Chase Mortgage Review 2022

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Chase Mortgage Review 2022

With millions of clients, Chase is the biggest bank in the United States. People having Chase bank accounts or credit cards may take the lender into consideration while looking for a mortgage because of the company’s widespread usage.

According to dollar volume, Chase is the third-largest mortgage originator and provides conventional, government-backed, and jumbo mortgages. Additionally, it runs its own mortgage program, the Chase DreaMaker Loan, which enables low- to moderate-income families to be approved for a home loan with as little as 3% down.

Higher income earners may be eligible for jumbo mortgages. The lender is a fantastic choice for current Chase clients since they can be eligible for additional savings depending on the balances of their bank and investment accounts with Chase.

Pros Explained

  • Relationship discounts for current clients: When a borrower obtains a mortgage via Chase, they may be qualified for rate reductions if they have a Chase bank account or a JPMorgan investment account. Depending on the balances in your accounts, you can be eligible for an interest rate decrease of up to 0.50%.
  • $5,000 closing guarantee: If you’re a Chase client purchasing a property, Chase guarantees that you’ll close promptly in as little as three weeks, or the lender will pay you $5,000.
  • If you use Chase’s DreaMaker mortgage—a program that enables you to pay as little as 3% down—you may be eligible to get $500 by finishing a homebuyer education course that has been authorized.

Cons Explained

  • does not make its income or credit criteria available online: You must submit your information and agree to a credit check to find out whether you qualify for a loan; Chase doesn’t disclose its minimum income or credit score criteria online.
  • Cannot finish the whole procedure online: Chase does not accept completely online mortgage applications, unlike other lenders. You can start an application on their website, but to finish the application and loan conditions, you’ll need to speak with a home loan expert in person or over the phone.
  • Offers no USDA mortgages: A USDA mortgage is a kind of house loan that lets you finance 100% of the cost of a home in a rural location. Although they’re a common choice for those with low incomes, Chase doesn’t provide this loan kind.

Not quite prepared to decide? Start your search for the finest mortgage lenders by checking out our recommendations.

Types of Mortgage Loans Offered by Chase

Chase offers five different types of mortgages, including jumbo mortgages, loans for people with lower incomes, and government-backed loans.

  • Chase offers both fixed-rate and adjustable-rate conventional mortgages (ARMs).The lengths of Chase’s fixed-rate loans are 15 or 30 years. The interest rate is initially cheaper with an ARM than it would be with a fixed-rate loan if you choose one. It could, however, alter with time. You may choose a 7/6 ARM from Chase, which means your interest rate is set for the first seven years. It may then be changed every six months after that.
  • DreaMaker: A DreaMaker loan requires a down payment as little as 3%. While this mortgage program has stricter income criteria than other loan alternatives, it also offers more flexible credit standards.
  • Jumbo loan: If you’re searching for a house with a bigger value, Chase’s jumbo loans can be a good choice. Chase lets you finance properties worth up to $9.5 million, whereas most other lenders restrict jumbo mortgages at $5 million or less.
  • Mortgages sponsored by the Federal Housing Administration (FHA): With an FHA loan, you may get a mortgage with as little as a 3.5% down payment.
  • Mortgage via the U.S. Department of Veterans Affairs (VA): Military veterans who meet the requirements may apply for VA loans. A house may be purchased by qualified buyers with no down payment.
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Chase Features and Benefits

Chase mortgages offer the following benefits:

  • Chase Homebuyer Award: In some regions, borrowers who apply for a Chase DreaMaker, FHA, or VA mortgage to purchase houses may be eligible for a grant of $2,500 or $5,000. The awards will be used to offset points and fees at the loan’s closure.
  • Low down payment options: The typical minimum down payment for a conventional mortgage is 5%, while the minimum down payment for an FHA loan is 3.5%. Chase does, however, offer a few loan programs that let customers put down as little as 0% for VA loans or 3% for DreaMaker loans.

Every state’s home buyer aid programs are included on Chase’s searchable website. There are programs that provide assistance with closing expenses or down payments.

How to Apply for a Chase Mortgage

You have two options when applying for a Chase mortgage: you may do it online or in person at a nearby branch. Chase estimates that in 2021, around 75% of its mortgage applications were made online.

Follow these steps to pre-qualify for a mortgage or finish a full application:

  1. Start early: According to Chase, you should start the mortgage application process around three months before you want to move into your new home.
  2. assemble the necessary documentation: submitting a mortgage application calls for a lot of paperwork. You’ll be required to provide copies of your W-2s, bank and investment account statements, pay stubs, and other supporting documents. You must also send your two most recent tax returns if you are self-employed. You may obtain a checklist from Chase to help you arrange your paperwork.
  3. The pre-qualification form must be completed: Pre-qualification for a home loan is available both online and in person at a nearby branch. Basic facts about you, your income, and the house you want to purchase are requested on the application.
  4. Review estimate: You will get a loan estimate from Chase that details the parameters of the loan, such as the monthly payment, interest rate, and other costs. Additionally, it will put you in touch with a home loan counselor that can assist you in comprehending the loan conditions and managing the following stages.
  5. Move forward: Inform your home loan counselor that you wish to proceed with the mortgage application if the loan suits your criteria and you locate a house you’d want to purchase.

Customer Service

Contrary to several mortgage lenders, Chase doesn’t provide round-the-clock customer support. Customer service may be reached via phone, secure messaging, or by going to a nearby branch. A Chase home loan expert is also available for appointments over the phone or in person. Nevertheless, only 36 states and the District of Columbia provide access to Chase’s advisers.

