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Navy Federal Credit Union Mortgage Review 2023

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At a glance

Navy Federal Credit Union

Editor's take

Navy Federal is a large national player with a twist: As a credit union, it’s a nonprofit. But that doesn’t mean it has stodgy technology. Navy Federal’s online experience is quite sophisticated, and its customer service scores are high.

Bankrate Score
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5.0
Rating: 5 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, VA, Military Choice, Homebuyers Choice, refinancing

Credit Good

Min. credit score required

Undisclosed

Location

Nationwide availability

Available in all U.S. states

Dollar Coin

Min. down payment

3% for conventional conforming loans, none for VA loans

At a glance

Navy Federal Credit Union

5.0

Rating: 5 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, VA, Military Choice, Homebuyers Choice, refinancing

Location

Nationwide Availability

Available in all U.S. states

Credit Good

Min. credit score required

Undisclosed

Navy Federal Credit Union overview

Navy Federal Credit Union is a credit union and full-service lender specializing in loans for military members, veterans and their families. Founded in 1933, the credit union is headquartered in Vienna, Virginia, and serves more than 12 million members and operates 355 branches worldwide. In addition to a broad range of loans, Navy Federal provides loan servicing, title services and real estate services, and offers banking products, credit cards, auto loans, student loans and personal loans. It also offers customized financing options for members with its own portfolio products.

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Bankrate insight

Navy Federal incentivizes borrowers with bonuses and deals. Case in point: Members who pair with a real estate agent through its RealtyPlus tool can get cash back after closing on their home.

Pros and cons of Navy Federal Credit Union

Pros
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    Allows up to two rate relocks if interest rates decline

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    Offers cash back for using its real estate services

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    Provides rate-match guarantee or pays $1,000

Cons
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    Membership required (only available to current/veteran military and family)

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    No FHA or USDA loans

Our Editor’s Take on Navy Federal Credit Union

Navy Federal is a large national player with a twist: As a credit union, it’s a nonprofit. But that doesn’t mean it has stodgy technology. Navy Federal’s online experience is quite sophisticated, and its customer service scores are high.

How Bankrate scored Navy Federal Credit Union

To determine Navy Federal Credit Union’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: Navy Federal Credit Union is a nonprofit, which means you could have access to more competitive rates. Like many lenders, however, you’ll be responsible for paying an origination fee on your loan.
  • Availability: This large lender operates nationally and specializes in loans for military members and their families.
  • Borrower experience: Navy Federal has a 24/7 stateside contact center, providing round-the-clock member service. J.D. Power gives the lender high marks for customer satisfaction.

Affordability: 5/5

Loan cost is a deciding factor for many borrowers.  The affordability nature of loans differ from lender to lender, so comparing costs is key. Overall, Navy Federal Credit Union’s mortgage rates are competitive. It charges a 1 percent origination fee but offers the option to waive the fee in exchange for a higher interest rate. The credit union doesn’t charge processing or underwriting fees, however, and there’s no cost to relock your rate on purchases or refinances. (As part of its Freedom Lock feature, you can relock your rate up to two times if rates improve.) Note: For most VA loans, you’ll be responsible for paying the VA funding fee. The credit union’s VA loan option allows the seller to contribute to closing costs, up to 4 percent of the value of the home.

Availability: 5/5

Availability factors can make the overall mortgage-application process smoother or more challenging. Navy Federal Credit Union serves 12.1 million members and operates 355 branches worldwide, providing conventional loans as well as VA loans, Military Choice loans and Homebuyers Choice loans, along with options to refinance your existing mortgage. The credit union also offers investor loans.

Borrower experience: 5/5

Navy Federal Credit Union has been in business for 90 years. While it hasn’t been rated by the Better Business Bureau, it carries a rating of 4.7, or “Excellent,” from Trustpilot. J.D. Power breaks out Navy Federal into a separate category along with USAA and Veterans United. While Navy Federal ranks behind those two VA specialists, its score was higher than that of Rocket Mortgage or any other traditional lender.

