Freedom Mortgage Loan Application Guide and it’s Pros & Cons for First Time Homebuyers

Sophie Woods

A Freedom Mortgage Loan is a type of loan that gives you the freedom to buy a house or refinance your existing mortgage. It provides financial assistance to help you achieve your homeownership goals.

With a Freedom Mortgage Loan, you have the flexibility to choose the terms and conditions that work best for you. It’s important to carefully understand the terms and requirements of the loan before making any commitments.

Overview: Freedom Mortgage Loan Application

Freedom Mortgage is a lender based in Boca Raton, Florida that offers different types of loans to buy or refinance homes. They provide services across the United States, including Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

They specialize in loans backed by the U.S. Department of Veterans Affairs (VA) and the Federal Housing Administration (FHA). Some borrowers choose Freedom Mortgage because of their “Purchase Promise,” which includes guarantees for matching rates and smooth closing processes.

They also offer savings programs through partnerships with other companies. However, it’s worth noting that their customer service ratings have been consistently low, even though they ranked as the fifth-largest VA lender and the 21st-largest mortgage lender overall in 2022 according to federal data.

Freedom Mortgage lets you apply whether you’re buying a home or refinancing. The process starts with completing the Uniform Residential Loan Application (Form 1003), often assisted over the phone by a Loan Advisor. From there, they guide you through disclosures, underwriting, and closing. Below is a clear, user-friendly breakdown of Freedom Mortgage’s loan application process and how you can apply:

Step-by-Step Application Guide

1. Get Prequalified

Fill out an online form or call a Loan Advisor at 888-369-3719.
Provide basic info: income, down payment, and expenses.
Prequalification is free, takes minutes, and lasts for 90 days.

2. Complete the Loan Application (Form 1003)

After prequalification, submit the full Uniform Residential Loan Application.
You’ll need details like employment history, assets, liabilities, the loan purpose, and co-borrower info.
You’ll also answer required and optional demographic questions.

3. Submit Supporting Documents

Prepare and submit:

Income: W-2s, pay stubs, tax returns; self-employed need additional documentation.
Debt: Statements for credit cards, loans, etc.
Assets: Bank and investment account statements, gift letters if applicable.
Credit: Freedom Mortgage pulls your credit report with your permission.
ID: Valid photo ID for closing.

4. Review Disclosures & Provide Your Intent to Proceed

Choose electronic or mail delivery (E-Consent available).
Review and sign the Loan Estimate, which outlines terms, interest rate, closing costs, and payments.
Confirm your Intent to Proceed—this authorizes Freedom Mortgage to continue processing your loan.

5. Underwriting, Appraisal & Title Search

Underwriters assess your financials against qualifications.
A title search ensures the property is clear of liens and ownership issues.
An appraisal confirms the property’s market value, required for purchases.

6. Closing Disclosure & Final Steps

You’ll receive a Closing Disclosure with final loan details.
Review and acknowledge it.
Attend closing to sign documents and finalize the loan.

Special Loan Types: FHA & VA

FHA Loans: Similar application and document requirements. Lower down payment, but include mortgage insurance premiums.
VA Loans: Requires Certificate of Eligibility (COE). Streamline refinance options are available with less paperwork.

Manage Your Mortgage and Next Steps

Use the Freedom Mortgage mobile app from Google Playstore: view balances, pay bills, go paperless, and get notifications.
Register or log into your “My Freedom” account to access loan documents and payments online.

Quick Application Checklist

Stage	What to Do
Prequalification	Call or apply online; get estimate of what you can afford
Full Application	Complete Form 1003 with all borrower(s) details
Document Submission	Provide income, asset, debt, credit, and ID documents
Disclosures & Intent	Sign Loan Estimate and confirm to proceed
Underwriting & Processing	Expect appraisal and title search
Closing	Review Closing Disclosure and finalize the mortgage
Post-Close Management	Use app or online account for loan management

Mortgage Rates

Carefully explore rates from multiple lenders to learn what is available to you

Pros and cons of Freedom Mortgage

Pros

First-time homebuyer programs available (conventional, FHA and VA)

Cons

Online information about loan costs is limited
No home equity loans
Poor marks for customer service

How to Score Freedom Mortgage Loan

The Freedom Mortgage Loan Score is determined by a team of experts who rate it and other lenders on a scale from one to five stars. Normally, they consider various factors related to the lender’s products and services.

To calculate the overall score, the team take into account three main factors which are as follows.

1. Affordability

One major advantage of working with Freedom Mortgage Loan is that if you apply for a loan with them, they will notify you about any improved deals that become available.

2. Availability

Freedom Mortgage Loan operates across the entire United States, providing a variety of loan products. They specialize in FHA and VA loans, offering these specific types of loans to borrowers.

3. Borrower experience

This lender has received attention for regulatory violations in the past, which have made headlines. Customers who have reviewed the lender on the Better Business Bureau website generally rate it somewhere in the middle compared to other lenders..

Affordability: 3.5/5

Affordability can vary among different lenders, so it’s important to compare costs. While Freedom Mortgage’s website does not provide a way to view current mortgage rates, they do offer the option to sign up for rate alerts. This allows you to stay informed about the latest deals and see the most up-to-date mortgage rates.

