Guaranteed Rate Mortgage Review 2023

Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.

About Guaranteed Rate

Guaranteed Rate is an online lender that offers mortgages in all 50 US states and Washington, DC. It also has in-person branches in 47 states; it has no branches in Delaware, Vermont, or Wyoming.

Guaranteed Rate is a good choice for borrowers who don’t have a credit score. You can use non-traditional credit, like your rent or utility payment history, to qualify for a conventional or government-backed loan with this lender. If you do have a credit score, it’ll need to be at least 620 to qualify for a conforming loan from Guaranteed Rate. 

You can get the following types of home loans from Guaranteed Rate:

Is Guaranteed Rate Trustworthy?

The Better Business Bureau gives Guaranteed Rate an A+ rating. A strong BBB score indicates that a company responds effectively to customer complaints, is transparent about business practices, and advertises honestly. The lender also doesn’t have any recent public scandals.

In J.D. Power’s 2022 US Mortgage Origination Satisfaction Study, Guaranteed Rate ranked above the industry average in customer satisfaction. On its Zillow lender page, it has a 4.96 out of 5-star rating, based on over 21,000 customer reviews.

Guaranteed Rate Interest Rates and Fees

On its mortgage rates page, Guaranteed Rate will let you explore mortgage rates and monthly payments based on your purchase price, down payment, zip code, and other factors. 

In 2022, the average borrower who got a conventional mortgage from Guaranteed Rate paid $2,969 in origination charges, according to Home Mortgage Disclosure Act data. This is on the low end compared to other lenders.

Guaranteed Rate Overall Lender Rating

Feature Insider rating (out of 5)
Loan types 5
Affordability 4
Customer satisfaction 4.48
Trustworthiness 5
Total 4.62

Guaranteed Rate Pros and Cons

Pros Cons
  • Easily explore customized rates without providing personal info

  • Ranks high on J.D. Power’s customer satisfaction study and has great online customer reviews

  • You can apply with non-traditional credit, such as rent or utility payment history, if you don’t have a credit score

  • Available in all 50 states and Washington, DC

  • Has branches in 47 states so you can apply online or in person

  • Doesn’t offer USDA mortgages, home equity loans, or construction loans
  • No physical branches in Delaware, Vermont, or Wyoming

Guaranteed Rate FAQs

Is Guaranteed Rate a legitimate company?

Yes, Guaranteed Rate is a legitimate mortgage lender that’s been in business for over two decades.

What credit score do you need for Guaranteed Rate?

To get a conforming loan from Guaranteed Rate, you’ll need at least a 620 credit score.

Is Guaranteed Rate a direct lender or broker?

Guaranteed Rate is a direct lender. This means it originates its own loans, as opposed to a mortgage broker, which connects borrowers with multiple lenders to find the best fit.

How long does Guaranteed Rate take to close?

Once the seller accepts your offer and Guaranteed Rate approves you for a mortgage, you’ll probably close within 30 to 45 days.

How Guaranteed Rate Compares

Guaranteed Rate vs. Rocket Mortgage

Rocket Mortgage – Product Name Only is one of the best mortgage refinance lenders out there, and it’s a good choice if customer service is important to you. The lender ranked No. 1 in J.D. Power’s 2022 mortgage origination satisfaction study. It may also be a good choice if you’re a low-income or first-time homebuyer, since you may qualify for the lender’s ONE+ mortgage, which allows a down payment of just 1%.

But Guaranteed Rate has lower average fees than Rocket Mortgage and a wider range of mortgage options to choose from. If you’re looking to save money, Guaranteed Rate could be the better option.

Guaranteed Rate vs. Fairway Independent Mortgage Corporation

Fairway Independent Mortgage – Product Name Only is an affordable mortgage lender and one of the best online mortgage lenders available. It’s another good option if you’re looking for a smooth customer service experience. 

Guaranteed Rate and Fairway Independent have similar mortgage offerings and both rank high in customer satisfaction. In J.D. Power’s 2022 study, Fairway ranked No. 4 in mortgage origination satisfaction, while Guaranteed Rate was No. 8.

Because these two lenders are fairly similar, you might consider applying with both to see which one can offer you the better overall deal.

Why You Should Trust Us: How We Reviewed Guaranteed Rate

To review Guaranteed Rate, we used our methodology for reviewing mortgage lenders.

We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don’t have any recent public controversies.

Read the original article on Business Insider

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