In a Nutshell
- Competitive rates
- Top notch customer service
- Trustworthy and transparent
- Not licensed in all states
- No live chat customer support
Zillow at a Glance
|Direct lender or marketplace||Direct lender|
|Loan Types||Purchase and refinancing|
|Featured Loans||Conventional loans (fixed-rate and adjustable-rate), FHA loans, VA loans, USDA loans|
|Repayment Terms||10, 15, 20, 30 year fixed, 3/1, 5/1, 7/1 ARM|
|Minimum Down Payment||3%|
|Minimum Credit Score||640|
|Best For||First-time home buyers|
Zillow is an Equal Housing Lender that provides mortgage loans for the purchase of new homes and refinancing options for current homeowners. With a variety of loan products available, including conventional loans, VA loans, FHA loans, and USDA loans, Zillow home loans have flexible repayment terms, low or no down payment, depending on the loan type, and competitive rates.
Additionally, Zillow has a manual underwriting procedure. While this may take a little longer, it's actually a good thing for borrowers because it means each case is looked at personally and decided on a case-by-case basis. That gives borrowers a better chance of finding approval than the generic, automated process offers.
Zillow is a particularly good choice for new home buyers for two reasons. For one thing, the Zillow home loan team is reputed to be supportive, dedicated, and highly-qualified at what they do. Based on consumer reviews and a built reputation, Zillow loan officers are efficient, ready to go to bat for you, and knowledgeable in all the right areas.
What’s more, Zillow spells everything out very clearly on the website. So, for first-time buyers who aren’t familiar with the process of buying a new home, don’t know the terminology, and aren’t clear on the details, Zillow gives them all the information they need to proceed with confidence.
Types of Loans/Products
Zillow home loans offer several loan products for both new purchases and current homeowners looking to refinance. Purchase loans available include:
- Conventional loans
- VA loans
- FHA loans
- USDA loans
- Home Possible loans
- HomeReady loans
Zillow has both fixed-rate and adjustable-rate mortgages. Additionally, you can find refinancing options that include:
Zillow home loans offer both mortgage loans and refinancing options for single-family homes, townhomes, manufactured homes, and condominiums.
- Credit required: 640
- APR: 3.40%-4.57%
- Down payments: 0%-3% (requires PMI if lower than 20%)
- Loan terms: 10, 15, 20, 30-year fixed 3/1, 5/1, 7/1 ARM
The Application Process
Surprisingly, Zillow does not have a totally automated application process, as you would expect there to be from such a big name in the real estate sector. Instead, you can start your application online. But you’ll have to finish it over the phone. Here’s how it works if you want to go via the lending marketplace route:
- Fill out the online application form.
Start your application with a basic online form. This includes questions like, do you want to purchase or refinance a home, are you a first time home buyer, where are you holding in the buying process, do you have a real estate agent you’re working with, and what kind of home are you looking for.
- Get results.
Zillow will generate local lender recommendations based on your application answers.
- Make contact.
A local lender will get in touch with you (or you can get in touch with others from the list) to receive personalized rate quotes. It’s nice that Zillow only gives your number out to a single lender, so you’re not inundated with phone calls from endless brokers or agencies.
Alternatively, you can get a mortgage loan directly through Zillow. This is a more straightforward process that offers the benefit of having a professionally-trained loan officer handle your case from start to finish. If that's the case, after filling in the online application form, a Zillow rep will reach out to you to finalize your application process. Borrowers who are interested in continuing directly with Zillow will be sent a digital disclosure form. That's a convenient step in the process. Zillow's underwriters manually verify each applicant's employment income and assets and will look into property in question to verify that it meets requirements.
Rates and Fees – The Bare Basics
Zillow offers some very low rates. It does charge an origination fee, though, so watch out for this one. Ask before you get too deep into the process how much this will be and if there are any other fees associated with the overall mortgage loan process you should know about.
In terms of loan rates, Zillow's are very competitive. It offers a variety of different loan types, and you can even find low or no downpayment loans. You can get a conventional loan for 3.40%-4.57% APR. Plus, Zillow home loans also have rate-lock offers in different time frames to accommodate more borrowers.
Zillow offers several repayment options, a big benefit for homebuyers who like to have their options left open. You can choose between 10, 15, 20, or 30-year fixed-rate loans. Alternatively, Zillow offers adjustable-rate mortgages (ARMs) that range from 3/1, 5/1, and 7/1 variations. Which is the right one for you will depend on how much you could afford to put down, how much you can pay per month, and how fast you want to repay your loan.
Help & Support
As mentioned, borrowers will get a loan office to deal with their case from start to finish. This is personalized customer support at its best. If you have questions before you’ve been assigned someone, you can reach out to customer support via the phone or with the online contact form. Unfortunately, there’s no live chat.
How Zillow Compares
|Minimum down payment||0%-3%||From 0%||Usually 3%, but zero-down options are available|
|DTI ratio||29%-50% typically||43%||N/A|
|Fees||Origination fee,||Origination, closing||Origination|
|Repayment terms||10, 15, 20, 30 fixed, 3/1, 5/1, 7/1 ARM||10, 15, and 30-year fixed||10, 15, 20, 25, 30 years|
Zillow is a reliable name in the real estate industry, so expanding its offerings to the home mortgage sector has been generally viewed as a win-win for everyone. With mortgage and refinancing loans boasting low rates, flexible repayment terms, and personalized customer service, Zillow is certainly settling into the new industry admirably.
Q: Do Zillow lenders bombard you with phone calls until you pick up?
A: No. Only one local lender will receive your contact information. You have the choice to contact more lenders that are recommended by Zillow if you want. But only one lender will be given access to your information.
Q: How will I know how much to take out for a mortgage loan?
A: Zillow has several online tools that can help first-time buyers figure out how much they should take out for a mortgage loan. To begin with, there is an affordability calculator. This will help you understand exactly how much you can afford to pay towards a mortgage based on your income, expenses, and other factors. Then, the mortgage calculator will help you figure out how much money you should take out for your loan.
Q: What is homeowners insurance, and do I need it?
A: Homeowners insurance is a kind of insurance policy that covers the costs of several damages, including fire, burglary, and structural damage. Homeowners insurance is generally a requirement if you want to get approved for a mortgage loan.
Q: What are closing costs?
A: Closing costs are a broad category of fees you may have to pay when purchasing a home. They're paid at the time of closing the transaction and include things like appraisal, attorney fees, escrow fee, home inspection, origination fee, property tax, survey fee, and more.
10975 El Monte St.
Overland Park, KS 66211
Zillow Home Loans, LLC, an affiliate of Zillow Group, Inc., is a rapidly growing national provider of online mortgage lending services across the United States. The company became a Zillow Group company in 2018, and it's committed to delivering a seamless and streamlined mortgage experience. Homebuyers can use the company's advanced technology, competitive rates and transparent process to find a mortgage solution that suits their needs.
Zillow Home Loans, LLC’s NMLS ID #10287