Filo Mortgage Review: In-Depth Look at Rates, Fees and Customer Satisfaction

Best for a fast close 

There are many reasons to like Filo Mortgage, such as its low rates and zero lender fees, but what really stands out is how fast you can potentially close. Borrowers who choose Filo may be able to close within three weeks. 

Closing often takes as long as 45 days. While there are no guarantees, Filo Mortgage has streamlined the underwriting process, which increases the odds of a fast and easy close for homebuyers. If you’re itching to move to a new home as quickly as possible, you may want to consider Filo Mortgage. 

Methodology

To determine the best mortgage companies, Credible evaluated lenders based on several different categories: rates and fees, reputation, eligibility, efficiency, customer experience, and discounts and perks. We also looked at the types of loans offered by each lender for research purposes only, they did not factor into the overall score. We assigned a score out of five stars to each lender based on our findings. 

Learn more about our expert lender ratings by checking out our Mortgage Lender Rating Methodology. 

Filo Mortgage: Pros and cons

Pros 

• No origination fees: Unlike many of its peers, Filo Mortgage doesn’t charge lender fees. Lender fees tend to be around 1% of the loan amount, which means working with Filo may save you a few thousand dollars depending on how much you borrow. 
• Close in three weeks: Once your bid is accepted by the seller, Filo immediately begins the underwriting process and promises to close within 21 days. While the timespan to close depends on a few factors, it’s not uncommon for the process to take up to 43 days if you work with another lender.
• Great rates: Filo Mortgage rates are some of the lowest rates you’ll find. All of its fixed-rate mortgages currently start in the 5% range. The rate you receive will depend on your credit score, income, debt-to-income ratio (DTI) and down payment amount. Filo also offers 5-, 7- and 10-year adjustable-rate mortgages (ARMs). 
• Match guarantee: If you find a competitor with a lower rate and no origination fees, Filo Mortgage will match its loan cost and give you $1,000 at closing.
• Wide range of loan options: Filo Mortgage doesn’t just offer conventional loan options. It also has VA, FHA, USDA or jumbo loans available.

Cons 

• Not licensed in every state: Filo doesn’t do business in every state. Currently, it’s only licensed to do business in 28. Before you start checking a lender’s rates, make sure it’s licensed in your state.
• Not a mortgage broker: When you submit an application to a mortgage broker, you receive possible rates from multiple lenders. If you choose to work directly with Filo, you will have to apply with other lenders on your own to properly compare rates. 
• No live chat or app: If you have a question, Filo Mortgage customer service doesn’t currently offer a live chat option. However, it does offer customer support via phone or email. It also doesn’t currently offer an app, so if you’re looking for a lender that offers that option to make your application or future payments easier, Filo Mortgage may not be the best fit.

What to consider before applying

• Timing: When determining if you should buy a house, the first question you need to ask is whether it’s the right time for you to buy. If you’re thinking about switching jobs in the near future, you may want to hit pause on buying a home. Lenders typically don’t like to see borrowers switch jobs while they’re in the middle of buying a home. 
• Down payment and closing costs: Unless you plan on using a USDA or VA loan, you will need to make, at minimum, a 3% down payment with a conventional loan or a 3.5% with an FHA. However, you’re likely to receive a lower rate if you make a higher down payment. 
• Credit score: Have you checked your credit score or credit reports recently? If your score is lower than you thought it would be, read through each of your credit reports, which you can do for free at AnnualCreditReport.com. While the name suggests you can only review your reports once a year for free, you can now do so once a week.
• DTI: Many lenders prefer that a borrower’s mortgage only take up a maximum of 28% of their gross monthly income. However, they may also prefer for all of your debts combined to only reach a maximum of 36% — including your potential mortgage payment. If you have other debts, you may want to consider lowering some of them before you apply for a mortgage. 

How to apply for a loan with Filo Mortgage 

The Filo Mortgage application process can be broken down into five steps: 

1. Fill out the necessary forms: You can apply for a Filo Mortgage entirely online. During this initial step, Filo will likely ask for a government-issued ID and proof of income.
2. E-sign disclosure forms: The disclosure forms should tell you the cost of taking out a Filo Mortgage, as well as your expected total monthly payment.
3. Submit required documentation: During pre-approval, Filo Mortgage will likely need additional documentation. This may include tax returns, bank statements and other financial documents.
4. Conditional approval: Once you’ve been approved for a loan from underwriting, Filo Mortgage might request other documentation, such as a property appraisal and proof of insurance. Once these issues have been addressed, a close date will be scheduled.
5. Close: When it’s time to officially close, Filo Mortgage will send a notary to your house. Sign the documents, get your keys and move into your new home.

How to qualify for a loan with Filo Mortgage 

If Filo Mortgage operates in your state, keep in mind that Filo looks at the same variables as the best mortgage lenders on the market. This means Filo Mortgage will also take a look at your credit score, DTI, annual and monthly income, and down payment. 

Also remember that Filo offers multiple loan products, some of which have lower requirements than others, such as first-time homebuyer loans like Fannie Mae’s HomeReady or Freddie Mac’s Home Possible. If you don’t qualify for a conventional mortgage, this may be the route to go. 

How to refinance with Filo Mortgage

Even if you already have a mortgage, you may want to consider a Filo Mortgage refinance. If your credit score or income have improved since you took out your mortgage, or rates have lowered since you bought your house, then it may be worth considering.

Refinancing is very similar to taking out a regular mortgage. You’ll apply online and submit various documents, such as bank statements and tax returns. With a refinance, you’ll also be asked to submit your current mortgage paperwork.

If you’re approved, you’ll need to select a new term. Filo Mortgage offers terms from 10 to 30 years. As with a regular mortgage, you’ll need to close and pay closing costs. 

How Filo Mortgage compares 

Zero lender fees, low rates and fast closing times certainly make Filo Mortgage stand out. However, no matter which lender you choose, always compare it to its peers. Look at rates, closing times, fees and customer reviews. Sometimes a lender may seem great on paper, but it’s unable to deliver a positive customer experience. That said, online reviews suggest that many borrowers have a good experience with Filo Mortgage. Customer reviews on the Better Business Bureau’s website give the lender 4.73 stars out of 5.