Navy Federal Credit Union allows you to get prequalified and preapproved and to apply for a mortgage online. You can communicate with the lender through secure messaging online, via chat or through social media. You also can sign certain loan documents using e-sign, and pay your mortgage through the credit union’s app. Navy Federal’s HomeSquad platform lets you connect accounts to verify assets and track your loan status. If you have questions about a loan, Navy Federal has a 24/7 stateside contact center, providing round-the-clock member service.

How to apply for a mortgage with Navy Federal Credit Union

You can apply for a purchase loan or a refinance on Navy Federal’s website. The company’s process is similar to other online lenders.

In some cases, borrowers can get preapproved instantly through Navy Federal’s home loan management platform, HomeSquad. Generally, though, you can expect a response from a loan officer within six to 10 days after applying. For a purchase, closings typically take 30 days. Refinance closings can take 30 to 45 days.

Here are some tips for streamlining the application process:

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.

Gather personal and financial documents. With any lender, you must supply documentation proving your income, assets and debts. These documents typically include:

  • Pay stubs from at least the past 30 days
  • W-2s from the past two years
  • Proof of any other income sources (such as bonuses or commissions, child support or rental revenue)
  • Account statements, including checking, CDs and retirement savings, from at least the past two months
  • Documents detailing any loans you currently have
  • Letters explaining any new loans you’ve taken out recently
  • Letters from anyone giving you a gift to use for a down payment
  • Court records if you’re recently divorced or dealt with something like bankruptcy or foreclosure
  • Contact info for your landlords if the lender wants to verify payment
  • ID (such as a driver’s license or passport), so lenders can verify your identity and that you’re a U.S. citizen. Foreign nationals can get financing, but it’s much more complicated.

Those who are self-employed might also need to include additional information and undergo an income audit. This might include asking an accountant to verify your income is stable by speaking with customers; reviewing business records, like P&L statements; or taking other steps.

Provide details about the property. If it’s a purchase mortgage, you’ll need to supply the address of the home you’re buying and submit to an appraisal. If you’re refinancing, you may or may not need an appraisal.

Refinancing with Navy Federal Credit Union

Navy Federal Credit Union tends to offer competitive refinance rates, and its refinancing options include the VA Interest Rate Reduction Refinance Loan (IRRRL, or streamline refinance). You can apply for a refinance online using your membership login.

Frequently asked questions about Navy Federal Credit Union

What is Navy Federal's rate-match guarantee?

Navy Federal offers a rate match guarantee: If you find a better rate at another lender, the lender will match it – or give you $1,000 after you close with the competing lender. To qualify for Navy Federal’s rate match guarantee, you’ll need to lock in your rate with the rival lender before you submit your rate match request. A loan estimate and the rate lock disclosure from the competing lender must be received within three calendar days of locking with Navy Federal. In addition, Navy Federal allows borrowers to relock their rate for free if rates fall before closing.

Compare Navy Federal Credit Union to other lenders

Navy Federal Credit Union

Rating: 5 stars out of 5
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5.0

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USAA

Rating: 4.6 stars out of 5
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4.6

Bankrate Score
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Read full review
Veterans United Home Loans
Rating: 4.8 stars out of 5
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4.8

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Read full review

Loans offered

Conventional, jumbo, VA, Military Choice, Homebuyers Choice, refinancing

Loans offered

Conventional, jumbo, VA, fixed-rate; refinancing

Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; refinancing

Min. credit score required

Undisclosed

Min. credit score required

640 for VA loans

Min. credit score required

620 for conventional loans, 620 for VA loans

Down payment

3% for conventional conforming loans, none for VA loans

Down payment

None for VA loans

Down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans

Nationwide availability

Available in all U.S. states

Nationwide availability

Available in all states

Nationwide availability

Available in all U.S. states