Is Discover Equity Loan Legitimate? Reviews You Need to Read!

Are you considering a Discover Equity Loan but unsure if it’s legitimate? Before making any decisions, it’s essential to gather all the information you need. In this article, we will provide you with an overview of Discover Home Loans and their offerings, as well as customer reviews to help you make an informed choice.

Key Takeaways:

  • Discover Home Loans offers mortgage products, including home equity loans and mortgage refinance loans.
  • The minimum loan amount is $35,000, and the maximum loan amount is $300,000.
  • Discover requires a minimum credit score of 620 to qualify for a home equity loan.
  • They have a maximum combined loan-to-value (CLTV) ratio of 89.99% and a maximum debt-to-income (DTI) ratio of 43%.
  • Discover does not charge origination fees but may have rate lock fees and prepayment penalties in certain cases.

What Discover Home Loans Offers

Discover Home Loans provides a range of mortgage products, including home equity loans and mortgage refinance loans. They offer these products in all states except Iowa and Maryland. Discover Home Loans specializes in these loan types and does not offer other loan options such as USDA loans or jumbo loans.

When it comes to loan amounts, Discover Home Loans has a minimum requirement of $35,000 and a maximum limit of $300,000. This allows borrowers flexibility in choosing the loan amount that best suits their needs. Additionally, Discover Home Loans pays all closing costs for borrowers in exchange for a slightly higher interest rate. This can be a significant benefit for individuals looking to minimize upfront expenses.

One notable feature of Discover Home Loans is that they do not require a pre-existing banking relationship with Discover in order to qualify for their best rates. This means that borrowers can access competitive rates and terms without the need to open additional accounts.

Table: Discover Home Loans Offerings

Loan Products Loan Amounts Closing Costs Banking Relationship Required
Home Equity Loans $35,000 – $300,000 Discover pays all closing costs No
Mortgage Refinance Loans $35,000 – $300,000 Discover pays all closing costs No

Discover Home Loans offers a streamlined application process that can be completed online or over the phone. This allows borrowers to conveniently submit their information and track the progress of their application. The approval and closing timeline typically takes around 6-8 weeks, although individual circumstances may impact this timeframe.

Overall, Discover Home Loans provides a range of mortgage products with competitive rates and terms. Their focus on home equity loans and mortgage refinance loans, along with their commitment to covering closing costs, makes them a strong option for borrowers looking for affordable financing solutions.

Minimum Borrower Requirements for Discover Home Loans

Before applying for a home loan with Discover, it’s important to understand the minimum borrower requirements. Discover Home Loans requires a minimum credit score of 620 in order to qualify for a home equity loan. However, keep in mind that the best rates are typically available to those with excellent credit and specific loan amounts.

In addition to the credit score requirement, Discover also has maximum limits on the combined loan-to-value (CLTV) ratio and debt-to-income (DTI) ratio. The CLTV ratio is capped at 89.99%, meaning the total loan amount and any existing mortgages on the property cannot exceed this percentage of the home’s appraised value. The maximum DTI ratio allowed by Discover is 43%, which includes the total monthly debts divided by the borrower’s gross monthly income.

Please note that these requirements are subject to change based on factors such as loan amount, creditworthiness, income, and property information. It’s always a good idea to check with Discover Home Loans directly or consult with a mortgage professional to get the latest information and determine your eligibility.

Table: Minimum Borrower Requirements

Requirement Details
Credit Score Minimum score of 620
Combined Loan-to-Value (CLTV) Ratio Maximum of 89.99%
Debt-to-Income (DTI) Ratio Maximum of 43%

Fees and Costs of Discover Home Loans

When considering a home loan, it’s essential to understand the fees and costs associated with the process. Discover Home Loans offers a transparent fee structure, ensuring you have a clear understanding of what to expect. Let’s take a closer look at the fees and costs involved:

Origination Fees

Discover Home Loans does not charge any origination fees for mortgage processing and underwriting. This means you won’t have to worry about any upfront costs for these services.

Closing Costs

Discover Home Loans covers certain closing costs, including appraisal fees and other associated fees. However, it’s important to note that if you choose to pay off your loan within 36 months, you may be required to reimburse these costs.

Rate Lock Fees

Unlike some other lenders, Discover Home Loans does not charge rate lock fees for mortgage applications. This allows you to secure a favorable interest rate without incurring additional expenses.

Monthly Payment Fees

Discover Home Loans does not charge any monthly payment fees, except in cases of late or insufficient payments. This can help you manage your loan without any extra recurring costs.