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You may reach Chase by phone at (800) 447-1101 or via a secure message. Hours of operation are:

  • EST hours are 8:00 a.m. to 8:00 p.m. Monday through Friday.
  • Saturday from 9:00 a.m. till 6:00 p.m.

Customer Satisfaction

Despite being a major bank and mortgage provider, Chase has gotten below-average ratings and evaluations from customers.

Chase placed fifth out of 23 lenders in the J.D. Power 2022 U.S. Primary Mortgage Origination Satisfaction Study. It performed better than the average for the sector.

Chase has earned negative customer ratings on independent review sites. Reviews of Chase’s other products as well as mortgages often included complaints about excessive wait times and inefficient customer service employees.

Regulatory Actions

Chase, like other significant lenders, has previously been the target of regulatory proceedings and class action lawsuits:

  • The Consumer Financial Protection Bureau (CFPB) filed a complaint in 2015 accusing Chase and Wells Fargo of participating in an unlawful compensation system for marketing services.
  • In order to resolve a probe into whether the lender charged minority borrowers greater interest rates than white clients, JPMorgan Chase agreed to pay $55 million. In 2017, the agreement was made public.
  • Chase made an announcement in 2022 that it would pay $11.5 million to resolve a class action lawsuit alleging that it failed to maintain escrow accounts in accordance with legislation in six states.

These kinds of problems are common for businesses with the size and market share of Chase. Chase’s past, however, emphasizes how crucial it is to thoroughly research loan agreements, keep an eye on your account, and shop around to compare rates and conditions from other lenders.

Account Management

You may manage your account, receive statements, and make payments online when you get a mortgage with Chase. Existing customers may manage their loans via the Chase smartphone app.

You can examine all of your accounts—including your mortgage—on one platform if you have other Chase accounts, such as credit cards or savings accounts.

Alternative Choices

Despite the fact that Chase is a well-known mortgage lender, customers should always shop around and evaluate their possibilities from other firms. Otherwise, you run the danger of having to pay a larger interest rate than you could.

Consider Rocket Mortgage if you’re searching for a lender that offers a digital experience. Rocket provides a variety of mortgage alternatives, including conventional, FHA, VA, and jumbo loans, just as Chase does.

Rocket Mortgage differs from Chase in that it closes loans quickly and has good customer satisfaction scores (it ranks second in the J.D. Power 2022 Mortgage Origination Satisfaction Study).

ChaseRocket Mortgage
Types of MortgagesConventional DreaMaker FHA VA JumboConventional FHA VA Jumbo
Average Time to ClosingDoes not disclose30-45 days
J.D. Power Ranking5/232/23

Choosing a Mortgage Lender

It’s important to make the correct mortgage lender choice when purchasing a house. Get estimates from several home loan providers before submitting an application to Chase—or any other lender. Compare your alternatives after taking into account:

  • The mortgage’s annual percentage rate (APR) determines how much you’ll have to pay in interest, charges, and other costs.
  • There are typically two types of loans available: fixed-rate loans and adjustable-rate loans. Because of their lower beginning rates, ARMs might be tempting, but the rates can rise over time. Mortgages with fixed rates, however, don’t fluctuate.
  • Repayment Term: Lenders provide a range of repayment alternatives. Mortgage loan lengths typically vary from 10 to 30 years. In exchange for a higher interest rate than if you choose a shorter loan term, a longer payback period lowers your monthly payment.
  • Points: Pay attention to the points the lender charges while reviewing the conditions of your loan. If it is unclear how points will effect your overall cost, please sure to inquire. Points might be represented as dollars or as point values.
  • Down payment: Lenders often demand a down payment when you apply for a loan. Typically, the down payment is stated as a percentage of the value of the house, like 3% or 5%. Some mortgage programs let you put as little as 3% or even no money down on a home. If your down payment is less than 20%, you’ll need to pay for private mortgage insurance (PMI), and your interest rate will probably be higher.
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Get a sense of how much property you can comfortably afford before looking for a mortgage. Use Chase’s affordability calculator to see which price range is within your spending limit.

Final Verdict

Customers often criticize the company’s customer service and lack of response in their evaluations of Chase mortgage. However, the lender provides a number of choices, some of which call for little money down. Additionally, customers who already have investment or bank accounts with the lender may be qualified for interest rate savings that might help to make up for Chase’s drawbacks.

If not, you may want to look into a more reputable lender; to continue your search, read our list of the top mortgage lenders.

Methodology: How We Review the Best Mortgage Lenders

Investopedia is committed to provide customers objective, in-depth assessments of mortgage lenders. With the help of approximately 1,500 data points, we evaluated 45 mortgage lenders and learned the following:

  • Customer satisfaction, online applications, perks and awards, etc.)
  • functional aspects (state licensing coverage, number of loan officers, etc.)
  • offered loan products (fixed-rate, FHA, USDA, etc.)
  • Accessibility (days to closure, minimal debt-to-income ratio, etc) (days to closing, minimum debt-to-income ratio, etc.)

In order to find out which characteristics clients think are most important and how pleased they are with different lenders, we also polled 1,195 mortgage borrowers. To aid readers in making wise judgments regarding house loans, mortgage lenders were objectively appraised in the aforementioned areas.

Read more in our full mortgage lender review methodology.

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