Watermark Home Loans Mortgage Review 2024

Watermark Home Loans overview

Watermark Home Loans is a direct online mortgage lender in business since 2006. The lender is based in Irvine, California, and is available to borrowers in the majority of states. It offers an array of mortgage options, including conventional and government-insured loans as well as niche products like interest-only and piggyback loans. The lender also provides refinancing options.

Pros and cons of Watermark Home Loans

How Bankrate scored Watermark Home Loans

Affordability: 9.6/10

You won’t find mortgage rates or fees from Watermark Home Loans publicly advertised on its website. Instead, you’ll need to fill out a rate quote request form with your personal details to receive an estimate. You can also sign up for a free rate watch tool to track rate movement. There’s no application fee, however, and no-closing cost options. This typically means you can roll the closing costs into the mortgage in exchange for a higher rate instead of paying for them upfront.

Availability: 10/10

Watermark Home Loans stands out for its extensive loan offerings, which include the standard home purchase and refinancing options as well as products for real estate investors, self-employed borrowers and older homeowners. The lender has grown to now service most states in the U.S. Its minimum credit score requirements are in line with what most lenders expect, but notably, it offers jumbo loans to borrowers with lower scores who are otherwise well-qualified.

Borrower experience: 7.5/10

Watermark Home Loans was founded in 2006. It is accredited by the Better Business Bureau with an A+ rating. The lender’s site includes a variety of calculators that can help prospective homeowners do the math on APR, refinance break-even point and more.

Refinancing with Watermark Home Loans

Watermark Home Loans offers both rate-and-term and cash-out refinancing options. However, the lender doesn’t list any information about fees or closing time expectations online. You’ll need to fill out a rate quote form to learn your options.

How to apply for a mortgage with Watermark Home Loans

You can apply for a mortgage with Watermark Home Loans online or by phone at (833)313-7943. Here are some tips to prepare for the process:

1. 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.
2. 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.
3. 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.)

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability. Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%

  • Availability. Loan products - 50%; licensing - 40%; credit score - 10%

  • Borrower experience. Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.