Guaranteed Rate Mortgage Review 2023

How Bankrate scored Guaranteed Rate

To determine Guaranteed Rate’s 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: True to its name, Guaranteed Rate offers competitive rates compared to Bankrate’s averages. It charges lender fees on most loans.
• Availability: Guaranteed Rate is a national lender with mortgage solutions for borrowers with varying credit scores and other qualifying factors.
• Borrower experience: J.D. Power scored Guaranteed Rate highly for customer satisfaction, but the lender maintains average ratings from customers with 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

Loan expensiveness is a deciding factor for many borrowers. The affordability nature of loans differ from lender to lender, so comparing costs is key. Guaranteed Rate regularly updates its mortgage rates online with real-time estimates based on credit score, location and type of property. These include estimates of closing costs and monthly mortgage payments. It’s a relatively painless process that doesn’t require handing over your information or reaching out to a loan officer. Guaranteed Rate’s GRaffordable calculator also allows you to see a full snapshot of loans available with a line item for lender fees. In most cases, the lender appears to charge between $1,290 and $1,440 in fees, though these are waived on VA loans.

Availability: 4.5/5

Availability factors can make the overall mortgage-application process smoother or more challenging. Guaranteed Rate provides the complete slate of standard mortgage options, from conventional to government-insured loans. The lender works with borrowers nationwide.

Borrower experience: 4.6/5

Customer experience factors can help you know what to expect when you work with a specific lender. Guaranteed Rate has been in business for more than 20 years, having established a well-known brand with over 1 million customers to date. The lender is a Better Business Bureau-accredited company with an A+ rating, and J.D. Power ranked it above average for mortgage origination customer satisfaction in 2022. Little perks like a $250 credit towards closing costs, for applicants who submit paperwork within eight hours, are a nice touch.

How to apply for a mortgage with Guaranteed Rate

Guaranteed Rate’s online loan process is designed to appeal to tech-savvy homebuyers. You can receive a preapproval letter in around 15 minutes online, and the lender’s website features plenty of handy calculators to help you set a budget. The new Same Day Mortgage program offers full approval within a business day, plus a $250 lender credit, to applicants who provide the requested paperwork within eight hours of locking in their rate. The lender offers a mobile app and an online tool to help you apply for a mortgage from home.

Here’s how the application process works in general.

1. Run the numbers. Make sure that your credit score, debt-to-income ratio, and savings are in good shape. A strong credit score can help you to secure a competitive interest rate, saving you thousands over the life of your loan.
2. Secure your preapproval letter. To get pre-approved with Guaranteed Rate, you’ll complete an application detailing your income and assets. Guaranteed Rate will then conduct a credit check. The process takes 10-15 minutes. If you pass muster, you can contact your loan officer to get the preapproval letter.
3. Shop for a home. Work with a local realtor to compare homes and make an offer to purchase when you’re ready.
4. Book an inspection and appraisal. Even if your new home looks flawless, it’s important to arrange a home inspection to check for safety and quality issues as well as an appraisal to confirm the market value of the house. Guaranteed Rate will work with you and your Realtor to coordinate this latter step.
5. Complete underwriting and final approval. During the underwriting process, Guaranteed Rate will verify your financial information as well as the property details. An underwriter will issue a final approval. Guaranteed Rate offers a Same-Day Mortgage that can approve you in just one day.
6. Close on the loan. At this stage — which could be in as little as 10 days after you’re approved — you’ll pay your down payment and closing costs and sign the remaining papers. Guaranteed Rate offers FlashClose, which allows you to sign most of your documents online and finish your closing process in as little as 30 minutes.

Refinancing with Guaranteed Rate

Guaranteed Rate does not share a detailed list of costs for refinancing, as these will vary based on borrower. However, there is a helpful calculator tool on its website to help you estimate your new payments and break-even point. The lender also regularly updates rates for refinancing.