The process of closing a mortgage can be daunting, especially for first time home buyers.
Mr. Cooper is an online home lender and home loan servicer that has redefined the mortgage process.
Their commitment to customer service and a variety of loan options has helped them differentiate themselves from traditional home lenders.
What is Mr. Cooper?
Formerly Nationstar Mortgage LLC., Mr. Cooper has a much more laid-back, approachable tone than traditional brick-and-mortar financial institutions.
Since their rebranding, Mr. Cooper’s mortgage specialists have been praised for explaining products and assisting with the application process. This is especially helpful for first-time home buyers.
Mr. Cooper appeals to borrowers who prefer to make financial decisions online. Their focus on a digital experience has made them stand out from traditional lenders.
They do not have any physical locations, meaning the entire process is completed online and through mortgage professionals.
Mr. Cooper has not made a complete transition to an online application process. Borrowers must begin by completing a brief questionnaire on the website.
This will include providing your contact information and consent for a customer service representative to contact you by phone, email, or text.
Once you speak with a Mr. Cooper representative, your application will move forward in the process.
If you are concerned that your credit score may disqualify you for a loan, Mr. Cooper is a fantastic option.
The minimum credit score requirements for most loans are 620, and the down payment is typically 20% of the overall loan amount.
However, the requirements are more lenient for FHA loans.
Borrowers must have a credit score of at least 580, a 3.5% down payment, and up-front and monthly mortgage insurance.
It is important to note that Mr. Cooper makes no guarantees regarding estimates, decision times, or loan closing times. This can be affected by a variety of factors, including state of residence.
If you have any questions, you can discuss with your assigned mortgage professional at any point in the process.
What types of loans are offered through Mr. Cooper?
Mr. Cooper offers competitive rates and a wide range of options for borrowers.
Loan options include traditional fixed-rate mortgages, adjustable rate mortgages, and jumbo mortgages, which are loans larger than $2 million.
They also offer loans on a variety of property types, such as:
- single family
- multi-family, and
Vacation homes and secondary properties may be considered depending on the situation.
At this time, Mr. Cooper does not have any options for manufactured homes.
There are also options for those seeking a government-backed mortgage. Mr. Cooper’s manual underwriting on government-backed loans allows for more flexible loan approval decisions.
Mr. Coopers offers FHA loans, VA loans, HARP loans and more.
How do you close a loan through Mr. Cooper?
Mr. Cooper’s needs-based consultative approach means you must speak to a mortgage professional in order to begin the application process.
One of Mr. Cooper’s representatives will contact you following your completion of the brief questionnaire on the website. They can help determine the best loan type for you and assist with any inquiries. You can contact your mortgage professional at any time for updates and information.
After the initial phone call, the application process has officially begun. You can track the progress of your application through Mr. Cooper’s Digital Loan Tracker feature on the mobile app or website.
This feature will allow you to see what stage of the loan application process you are in and determine what documents are needed. The Digital Loan Tracker allows you to use a phone or tablet camera to upload documents. Through this feature, you can also conveniently e-sign disclosure forms.
Once all the documents are received and Mr. Cooper receives intent to proceed, you are able to lock the rate whenever you choose.
After the rate has been locked, Mr. Cooper will assign a single point of contact for the remainder of the loan process. This contact will order appraisals, coordinate applications, and oversee the final approval.
After final approval, you are able to close the loan.
A processor will contact you to schedule closing with a settlement agent or mobile notary.
You will be able to choose the time and location of your closing.
What are the benefits of using Mr. Cooper?
There are several points to consider before closing a loan through Mr. Cooper.
Consider the following points to know if Mr. Cooper is right for you:
- Educational tools and resources: Mr. Cooper’s commitment to service includes a variety of educational tools, which includes calculators and educational materials about which loan type is right for you. Mr. Cooper’s online app also makes it easy to keep track of your application status, review necessary documents, and manage your mortgage. The app has a handy swipe to pay feature and a tool to check your FICO score for free.
- Extended service hours: Typical home lenders are only open from Monday to Thursday. Based in Dallas, Mr. Cooper’s customer service center is open from 7 a.m. to 8 p.m. CST Monday through Thursday, 7 a.m. to 6 p.m. CST on Friday, and 8 a.m. to 2 p.m. CST on Saturday. The extended hours are an effort to position themselves as a leading service provider.
- Assistance from licensed mortgage professionals: By speaking with one of Mr. Cooper’s mortgage professionals at the start of your application, you are able to receive a thorough analysis of your home loan needs. This professional is available through the process and can advise on any lingering questions.
- No physical locations: Mr. Cooper has no physical locations and conducts all business through its website and via customer service communication. Those who prefer to conduct business in a traditional bank may want to consider other options.
- Lack of transparency: If you are interested in shopping around for mortgage rates, this can be difficult through Mr. Cooper. Specifics about credit requirements and loan origination fee costs are not readily available online. Borrowers must call and speak with a representative in order to understand what a loan would look like for them.
- Nationstar Mortgage reputation: Prior to rebranding themselves as Mr. Cooper, Nationstar Mortgage LLC. had a questionable reputation. Since 1997, Nationstar Mortgage LLC. accumulated 23 positive BBB reviews and a whopping 137 negative BBB reviews. The majority of the complaints were in regards to difficulty communicating with agents. However, since transitioning to Mr. Cooper, they have a renewed commitment to customer service and ease of communication.
Mr. Cooper’s online process, devoted customer service team, and unconventional hours make them a convenient and flexible option for those looking to close a mortgage.
However, the lack of transparency regarding pricing and loan eligibility can make it difficult for those shopping around for a mortgage.
If you are interested in Mr. Cooper for your home loan, be sure to speak with one of their representatives or a financial advisor.