Promise Home Loans Reviews

At the time of publishing, there was no Home Mortgage Disclosure Act rate data for Promise Home Loans — likely because the company is new. The company does post rate indices on its website, showing rates for conventional, jumbo, FHA, VA and USDA loans. You can request a personalized rate quote by visiting the company’s website and answering a few short questions.

Keep in mind that interest rates are affected by several factors, including a borrower’s credit score and debt-to-income (DTI) ratio. Borrowers with higher credit scores and lower DTI ratios are typically offered the lowest rates.

Promise Home Loans provides a digital application that can be completed online. You can complete a home loan application by visiting the company’s website and clicking the “Apply Now” button on the homepage.

The application begins by asking if you plan to purchase, refinance or get cash from your equity. For home purchase applications, you’ll need to input information about the home’s purchase price and your down payment amount. For refinance and HELOC applications, be prepared to give an estimate of your home’s value and your current mortgage balance. In addition, Promise Home Loans will request permission to pull your credit report.

The company may ask for other personal information, depending on the loan you are applying for. This may include financial information (e.g., bank account balances) and employment information (e.g., how long you’ve been with your current employer). You may also be required to submit certain documentation, like retirement account statements and prior years’ tax returns.

Once you start an application, Promise Home Loans will provide the contact information for a mortgage loan officer who can assist you through the process. The company advertises a digital process that can result in faster closing times.

Promise Home Loans application features

The company offers conventional and government-backed mortgages, including FHA, VA and USDA loans. You can also refinance your existing mortgage or open a HELOC with Promise Home Loans. Borrowers 62 and older may apply for reverse mortgages, as well. Loan terms are flexible and can range between 15 and 30 years.

Refinancing

Mortgage rates have been hovering at highs not seen in the past decade. For this reason, fewer borrowers are choosing to refinance.

However, at the time of publishing, refinance rates have dipped slightly. You may consider refinancing today if rates continue to decline and you are able to secure a lower rate than you currently have. Refinancing could lower your mortgage payment or save you borrowing costs in the long run.

HELOC and home equity loans

Promise Home Loans offers a home equity line of credit (HELOC), which allows homeowners to draw on their available equity as needed. The company does not specify the terms on its website, but most HELOCS have draw periods of five or 10 years. The repayment period may range from 10 to 20 years.

You may consider opening a HELOC if you anticipate needing access to cash over the next few years. Some borrowers keep a HELOC open in case of an emergency, while others may use it to complete home improvement projects.

A HELOC is different from a home equity loan because you don’t receive a lump sum upfront. Instead, you can draw on the line of credit as needed. Also, HELOCs typically have variable interest rates, which could rise or fall over time.

Promise Home Loans does not state borrower requirements on its website. In general, in order to qualify for most conventional loans, you need a credit score of 620 or higher. You also need to offer a 3% down payment. Your down payment and other factors determine how much house you can afford.

Government-backed mortgages usually have lower credit score requirements than conventional loans. For instance, you may only need a credit score of 500 to qualify for an FHA loan.

Down payment requirements are also usually less for government-backed loans. If your credit score is less than 580, you’ll likely need to offer a 10% down payment on an FHA loan. VA loans and USDA loans have no down payment requirements.

National mortgage requirements by type

Promise Home Loans states on its website that it does not charge upfront fees. This includes no application fee or credit report fee. After you apply for a home loan, the company should give you a Loan Estimate document outlining all potential fees and charges.

Check the Loan Estimate for closing costs, which can add up to between 2% and 5% of the loan amount. Closing costs include appraisal fees, tax fees, title insurance and prepaid expenses. Before the closing, you’ll receive a finalized list of costs in the Closing Disclosure form.