How Bankrate scored Mr. Cooper
- Affordability: Mr. Cooper’s rates appear low at first glance, but they include discount points which you’ll need to pay upfront if you want the savings.
- Availability: This lender operates nationwide and in some U.S. territories. It offers a range of loan products, including options for investors.
- Borrower experience: Mr. Cooper funnels much of the application process onto its website and app. J.D. Power has given the lender lower marks for customer satisfaction.
Affordability: 10/10
While Mr. Cooper’s advertised rates are lower than Bankrate’s national averages (as of this review), those rates include discount points that could add up to sizable upfront costs. Additionally, this lender charges some fees.
Availability: 10/10
Mr. Cooper provides conventional loans as well as some government-backed loans (FHA and VA), along with options to refinance your existing mortgage. The lender is licensed to lend throughout the U.S., Puerto Rico and the U.S. Virgin Islands.
Borrower experience: 7.3/10
While Mr. Cooper has favorable reviews on Trustpilot, it’s important to note its reputation has some blemishes: The lender’s track record with the Better Business Bureau includes more than 1,600 complaints in the past three years, and it came in below average in J.D. Power’s latest customer satisfaction study of large mortgage originators. As far as your experience working with Mr. Cooper, however, its digital tools are top-notch, and include an app that allows you to check in on your application throughout the process. Unlike many lenders with 30- or 60-day preapproval windows, Mr. Cooper’s preapproval lasts for 120 days, and its VerifiedApproval offering generates an approval letter when you’re ready to make an offer on a home. In addition, the lender’s StreetSmarts tool allows you to browse listings and set up property alerts, which could aid you in your home search.
Bankrate staff insights
"Mr. Cooper has been a relatively easy lender to work with. I like its website a lot. Each year, it sends me a short video explaining any upcoming changes to my monthly payment because of changes to escrow. This helps me plan my budget. I do wish their customer service and accessibility were better. The service is generally fine --- and our loan officer was relatively quick to process our refinance a few years ago --- but I don't usually walk away from our conversations feeling like a valued customer. Additionally, this lender can be hard to get ahold of, largely from a complex IVR and longer wait times."
- Bankrate staffer
"My loan was sold to Mr. Cooper. The transition process was relatively seamless, as I was able to get a new login and immediately see my loan information (not the case for other times my loan was transferred). I had a recent frustration, though, where the portal to view documents was down for an extended period of time (about 24 hours). Typically you wouldn't need access to this, but I was doing my taxes and needed a specific statement only available in this section. It occurred on a weekend about a month before Tax Day, which seems like a time many people would be doing their taxes and needing access to this."
- Bankrate staffer
Learn more: How to choose a mortgage lender
Images courtesy of Mr. Cooper as of 4/1/2024. Note: Depending on method of contact, your individual credit profile and other circ*mstances, your experience might differ.
How to apply for a mortgage with Mr. Cooper
You can apply for a mortgage with Mr. Cooper online or by phone at 855-235-0991. Here are some tips to prepare for the process:
- Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
- Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
- Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)
Learn more: How to get a mortgage
Refinancing with Mr. Cooper
Mr. Cooper offers both rate-and-term and cash-out refinancing options. If you refinance within three years of obtaining your loan, it’ll waive the origination fee, which equates to a savings of up to $1,500. (Note: This promotion is only for loans locked by June 30, 2024.)
Learn more: When should you refinance your mortgage?
Special programs offered by Mr. Cooper
1% Mortgage Markdown Program
Mr. Cooper’s 1% Mortgage Markdown Program offers a rate buydown to help borrowers cope with the sharp increase in mortgage rates. This program reduces your loan’s interest rate by a full percentage point for the first year. (Note: This promotion is only for loans locked by June 30, 2024.)
Close On Time Guarantee
The Mr. Cooper Close On Time Guarantee helps ensure your home loan will close on or before the contract closing date. If not, you’ll get a check equal to your first month’s principal and interest payment.
RateSwap
The RateSwap program from Mr. Cooper gives you at least one reason to get a mortgage now: You’ll be able to refinance it later — within three years — without paying an origination fee. (Note: This promotion is only for loans locked by June 30, 2024.)