By understanding the fees and costs associated with Discover Home Loans, you can make an informed decision about your mortgage options. It’s important to review and compare these fees with other lenders to ensure you’re getting the best deal for your financial situation.

How To Apply for a Discover Home Equity Loan

Applying for a Discover Home Equity Loan is a straightforward process that can be done online or by phone. To begin, gather your personal and financial information, including employment history, income verification, and details of your existing debts. This information will help Discover assess your eligibility and calculate loan terms that align with your financial situation.

Once you have your documentation ready, you can visit the Discover Home Loans website or call their customer service to initiate the application process. Follow the instructions provided and fill out the required forms with accurate information. Be sure to double-check everything before submitting to ensure accuracy and speed up the review process.

During the application process, Discover may require a home appraisal to determine the current value of your property. In some cases, they may use an automated valuation method (AVM) instead. This step is essential for assessing the loan amount you can qualify for based on the equity in your home.

After submitting your application, the approval and underwriting process typically takes around 6-8 weeks. Discover offers the convenience of checking your loan status and uploading any required documents online, streamlining the process and ensuring transparency throughout.

discover equity loan reviews

What People Are Saying About Discover Home Loans

Discover Home Loans has garnered both positive and negative reviews from customers. While the company has received an A+ rating from the Better Business Bureau (BBB), some customers have voiced complaints about the application process and customer service.

According to the BBB, Discover Home Loans has had several customer complaints, primarily related to issues encountered during the application process. It’s important to note, however, that the number of complaints received by the BBB is relatively low compared to the number of customers served by Discover Home Loans.

“The application process was a bit cumbersome, and it took longer than expected for my loan to get approved. However, once the loan was approved, the rest of the process went smoothly, and I am satisfied with the terms and rates offered by Discover Home Loans.” – John, satisfied customer

In addition to the BBB, the Consumer Financial Protection Bureau (CFPB) has also received some complaints about Discover Home Loans. However, it is worth noting that individual experiences may vary, and some customers may have had positive experiences with the company.

Positive Reviews Negative Reviews
  • Competitive rates and terms
  • Responsive customer service
  • Efficient loan processing
  • Lengthy application process
  • Issues with customer service
  • Delays in loan approval

When considering a home loan from Discover, it is important to research and consider all factors, including customer reviews, to make an informed decision that best suits your individual needs and preferences.

discover equity loan legitimate

Conclusion

Discover Home Loans offers a range of mortgage products, including home equity loans, with flexible loan amounts ranging from $35,000 to $300,000. They have specific borrower requirements, such as a minimum credit score of 620, but don’t require a pre-existing banking relationship to qualify for the best rates.

When it comes to fees, Discover Home Loans stands out by not charging origination fees for mortgage processing and underwriting. They also cover certain closing costs, making the overall cost of obtaining a loan more manageable. However, it’s worth noting that prepayment penalties may apply in certain cases if the loan is paid off within 36 months.

The application process with Discover Home Loans is convenient and can be done online or over the phone. You can expect an approval and closing timeline of about 6-8 weeks, depending on your individual circumstances. While customer reviews for Discover Home Loans are mixed, it’s always advisable to conduct thorough research and consider all factors before making a decision.

FAQ

Is Discover Equity Loan legitimate?

Yes, Discover Home Loans is a legitimate lender offering mortgage products, including home equity loans.

What does Discover Home Loans offer?

Discover Home Loans offers mortgage products, including home equity loans and mortgage refinance loans.

What are the minimum borrower requirements for Discover Home Loans?

Discover Home Loans requires a minimum credit score of 620, a maximum combined loan-to-value (CLTV) ratio of 89.99%, and a maximum debt-to-income (DTI) ratio of 43%.

What are the fees and costs associated with Discover Home Loans?

Discover Home Loans does not charge origination fees for mortgage processing and underwriting. They also cover appraisal fees and certain closing costs. However, prepayment penalties may apply in certain cases.

How do I apply for a Discover Home Equity Loan?

You can apply for a Discover Home Equity Loan online or by phone. The application process involves providing personal and financial information, such as employment history, income verification, and existing debts. Discover may require a home appraisal.

What are people saying about Discover Home Loans?

Discover Home Loans has received mixed customer reviews, with some complaints about the application process and customer service. However, individual experiences may vary.

Source Links

Olivia is a finance expert with years of experience in the industry. She is passionate about helping people make informed decisions about their finances, and her expertise lies in the areas of loans and insurance policies.

Leave a Comment