Is Zillow Lenders legit

Financing
1

Hello guys,

I am currently working with Zillow (Lender), and everything seems to be going smoothly. The interest rate of 6.57% seems reasonable, but I noticed they charge an origination fee of $1500, which seems quite high to me. Is anyone else here working with them? I would like to know about your experience with the process and whether you were able to successfully close.

2

Get a quote from a reputable bank. Make sure you give them your best estimate. US Bank was the most competitive alternative I looked at, but only after I discovered lower estimates. When I tried to see if Zillow could match or surpass the offers from US Bank, their customer service was slow to respond, and eventually the loan officer was unable to improve the estimatenwhich by that point had grown somewhat expensive in comparison to three other estimates I had received because of this.

3

An origination fee of $1500 appears to be on the higher end. While it’s common for lenders to charge an origination fee, it usually ranges from 0.5% to 1% of the loan amount.

Understanding the Fee

Break down the $1500 fee to see what it covers. Does it include other charges such as underwriting, processing, or application fees?

Shop Around

Given the potential high cost of the origination fee, consider exploring offers from other lenders. You might find better rates and lower fees elsewhere.

Negotiate the Fee

Don’t hesitate to negotiate the origination fee with Zillow. They may be open to lowering it, especially if you have a strong credit profile.

Consider Other Lenders

Although Zillow is a convenient option, it’s important to compare offers from various lenders. Local banks, credit unions, and online mortgage providers often offer competitive rates and fees.

Key Factors to Consider When Comparing Lenders:

  • Interest Rate: Both the interest rate and fees will impact the total cost of the loan.
  • Closing Costs: Compare overall closing costs, including title insurance, property taxes, and appraisal fees.
  • Loan Terms: Review the loan terms, such as repayment period, prepayment penalties, and points.
  • Customer Service: Consider the lender’s reputation for customer service and responsiveness.

Final Note

The mortgage process can be intricate, and understanding all associated costs is crucial. Take your time to shop around and ask questions to ensure you’re making an informed decision.

4

I’m currently working with Zillow (Lender) and, so far, everything has been smooth. They offered me an interest rate of 6.57%, which seems reasonable, but I was surprised by the $1500 origination fee, which feels quite high. Has anyone else worked with them? I’d love to hear about your experiences with the process and if you were able to successfully close. Any insights would be greatly appreciated!