Blue Spot Home Loans Review 2023

How Bankrate scored Blue Spot Home Loans

To determine Blue Spot Home Loans’ Bankrate Score, Bankrate’s editorial team rated it and other lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. (Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews.) We derived its overall score by considering three basic factors:

• Affordability: Blue Spot Home Loans boasts competitive rates against Bankrate’s averages. It has a varying fee structure; you’ll need to talk to a loan officer to learn what costs you might be responsible for covering at closing.
• Availability: Blue Spot Home Loans has expanded its reach to more than 40 states and Washington, D.C., and it offers a very diverse set of loan options.
• Borrower experience: The lender has an A+ rating from the Better Business Bureau.

• Methodology

  Bankrate’s expert editorial team collects lender information through a variety of methods. We contact lenders directly, and we also turn to regulatory filings and to assessments by third parties. Our research takes into account three main factors – affordability, availability and borrower experience.

  Bankrate’s reporters and editors have decades of experience covering the mortgage industry. They’re skilled at gathering information through interviews and by scouring regulatory filings. Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Here’s how we assess each of the categories:

  • Affordability. Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) a lender’s lowest advertised annual percentage rate (APR) based on Bankrate’s sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors and 2) established-customer discounts or incentive pricing, when applicable.
  • Availability. Another factor is how quickly your loan application will be approved, and how many loan programs the lender offers. So we evaluate approval and closing timelines and diversity of loan products.
  • Customer experience. Finally, we delve into what it’s like to deal with the lender as a consumer. We look at the lender’s application process and availability of customer service support. We also consider the results of J.D. Power’s 2022 Mortgage Origination Satisfaction Survey.

  Bankrate’s editorial team confirms the accuracy of data at the time of publication. Our team is dedicated to maintaining the timeliness of information – the mortgage industry is changing constantly, so we regularly revisit these reviews to update them.

  Bankrate’s methodology page spells out our rating process in greater detail.

Affordability: 5/5

Affordability differs from lender to lender, so comparing costs is key. You’ll need to consult with a Blue Spot Home Loans loan officer directly to learn what rate you might qualify for. The lender’s fees vary by state.

Availability: 5/5

This factor can make the overall mortgage application process smoother or more challenging. Blue Spot Home Loans (and Guild Mortgage) operates in the majority of states, but be sure to confirm availability before you go too far down the road with a preapproval. Among its loan products, this lender offers conventional, jumbo, FHA, VA and USDA mortgages. For some government loans, you’ll likely need a higher credit score than what’s required by other lenders.

Borrower experience: 4.3/5

Know what to expect when you work with a specific lender. Blue Spot Home Loans’ parent company has been around for several years and currently has an A rating from the Better Business Bureau. One of many highlights: The lender makes the final stage of the loan process a digital experience with Smart Close, which allows you to sign the majority of your closing documents electronically.

How to apply for a mortgage with Blue Spot Home Loans

You can apply for a purchase loan or refinance on the Guild Mortgage website, in person at a branch or by calling 800-971-3864.

Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Blue Spot Home Loans

If you’re looking to refinance your mortgage, Blue Spot Home Loans and Guild Mortgage offer both rate-and-term and cash-out options. When you’re ready, you can get a rate quote and apply online.