Mr. Cooper Mortgage Review 2020
Editorial Note: Parts of this article were reviewed by a lender to ensure accuracy prior to publication. The overall conclusions, recommendations and opinions are the author’s alone. The information in this article is accurate as of the date of publishing.
Mr. Cooper is a top 25 mortgage lender by origination volume headquartered in Dallas, according to Home Mortgage Disclosure Act (HMDA) data from the Consumer Financial Protection Bureau (CFPB). The independent mortgage company originated 84,000 loans in 2019, as reported by the CFPB.
Mr. Cooper offers a variety of mortgage lending products, services and technologies to make the homebuying process more rewarding and less worrisome.
Working with Mr. Cooper
Mr. Cooper is licensed to lend in all 50 states and the District of Columbia, Puerto Rico, Guam and the U.S. Virgin Islands. There are no physical branches, which means applications are completed by phone or online.
The company’s mortgage lending process includes an online prequalification tool and a digital Loan Tracker that allows borrowers to keep up with the status of their loan from applying to closing.
Mr. Cooper borrowing requirements
The minimum credit score that Mr. Cooper will accept depends on the loan type. Generally speaking, the credit score minimums for some common loan types are:
- 580 for FHA loans
- 620 for conventional and VA loans
- 740 for jumbo loans
Manual underwriting is available for government-backed loans, which may allow borrowers with unique financial circumstances more flexibility.
Mr. Cooper provides home loans for a variety of property types, including:
- Single-family homes
- Multifamily homes (two to four units)
Mr. Cooper mortgage products
- Conventional loans, which typically require a 3% down payment.
- Jumbo loans, which may require a minimum 20% down payment.
- FHA loans, which require a minimum 3.5% down payment.
- VA loans, which have a 0% down payment option.
- Rate-and-term refinances, which often are used to lower a borrower’s interest rate and monthly payment amount.
- Cash-out refinances, which allow homeowners to tap into their available home equity.
- FHA streamline refinances, which have minimal documentation and underwriting requirements.
- VA interest rate reduction refinance loans (IRRRLs), which is a streamline refinancing program for military service members, veterans and eligible spouses who want a new VA loan with better terms.
Mr. Cooper special mortgage programs
The mortgage application process
- How to apply. Prospective homebuyers can get started by getting prequalified online. Those who prefer human interaction can contact (877) 479-9810 to have a representative walk them through the process.
- Disclosure process. Once you’ve been prequalified, you can move onto the mortgage preapproval process, which involves a more thorough review of your credit history and finances. You can follow the status of your application with Mr. Cooper’s digital Loan Tracker and upload documents as requested. You can also download and e-sign disclosures through the portal.
- Submitting loan for approval. Once you’ve put in an offer on a home and the seller accepts it, you’ll go through the full mortgage application process, which involves underwriting. You’ll also have the opportunity to lock in your mortgage rate for 45 days at no cost.
- Final approval. Mr. Cooper will order a home appraisal, you’ll order a home inspection and the underwriting team will work on your final approval and clear you to close.
- Closing. Once you have the green light to close on your loan, you’ll schedule a date and time for your mortgage closing day. You’ll exchange money and sign documents at your closing to finalize the transaction.
- Servicing. Mr. Cooper services its loans after closing. Borrowers can make mortgage payments and get access to customer service online or through the mobile app.
Communication during the process
When getting prequalified or initially applying for a Mr. Cooper mortgage, borrowers will first talk to a mortgage professional. From the initial loan application all the way through submitting for final approval, borrowers can call their mortgage professional and check their dashboard for updates.
When it comes to available methods of communication, Mr. Cooper tries to be very flexible, offering a variety of options, including video chat, email and phone. Borrowers can also check their digital Loan Tracker to keep up with any outstanding documentation needs.
Pros and cons of a Mr. Cooper mortgage
- Multiple fixed-rate and adjustable-rate loan options
- Offers government-backed loans
- Offers a rewards program for homebuyers and sellers
- Provides a digital mortgage process
- No available home equity products
- Doesn’t offer USDA loan or non-qualified mortgage options
- No physical branches for in-person interaction