Who’s SoFi Mortgage for?
A SoFi mortgage is a great option for borrowers who are comfortable working with online lenders instead of having in-person locations and loan officers to visit. The benefits of using SoFi as your lender are numerous, and many of its mortgage customers are preexisting customers of its other products. While SoFi may not be the best option for borrowers hoping to obtain a government-backed loan, it has numerous products that fit the needs of most borrowers.
Whether you’re seeking lenders for first-time buyers or unique refinancing options, SoFi may be the right lender for you.
SoFi Mortgage Products
SoFi offers a variety of conventional mortgage types to its borrowers, including:
30-year fixed mortgage: Fixed mortgages are loans that come with a set interest rate that does not change during the lifetime of your loan. This mortgage type offers predictable payments that never fluctuate.
15-year fixed mortgage: Like the 30-year fixed mortgages, 15-year fixed mortgage offer the benefit of predictable monthly payments with a set interest rate. With this mortgage type, you can expect higher monthly payments. You may also be eligible for a lower interest rate than you would receive with the 30-year fixed mortgage. This mortgage type offers the opportunity to pay off your mortgage in a shorter period of time. You also pay less over the lifetime of your loan than you would with a longer term mortgage.
7/1 adjustable-rate mortgage (ARM): A 7/1 ARM mortgage offers the benefit of both fixed and adjustable-rate mortgages. With this mortgage type, you can expect a fixed-interest rate for the first 7 years of your loan. This is followed by an interest rate that adjusts yearly based on current mortgage rates. SoFi’s 7/1 ARM loan offering comes with a term of 30 years, over which you will pay full principal and interest payments.
5/1 ARM (interest-only): This unique mortgage type offers many benefits. Like the 7/1 ARM mortgage, you can expect to pay both fixed- and adjustable-interest rates over the lifetime of your loan. For the 5/1 ARM, you pay a fixed rate for the first 5 years, followed by an interest rate that changes yearly based on current mortgage rates. This loan carries a 30-year term, over which you pay the interest only for the first 10 years. For the remaining 20 years of the loan, you’ll pay full principal and interest payments. This is a great option if you’re buying a forever home and want to make lower payments for the first 10 years.
Jumbo mortgage: Jumbo mortgages are mortgages that finance more than the allowed amount set by the government. With SoFi, you can obtain a jumbo mortgage of up to $3 million. As with its other mortgage options, SoFi only requires 10% down payments on its jumbo loans. SoFi does not require private mortgage insurance (PMI) on its jumbo mortgages. With a SoFi jumbo loan, you can select from the mortgage types and terms of the conventional mortgage listed above.
Mortgage refinance: If you’re looking to refinance your mortgage, SoFi may be able to offer you a competitive rate. Refinancing is worth looking into if your financial situation is better now than it was when you first bought your home. It may allow you to save money over the long run by offering lower interest rates than your original mortgage.
Cash-out mortgage refinance: Cash-out mortgage refinancing allows you to turn your home equity into cash. With this mortgage type, you can refinance by borrowing more than you currently owe on your home and keep the difference. This is a popular option for individuals who plan to renovate. Some borrowers use this option to consolidate and pay off some of their other high interest debts. If you’re considering this option, reach out to one of SoFi’s mortgage loan officers to discuss whether it is the best option for you.
Student loan cash-out mortgage refinance: If you’re considering a cash-out mortgage refinance to pay off your student debt, this is another option to look into. As with the standard cash-out refinance program, you will be able to tap into your home equity while refinancing your mortgage. If you select this option, the proceeds of your loan are directly distributed to your student loan lender. There are some requirements with this option, including that you must pay off one student loan in full with your proceeds. Again, consider consulting with one of SoFi’s mortgage loan officers to discuss whether or not this option is right for you.
Average Days to Close a Loan
SoFi’s average amount of time to close a mortgage is 28 days.
Your closing process begins after your offer on a home is accepted. You will then enter a negotiation stage with the seller. During this time, focus on getting your home inspection and appraisal completed. This allows you to understand the condition the home is in and what it is worth. You can then work with the seller to determine who will be responsible for any necessary repairs on the home. Be aware that some lenders require certain repairs to be performed prior to closing if there are health and safety concerns.
Once you have worked through these items, you’ll work with your lender to receive final loan approval. This is the time when you and the seller sign closing documents, prepared by both the lender and the closing agent. You’ll receive a closing disclosure, which outlines the loan terms, closing costs and other necessary items of information. Review this document carefully and ask any questions you may have before you sign the loan.
After you pay monies that are due, like closing costs, and if everything is in order, you and the seller will both sign the closing documentation. Finally, the title of the home will be transferred to you and you will be given the keys to your new home.
SoFi Mortgage Credit Score Minimum
SoFi requires a minimum credit score of 620 to qualify for its mortgage products.
Credit scores play an important role for each lender considering a borrower. Your credit score is a part of the credit report that lenders will pull when you apply for a loan. Your score is based on a number of factors in your credit report, including your payment history and the amount of debt you owe.
Lenders want to see that you are a responsible borrower who makes on-time payments on your loans. The higher your credit score is, the more likely you will be approved for a loan. If you have a high credit score, lenders may also feel comfortable offering you a lower interest rate on your loan.
There are a number of documents that you will need when you apply for a loan. When applying for pre-approval on a mortgage with SoFi, you can expect to provide:
- Your full name and contact information
- W-2 forms from the 2 previous years
- Recent paycheck stubs
- Your most recent federal tax return
- A complete list of your debts, including minimum payments and balances
- A list of your assets (car titles, real estate holdings and mutual fund statements)
- Proof of payment for your current rent or mortgage
Since SoFi is a digital lender, it doesn’t have brick-and-mortar branches. This means that all of your customer support will be handled either online or by phone. SoFi’s customer service team is based out of California and Utah.
General customer support is available at 855-456-7634 7 days a week: Monday–Thursday from 4 a.m. to 9 p.m. PST and Friday–Sunday 4 a.m. to 5 p.m. PST.
For home loans support, customer service representatives are available at 844-763-4466 Monday–Friday from 6 a.m. to 6 p.m. PST. No customer support is available on Saturday or Sunday.
You can also email SoFi’s home loans support team at email@example.com.
Additionally, SoFi offers a free mobile app that is available for both Android and Apple devices. You can use the app to receive a rate on your home purchase or refinance. If you become a SoFi member, you can use the app to keep track of your existing loan(s), apply for new accounts and connect with other members of the SoFi community.
Is SoFi Right for You?
SoFi is among the best mortgage companies available in the online lender space today. Since SoFi does not charge an application fee or pull a hard credit inquiry on preapproval applications, it doesn’t hurt to see if you qualify. However, you should keep in mind a few key factors before selecting your lender:
What type of mortgage do I want? If you don’t qualify or if you’re not interested in any government-backed loan options, SoFi can offer you a number of conventional mortgage options. However, if you are eligible for an FHA, USDA or VA loan, you may want to seek out a lender who offers those products.
Do I live in a state that SoFi serves? Unfortunately, SoFi cannot offer mortgage products to borrowers in every state. Be sure to check if it serves your state before moving forward.
Am I comfortable with an online lender? While working with an online lender has many benefits, it’s not right for everyone. The benefits of working with online lenders often include an efficient process and lower associated costs. You will not be able to speak with your lender face-to-face about your mortgage options, however. If personal interaction is something you’re not willing to give up, focus on lenders that have brick-and-mortar locations near you.
No matter what you decide, get the best rate by comparing lenders. Don’t be afraid to get quotes from several before deciding which one is right for you.