Availability: 5/5

The overall mortgage application process can be affected by various factors, including the lender you choose. Freedom Mortgage Loan offers both conventional loans and government-insured loans, making it a versatile option. They also provide opportunities for refinancing existing mortgages.

Another advantage is their willingness to work with borrowers who have lower credit scores and down payments. Freedom Mortgage Loan operates throughout the country and in most U.S. territories, providing nationwide coverage.

Borrower experience: 2.7/5

When working with Freedom Mortgage, it’s important to be aware of certain aspects. As a prominent mortgage originator with a substantial loan funding record of over $500 billion, Freedom Mortgage holds accreditation from the Better Business Bureau and has received an A+ rating from them.

However, it’s worth noting that the lender’s Trustpilot score is low at 1.3, indicating a “Bad” rating, and it ranked last in customer satisfaction among large lenders in the 2022 J.D. Power mortgage originator survey.

Additionally, Freedom Mortgage has faced regulatory issues in recent years and has incurred significant fines in 2016 and 2019 due to various violations. However, in terms of the application process, the lender generally provides loan decisions within 24 hours and is capable of closing on a home purchase in less than 30 days.

On their website, Freedom Mortgage offers helpful tools such as a mortgage calculator and basic information about homebuying to assist borrowers. It’s important to consider these factors and conduct thorough research before deciding to work with Freedom Mortgage.

How to apply for a mortgage with Freedom Mortgage

You can apply for a purchase loan or a refinance with Freedom Mortgage in person at a branch, by phone or via the lender’s website. Here are some tips to prepare for the process:

1. Check your credit report

Checking your credit report before your lender does is important because it allows you to identify and correct any errors that could potentially affect not only your preapproval but also your eligibility for the most favorable mortgage rates. Being aware of your credit score also helps in determining the type of loan that suits you best.

For instance, if your score is in the very low 600s, an FHA mortgage might be a more suitable option as its eligibility criteria are generally more forgiving compared to conventional loans. Meanwhile, you can use this step by step guide to increase your credit score.

Generally, by regularly checking your credit report and understanding your credit score, you can make informed decisions about the type of loan that aligns with your financial situation. See the importance of regularly checking your credit score.

2. Gather personal and financial documents

When applying for a mortgage with any lender, it is important to provide documentation related to your income, assets, and debts. This typically includes items such as pay stubs, W-2 forms, as well as statements for your accounts and loans..

3. Provide details about the property

When applying for a mortgage, you’ll have to give the address of the home and get it appraised. If you’re refinancing, you may or may not require an appraisal.

Refinancing with Freedom Mortgage Loan

Freedom Mortgage offers assistance in refinancing your current home loan. Before proceeding with a refinance, it’s important to consider your goals. Are you looking to adjust the interest rate and term of your current mortgage?

Can you potentially obtain a lower interest rate? Are you interested in accessing your home equity? Do you wish to switch loan programs, like moving from an FHA loan to a conventional mortgage?

Once you have established your goals, the loan officers at Freedom Mortgage can guide you in choosing the appropriate refinance product that aligns with your needs.

Frequently asked questions about Freedom Mortgage Loan

What is the Freedom Mortgage Loan Eagle Eye program?

If you’re interested in a Freedom Mortgage loan, you can sign up for “Eagle Eye” alerts via text in order to be notified when interest rates go down or better offers become available.

What is Freedom Mortgage Loan Purchase Promise and who is eligible?

This promotion from Freedom Mortgage guarantees that if your purchase loan doesn’t close by the closing date in your contract, the lender will pay you $1,000. The Purchase Promise doesn’t apply to jumbo loans or loans that include down payment assistance, and it’s not available on refinances.

Compare Freedom Mortgage Loan to other lenders

Freedom Mortgage Rating: 3.7 stars out of 53.7Bankrate Score	USA Rating: 4.6 stars out of 54.6 Score	Navy Federal Credit Union Rating: 5 stars out of 55.0 Score
Loans offered Conventional, jumbo, FHA, VA, USDA; refinancing; investment property	Loans offered Conventional, jumbo, VA, fixed-rate; refinancing	Loans offered Conventional, jumbo, VA, Military Choice, Homebuyers Choice, refinancing
Min. credit score required620 for conventional loans, 550 for FHA loans, 580 for VA loans	Min. credit score required640 for VA loans	Min. credit score required Undisclosed
Down payment3% for conventional loans; 3.5% for FHA loans; none for VA loans and USDA loans	Down payment None for VA loans	Down payment3% for conventional conforming loans, none for VA loans
Nationwide availability All U.S. states	Nationwide availability Available in all states	Nationwide availability Available in all U.S. states

Conclusion

Freedom Mortgage is a national lender that offers a range of loan options, including conventional, FHA, and VA loans. They provide the convenience of online tools for loan applications and account management.

However, it’s important to consider some factors before choosing Freedom Mortgage. While they have experienced regulatory issues and mixed customer reviews, they do offer the benefit of alerting you to better deals.

Applying with Freedom Mortgage is a structured process—from pre-qualification to closing. Their Loan Advisors simplify the journey. Be prepared with documents and respond quickly during underwriting to keep your loan on track. Would you like help finding eligibility requirements for FHA, VA, or USDA loans? If yes, use the related posts below to get updates.