Sage Mortgage Review 2024

Since joining media company Red Ventures in 2020, Sage Mortgage has been expanding its business footprint into new states. The online mortgage lender underwrites its own loans but can also serve as a broker to connect borrowers to other lenders.

When it comes to its loan offerings, Sage Mortgage keeps things simple. Loans through the company fall into two categories:

• Home Purchase
• Home Refinance

Within each category, you may have additional options, depending on where you live and the property details.

Loan Types

For home purchases, Sage Mortgage offers conventional and U.S. Department of Veterans Affairs (VA) loans as well as some Fannie Mae and Freddie Mac loan products, according to a phone representative for the company. However, Federal Housing Administration (FHA) loans are not available at this time.

If you need to refinance, online reviews note that cash-out refinancing is an option. Based on review information, 15-year and 30-year terms are available for both home purchases and refinancing.

Before applying, you can use a mortgage calculator to determine which loan term will work best for you.

Loan Minimums and Maximums

Sage Mortgage doesn’t list any loan size requirements on its website. However, conventional and VA loans follow guidelines set by the government. Typically, that means—in 2023—a conforming loan can be no more than $726,200 in most counties or as much as $1,089,300 in certain areas with high costs of living.

If you need to borrow more than that, you’ll need a jumbo loan, which may or may not be available through Sage Mortgage. However, you can find these loans through other top mortgage lenders.

Loan Servicing

According to a phone representative, Sage Mortgage does all the work to set up loans for applicants. Then, they may service—or collect payments—for a few months before selling the mortgage to another provider. If that should happen, you will begin to make payments to a new mortgage servicer.

As with other lenders, not everyone will qualify for a loan with Sage Mortgage. Here’s a look at what the company will consider when determining whether to approve your application.

Minimum Credit Score

Although not listed on the Sage Mortgage website, a phone representative shared that the minimum credit score requirement for the company is 620.

Of course, companies often look at more than just your credit score, so there’s no guarantee meeting the minimum credit score requirement will qualify you for a loan. Boosting your score can help improve your chances of approval and may qualify you for more favorable rates.

Maximum Debt-to-Income Ratio

You’ll need to have a debt-to-income (DTI) ratio of 50% or less to qualify for a loan through Sage Mortgage, according to a customer service representative. That means your monthly debt obligations can’t exceed 50% of your gross monthly income.

Before applying for any loan, it’s wise to understand how much it’ll cost you. Unfortunately, Sage Mortgage doesn’t provide any fee disclosures online, but a phone representative provided the following information.

Application Fee

There’s no fee to apply for a home loan with Sage Mortgage.

Appraisal Fee

Borrowers will need to pay an appraisal fee, the cost of which varies by location, property size and a number of other factors. Appraisals are used to determine the market value of a home. Sage Mortgage works with an appraisal management company to locate and schedule services with local providers.

Origination Fee

The origination fee can depend on several factors. If you’re purchasing a home without a rate buydown, the fee at Sage Mortgage can range between $2,495 and $2,995, according to a company representative. However, some borrowers may be eligible for lender credits that could offset part of the cost.

Generally speaking, borrowers should typically expect to pay between 2% and 5% of the loan value in total closing costs—including the origination fee. That said, there are mortgage lenders with no origination fee that you can explore if you’re determined not to pay this additional cost.

For refinancing, Sage Mortgage says on its website that there are no upfront costs, and fees can be rolled into the loan. But if you’re purchasing a new home, expect to pay some closing costs up front.

Sage Mortgage uses a digital system to accept and process applications. You can expect the following process when you apply for a home purchase loan or a mortgage refinance through the company:

1. Create an account. Sage Mortgage asks you to first complete a form that covers what type of loan you need, the property’s location and your personal information. Once you complete this form, a loan officer will reach out with more details. You’ll also have access to an online dashboard.
2. Complete your application. You can complete the entire application online through Sage’s digital system. This includes providing information about your properties, employment and income.
3. Speak with a loan advisor. Once you’ve created your account, you’ll be assigned a mortgage loan originator. This advisor can provide more detailed information about the company’s mortgage options and rates. While the loan officer will reach out to you directly, within the dashboard, you have access to this person’s email address and phone number. There’s also an option to schedule a call.
4. Get preapproved. Sage Mortgage says that once you’ve provided initial information, you can receive a preapproval letter in as few as three minutes.
5. Find a property. If you haven’t already, at this point, you should locate the property you plan to purchase.
6. Upload documents. To gain final approval on your loan, you’ll need to provide supporting documentation such as income and tax forms. This paperwork can be uploaded online, so you won’t need to deal with paper copies.
7. Close on the loan. After Sage approves your loan, you’ll need to sign paperwork to close on the loan. This is often done in person at a local escrow company or title company.

With Sage Mortgage, you don’t need to have a property already selected to apply for a loan. The company has an option on its application for those interested in learning how much they can afford before they go house hunting.

Since Sage Mortgage also serves as a mortgage broker, if it can’t underwrite a loan for you directly, it’s possible the company may be able to find a lender who will. You can also add a co-borrower to your application to help boost your chances of approval.

If that doesn’t work, you could try another mortgage lender since each company has its own borrower requirements.

But, if Sage denies your application, you may need to clean up your credit, choose a less expensive property or increase your down payment before you can be approved for a mortgage.

Before using any mortgage lender, it’s always smart to see what current and previous customers have to say.

With Sage Mortgage, the customer experience seems to depend heavily on your loan officer. The reviews on real estate website Zillow are largely positive, with many people praising the responsiveness and professionalism of Sage’s loan officers. Many of these reviews also note that interest rates and fees were as expected or lower than expected.

Meanwhile, negative reviews often cite disorganized and inefficient company representatives, with some customers reporting they received multiple requests for the same information. Some negative reviews note that delays on the company’s end resulted in higher fees or rates for borrowers.

The government’s Consumer Financial Protection Bureau lists three complaints for the company, and the Better Business Bureau (BBB) has received four. Again, most of these are related to breakdowns in communication. Despite the complaints, Sage Mortgage maintains an A+ rating with the BBB.

Related: 8 Questions To Ask Your Mortgage Lender

We graded Sage Mortgage based on features that have a meaningful impact on the cost of a mortgage and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.

We award bonus points if a lender offers a specialty rate discount or mortgage product, a home equity product or maintains a fully online mortgage application process.

Our scoring method is broken down as follows:

• Interest rate. 20%
• Loan options. 20%
• Time to close. 20%
• Accessibility. 20%
• Customer service experience. 20%
• Bonus points. Up to 25 points

We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.