What Guaranteed Rate Offers

Guaranteed Rate offers the following types of home loans:

  • Conventional
  • FHA
  • VA
  • Adjustable-rate
  • Interest-only
  • Jumbo
  • Reverse mortgage
  • Renovation loans
  • Specialty loans
  • Home equity line of credit

The lender also offers personal loans, which may come in handy if you need to make home improvements, buy furniture for your new home or consolidate debt.

Loan Terms

Guaranteed Rate’s fixed-rate mortgages are available in 15- and 30-year terms. The lender’s adjustable-rate mortgages (ARMs) are available in 5-, 7- or 10-year terms.

Refinancing

If you’ve accumulated equity in your home, a cash-out refinance could help you access cash when you need it. You replace your existing mortgage with a larger loan, and you’ll receive the difference in cash after subtracting closing costs.

Guaranteed Rate offers a cash-out refinance as well as a VA loan cash-out refinance.


Minimum Borrower Requirements

Borrower requirements vary with each loan program and lender. If you want to apply for a home loan with Guaranteed Rate, here’s what you’ll need.

Credit Score

Guaranteed Rate doesn’t advertise its minimum credit score requirements, but it notes that lenders typically require a credit score of at least 620 to qualify for a conventional mortgage. For jumbo loans valued up to $1 million, you’ll usually need a credit score of at least 700 to qualify. If you plan to borrow more, the minimum credit score requirement may increase.

Debt-to-Income Ratio

Guaranteed Rate notes on its website that a debt-to-income (DTI) ratio of 50% or less is required to take out a conforming conventional loan. For a jumbo mortgage, many lenders require a DTI of 40% or less. You can offset these requirements with a larger down payment or by boosting your credit profile.

Down Payment

Guaranteed Rate doesn’t share its minimum down payment requirements, but it does note that some conventional loans allow you to put down 3%. If you can afford a down payment of 20%, you’ll avoid paying for private mortgage insurance (PMI).

FHA loans require a down payment of 3.5% with a credit score of at least 580, and VA loans don’t require no down payment. If you’re taking out a jumbo loan, your down payment may need to be as high as 20%.

Income

Lenders prefer borrowers with a steady income, so they usually require you to have been at your current job for at least two years. If you haven’t been at your current job for two or more years, then the lender must verify two years of your previous employment.


What Fees Will You Pay?

Guaranteed Rate charges an application fee of $150 for purchase and refinance loans. This amount doesn’t include other fees, such as the mortgage origination fee, discount points and processing and underwriting fees.

Guaranteed Rate says to expect to pay 0.5% to 1% of the mortgage loan’s principal to cover your origination fee.

VA loans require an upfront funding fee that ranges from 1.25% to 3.3%. The VA sets the fee—not lenders like Guaranteed Rate—and they are determined by your down payment and whether you’ve used a VA loan before.


How To Apply for a Guaranteed Rate Mortgage

You can apply for a mortgage via Guaranteed Rate’s website, by phone or at one of their in-person branches. If you already have a down payment saved, follow these general steps:

1. Get preapproved. To get preapproved, fill out an application with your name, current income and assets so the lender can determine how much you can afford. You’ll enter your Social Security number to run a credit check, and the loan officer will provide you with a credit report summary.

Guaranteed Rate’s “Digital Mortgage” feature allows you to complete this process in about 10 to 15 minutes, with the option of calling a representative if there are problems. If the completed application is approved, you’ll receive a preapproval letter.

2. Submit an offer.
After preapproval, you’ll work with a real estate agent to submit an offer on a home that meets your needs and suits your budget.

3. Appraisal, underwriting and closing.
If the seller accepts your offer, the home undergoes an appraisal. Also, the lender’s underwriter looks over all financial details before you’re cleared to close. After you’re cleared to close, you’ll sign and get the keys to move in.


What To Do if You Get Turned Down

If Guaranteed Rate denies your application, you still have options. Here are some steps you can take:

  1. Call the lender. If your loan application is denied, ask your loan officer for a detailed explanation and what you can do to improve your approval odds. If your credit history or credit score played a role in the decision, the lender is legally required to tell you why you weren’t approved.
  2. Review your credit. If your application was denied because of your credit score, it’s important to take action now to improve your score. If there were errors in your credit report, you can submit a dispute through all three credit reporting agencies.
  3. Wait. It’s possible that the issue was the timing of your application. If you haven’t been at your job long enough or had a recent bankruptcy or foreclosure, you may need to wait a few months or years before applying for a mortgage. Your lender may be able to provide guidance.

What People Are Saying About Guaranteed Rate

There are 310 mortgage-related complaints against Guaranteed Rate in the Consumer Financial Protection Bureau’s (CFPB) Consumer Complaint Database as of early June 2023.

The lender earned an A rating from the Better Business Bureau (BBB), though it received 3.49 out of 5 stars from about 175 consumer reviews. The complaints vary across different areas of the loan process, from preapproval to servicing.

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Alternatives to Guaranteed Rate

If you’re looking to shop around with different companies, Better Mortgage ranks highly on Forbes Advisor’s list of best online mortgage lenders. Here you can check out and compare Guaranteed Rate with other online mortgage lenders to ensure you’re picking the right lender for you.


Methodology

We graded Guaranteed Rate 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.