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Is Guaranteed Rate a Mortgage Broker?

If you are in the process of a home purchase, you probably heard about different kinds of mortgage lenders and brokers, and Guaranteed Rate is probably one of them. But is this company a lender or a broker? I will explain this in this article.

Is Guaranteed Rate a mortgage broker? The answer is no. Guaranteed Rate is a mortgage lender company headquartered in Chicago. This lender offers different kinds of mortgages, and it’s all available online.

Illustration of the house 

If you haven’t heard about Guaranteed Rate, one of the fastest-growing lenders, you probably haven’t purchased a home in recent years. To find out more about this lender, keep reading.

Guaranteed Rate Is a Mortgage Lender, Not a Broker

As we already mentioned, Guaranteed Rate is a mortgage lender, meaning it is a financial institution that offers its own money and products. A mortgage broker, on the other hand, is a person or institution that acts as an intermediary between borrowers and lenders, offering someone else’s mortgage liens. Another difference is that mortgage brokers make money by charging a fee for their services, while lenders make money on interest rates and closing costs, among other things. Guaranteed Rate offers different kinds of mortgage loans, some of which are federally backed, like VA and FHA liens.

Take a look at the difference between brokers and lenders.

Mortgage broker●      They work with many lenders
●      You can easily compare many options
●     It may happen you pay less when hiring a broker
●      Brokers can be paid by lenders
●      You may end up paying a fee
●      Not all lenders work with brokers
Mortgage lender●      You apply directly to a lender who is issuing a loan
●      You will have more control over the process
●      You will not have to pay for broker’s fees
●     You may get a better rate
●      You may lose time until finding the right lender
●      You will have fewer options when choosing a lender
●     You may not have access to some lenders who are only working with brokers

Guaranteed Rate It Is One of the Best Online Lenders Available

Guaranteed Rate offers a fully online mortgage application experience. Borrowers can apply for a mortgage online, submit the paperwork, even pay closing costs, and finish the process. If some borrowers have questions, they have loan officers available by phone or in person to explain the whole process. Of course, you can consult the best mortgage books, but nothing is better than having someone explain the process face to face.

Loan Types and Other Products

If we take a look at Guaranteed Rate loan types and products, we could say it has a good offering. This lender offers all kinds of liens and other financial services. Borrowers can put the minimum down payment of 3%, and they need a FICO score of at least 620. Also, criteria are more flexible for government-backed loans, where you need a credit score of 580 and a down payment of 3.5% for FHA and no down payment for VA. Here are all the services this lender offers:

  • Conventional,
  • HELOC mortgage,
  • Interest only,
  • FHA and VA,
  • USDA,
  • Jumbo,
  • Refinance,
  • Fixed-rate and adjustable,
  • Renovation.

Guaranteed Rate Rates and Fees 

This lender offers both fixed and variable or adjustable rates mortgages. Fixed rates mean your rate will not change during the years you have a mortgage, and they offer 30 or 15 years loans. On their website, you can see how high the rate is on a daily basis. Currently, the national average fixed rate for 30 years loans is 6.02%, while for 15-year loans, the rate is 5.21%. If we look at adjustable rates, the current national average is 6.56% for seven years ARM and 6.59% for ten years ARM loans.

You can get personalized rates on their website without applying for a mortgage, similar to a calculator. This lender will pull a soft credit check to calculate your rate, but this will not negatively affect your credit score. If you continue with the application, then Guaranteed Rate will ask for a full credit report.

When it comes to adjustable rates, you can choose between five, seven, and ten-year loans. In terms of fees, Guaranteed Rate doesn’t offer their lenders fees on the website. However, for most lenders, these fees are between 2% and 5% of your loan. 

Illustration of the home with mortgage written.

Is Guaranteed Rate a Good Choice?

If we take a look at the services and products they offer, we could say that this lender is a good choice. It offers transparency on its website and during the whole process. You can choose whether to finish the whole process online or in person. They have over 500 branches in all 50 states. It is a company with excellent reviews and a good reputation, and there are not many things not to like about this lender.

However, it is always advisable, before applying for a loan, to ask for quotes from other companies as well, so you can compare the rates and apply at the lender that fits your financial situation the best. Just make sure when asking for quotes that these companies will not ask for full credit score reports because then you will have limited time for closure before this check affects your score. At Guaranteed Rate, you can get a personal credit check without affecting your score.