
- Your name, date of birth, residential address and Social Security number
- Employment information for the past 2 years
- W-2 or 1099 forms for the past 2 years
- Federal tax returns for the past 2 years
- Your most recent pay stubs
- Details about your assets and debts
If you’re self-employed, you will need to provide:
- Your last 2 years of personal and business tax returns
- A year-to-date profit and loss statement with a balance sheet
There are several ways to contact Freedom Mortgage. The Freedom Mortgage website will prompt you to call to speak with an agent if you want to receive a quote or ask a general question. You can also fill out a contact form and a representative will call or email you directly to answer your questions.
Freedom Mortgage’s licensed loan officers available to assist you when you’re going through the mortgage process. Its website offers a search function to find a loan officer local to you. Freedom Mortgage also offers a dedicated telephone line to reach a loan officer who can answer your questions. This is a great option if you don’t live near a local branch with loan officers on site.
You can also call customer service representatives directly if you have a question about your mortgage. Freedom Mortgage’s customer service team is available Monday to Friday from 8 a.m. – 10 p.m. EST and Saturday from 9 a.m. – 6 p.m. EST.
Is Freedom Mortgage Right for You?
Freedom Mortgage is a widely accessible mortgage lender with several mortgage products — and can be helpful if you think you may want to refinance down the line.