Magnolia Bank Review

ByBestmoney StaffJul.15, 2021
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In a Nutshell

Magnolia Bank is an online mortgage lender that offers loans for home purchase and refinancing. The company has access to thousands of different program options and uses a streamlined process to deliver low rates to each customer.


  • Minimal information required to get rates
  • Automated underwriter determines qualification in minutes
  • Cuts out the middleman


  • Must be comfortable with online loan applications
  • Minimum credit score of 620 required
  • Many steps involved before your loan payout

Magnolia Bank at a Glance

Loan Types

Purchase, refinance, cash-out refinance

Featured loans

FHA, HARP, VA, fixed, ARM

Repayment Terms

10- to 30-years fixed, 3-7 years adjustable

Minimum down payment

No minimum

Credit score

620+, recommended 740

Suitable For

Experienced homebuyers who want to cut out salespeople


Magnolia Bank prides itself on offering a “sales-free low-pressure environment,” which means you won’t be pushed to close a loan by salesmen you don’t necessarily trust; rather, you’re given loan options and you get to decide which one is right for you.

Suitable For?

  • Experienced buyers who want to cut out the middleman (salespeople) and save both time and money and feel comfortable handling the mortgage process online.

  • People who want upfront, fast, pre-approvals.

  • People with good to excellent credit and a debt-to-income ratio of 43% or less.

Loan Features

Magnolia Bank offers 2 kinds of loans: Home purchase and refinance. Within these broader loan categories are different types of loans, like FHA and VA loans.

Customers need to decide for themselves which loan is right for them; however, your choices will probably be narrowed down by the loans you actually qualify for. If you have a poor credit rate, you probably won’t qualify for a $500,000 10-year fixed loan. If all the different loan types are Greek to you, Magnolia Bank boasts a knowledgeable customer support team with professional loan processors that are available to guide you through the process and help determine which loan is right for your circumstances.

The Application Process

The application process is fairly straightforward and simple; what’s more, the website has a step-by-step guide that tells you exactly what to expect each step of the way.

The first step is to click on Get Rates, which directs you to a page where you fill out minimal information including the cost of the house and amount of down payment; then the system calculates a loans proposal for you, and you can choose from a selection of interest rates.

Once you find a loan and interest rate that suit you, you’ll be directed to the loan application. Part of the application requires you to submit the following documentation:

  • Last 2 pay stubs

  • W2 or 1099 of previous 2 years

  • 2 years of personal and business tax returns

  • Copy of driver’s license

  • Signed Borrower’s Certification and Authorization

  • For refinancing: Copy of homeowner’s insurance policy declarations page and current mortgage statements

It’s a good idea to gather this information before you find a loan and rate that you want, because once you find it, you only have 48 hours to submit all the documents.

Once you submit all the necessary items, you will be assigned a processor, who will be your go-to person throughout the application process. Your processor will first submit your application for pre-approval through the company’s automated underwriter, an advanced computer system that analyzes your income, credit, assets, and other things in order to assess if you qualify for the loan you want. Using the automated underwriter, pre-approval can take place within minutes instead of days or weeks.

Once your pre-approval is issued, your processor will order an appraisal from one of the company’s preferred appraisers. You’ll get the appraiser’s contact information and they will contact you within 24 hours to set up an appointment. Once the appraisal has been received, your processor will submit your loan for final approval, and you’ll receive a final underwriting decision within 48-72 hours.

You’ll then be emailed the final loan documents, and a notary will schedule a time to come to your house so you can complete all the signatures.

Throughout the application process, you can be in touch with your processor at any time

Pros and Cons

While some people may be hesitant to use an online mortgage lender, Magnolia Bank is a reputed FDIC bank that dates back to 1919. Magnolia Bank offers a number of benefits that other lenders don’t.

Once you’ve found your rate and want to see if you qualify, you’ll need to submit various documents, which will then be put through the company’s automated underwriter. The automated underwriter does all the work of a typical loan officer, but without room for mistakes. The software determines in minutes whether you qualify and can issue upfront pre-approval.

Magnolia Bank also prides itself on not using pushy salesmen, which relieves consumer pressure and cuts out additional costs like commission.

Rates and Terms -The Bare Basics

There are various rates and terms available, but the loan you choose really depends on your financial situation. Below are the loan types and terms that are available; rates vary according to many factors, including credit score, down payment, and more.  

  • 10-, 15-, 20-, 25-, 30-year fixed loans

  • HARP 15- and 30-year fixed loans

  • FHA 15- and 30-year fixed loans

  • VA 15- and 30-year fixed loans

  • 3, 5, and 7 ARM (adjustable rate mortgage) loans

Repayment Terms

Each loan comes with its own repayment terms, so even if 2 customers both opt for a 30-year fixed loan, their repayment terms will most likely be different. This is because the terms depend on the following factors:

  • The borrower’s credit

  • The amount of the loan

  • The amount of the down payment

  • The time—loan rates can literally change from day-to-day, so even 2 people with very similar financial backgrounds can get different repayment terms if they apply 6 months apart

Help & Support

When you begin your initial application, you’ll be assigned a Loan Coordinator who will handle your case and who you can contact directly. Once you submit all your paperwork, you’ll be assigned a processor, whose direct contact information will also be sent to you. You can contact both your Loan Coordinator and processor by email or phone at any time throughout the loan process.


If you’re in need of a home purchase loan or refinancing loan, Magnolia Bank is a good option, providing that you have a minimum credit score of 620. The main benefits of choosing Magnolia Bank are:

  • An automated underwriter

  • Access to thousands of loan options

  • A no-sales-pressure environment

  • Great rates  

  • Faster approval than typical lenders

Physical Address

794 Old Elizabethtown Rd

Hodgenville, KY 42748-9406

Visit Magnolia Bank

AboutMagnolia Bank