NorthPointe Bank Mortgage Review

    NorthPointe Bank Mortgage Review: Get To Know Your Loan Options

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    Finding a loan option that perfectly matches your financial goals isn't easy, especially if the mortgage providers in your area offer a limited range of options. You might end up taking out a mortgage that doesn’t have flexible terms or will force you to compromise on the property you can buy.

    Thankfully, there are lenders like Northpointe Bank that offer an extensive range of mortgage products. Whether you're a first-time homebuyer or a homeowner wanting to refinance your property, you'll find what you need at North Pointe Bank.

    In this review, we'll break down the mortgage products offered by this lender. We'll also review their rates and fees to see if they're the right fit for you.

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    What To Look For In A Mortgage Lender

    Before we move forward, let's take a look at the factors we look at when evaluating a lender.

    Available Loan Options

    Every borrower has unique needs and circumstances. The best lenders are those that offer a wide selection of loan types and can cater to a diverse range of borrowers.

    Generally, lenders offer the following:

    Conventional Loans

    Conventional loans refer to mortgages that are not backed by the federal government. While you'll need a moderate to high credit score to secure a conventional loan, it also comes with a few benefits.

    First, conventional loans come in a variety of terms. You can choose from 15-year, 20-year, or 30-year fixed-rate terms. Some lenders also offer adjustable-rate conventional mortgages.

    The second benefit of getting a conventional mortgage is that it comes with less paperwork and requirements. You'll be able to close your loan in fewer business days than usual.

    Government-Backed Loans

    Government-backed loans are those that are insured by the U.S. government. In case borrowers fail to make their monthly payments, the government can step in to help the loan company recover losses. Because of this, government-backed loans have more lenient credit requirements.

    Government-backed mortgages include FHA loans, VA loans, and USDA loans.

    Mortgage Rates And Fees

    The best lenders offer low and fair mortgage rates. These rates determine how much you'll pay every month for your property. 

    However, rates aren’t the only determinant of your expenses – fees (which vary per lender) can also drive up your monthly payments. Here are some of the fees that you'll typically have to pay upon closing:

    • Origination fees: This covers administrative fees related to processing loans.
    • Credit report fee: Most lenders review your credit score before offering you a mortgage. You'll need to pay a fee so that they can request your credit history from an accredited agency.
    • Rate lock fees: Some lenders charge a fee before they allow you to lock in current interest rates.
    • Private mortgage insurance: Most lenders will require you to pay private mortgage insurance if your down payment is less than 20% of the property's price.

    Application Process

    In today’s digital world, lenders should have a simple and convenient application process. Fortunately, most lenders allow borrowers to start the process online, although some of them require you to work with a loan officer to complete your application.

    Generally, we consider the following factors when reviewing a lender’s process:

    • Does the company have a reliable online system?
    • Do they make a soft or hard credit inquiry?
    • Can the borrower close transactions on the website?
    • Are interest rates transparent and posted online?
    • How fast can the business close the deal?

    Customer Service

    Client satisfaction is always important, but it’s especially essential for lending companies. After all, mortgages are multi-year commitments – you’ll want a lender that can support and assist you throughout the life of the loan.

    We look at the following when reviewing a company's service:

    • Can borrowers call or meet with representatives face-to-face to discuss loans?
    • How is the company's online reputation?
    • Are complaints and issues resolved swiftly?
    • Are they accredited by the Better Business Bureau?
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    Northpointe Bank Mortgage Review

    Northpointe Bank is a regional lender that's headquartered in Grand Rapids, Michigan. Its services are available online in all 50 states plus Washington, D.C. Brick-and-mortar branch locations are also available in more than 20 states.

    Northpointe Bank Mortgage Products

    The best part about Northpointe Bank is that it offers a full suite of loan options. That makes them stand out from other lenders that may only provide a limited range of loan products.

    At NorthPointe Bank, borrowers can take their pick from the following:

    Conventional Loans

    Northpointe Bank offers conventional loans to borrowers for as little as a 5% down payment. They can choose from 15 or 30-year fixed-rate terms or 5/1 adjustable-rate terms. They may also borrow up to $484,350 for single-family homes.

    SimpleLoan

    If you need to close your mortgage deal quickly, SimpleLoan is ideal for you. This is a streamlined Northpointe Bank mortgage product that guarantees a close within 15 days from the receipt of the borrower's complete application. 

    Home Equity

    If you want to use the equity in your home to finance a large expense, you can turn to Northpointe Bank for help. The company offers two home equity loan options:

    • Home equity line of credit (HELOC): This loan will allow you to have a revolving source of funds that you can access as you please.
    • Home equity loans: This is an option for people who need cash immediately. You can use it to renovate your property, consolidate debt, or cover education expenses, among many other things.

    Jumbo Loans

    NorthPointe offers jumbo loans for people looking to buy a larger and more expensive property. The loan amount can reach up to $3 million with a 10% minimum down payment.

    Renovation Loans

    Whether you want to buy a fixer-upper or renovate your current property, you can take out a loan that's right for you at NorthPointe Bank. You can choose from the following:

    • Construction and renovation: This loan is ideal for those who are remodeling an entire house or making a major addition.
    • Streamlined renovation: This Northpointe Bank mortgage loan is best for those who are making small updates to their kitchen or bathroom. You can borrow up to 15% of the as-completed appraised value of your property.
    • Homestyle renovation: This option is ideal for homeowners who are planning to make small additions, as well as those who want to do complete remodels. You can borrow up to 75% of the as-completed appraised value of your property.
    • FHA 203 (k): This low-cost loan will help you finance renovation costs based on the future improved value of the property. You'll need a down payment of 3.5%.

    Doctor Loans

    One unique Northpointe Bank mortgage product is the doctor loan. With this mortgage loan, physicians can get up to 100% financing without having to purchase private mortgage insurance. Loan amounts can reach up to $1.3 million and various loan terms are available.

    Professional Loans

    This type of mortgage is designed for attorneys and other self-employed professionals. Qualified individuals can secure a home loan for as little as a 3% down payment without monthly mortgage insurance.

    Investment Property Financing

    At NorthPointe Bank, you can find loan options if you want to purchase, refinance, or renovate an investment property. 

    Rural Development Loans

    If you're interested in purchasing a property in a rural area, you can take advantage of Northpointe Bank's special rural development loan for low- and moderate-income borrowers. It comes with flexible credit guidelines and fixed interest rates.

    EquityBuilder

    EquityBuilder is a zero-down payment mortgage product with a shorter rate term. While there are no income restrictions, this is only available to first-time homebuyers for home purchase transactions. There’s a maximum loan amount of $700,000, and you can buy discount points to lower the interest rate

    Instead of the usual 30-year fixed mortgage, EquityBuilder has 15-year and 20-year loan options. While the shorter term may increase the monthly payment, you'll be able to save on interest payments over the life of the loan. Shorter terms also help you build home equity as soon as possible.

    HomeReady

    This Fannie Mae program is designed to help low- and moderate-income individuals purchase a home. You'll need to make a down payment of 3% of the property's price. Once you reach 20% home equity, you can cancel your private mortgage insurance.

    State Bond Programs

    These specialized programs help homebuyers get loans with low-interest rates and low down payment requirements. NorthPointe offers these in the following states:

    • Colorado
    • Georgia
    • Michigan
    • North Carolina
    • South Carolina
    • Washington

    Government-Backed Mortgages

    Like most lenders, Northpointe Bank offers products that are backed by the federal government. These include the following:

    • VA Loans: A VA loan is a $0-down payment financing option for active-duty military personnel, veterans, and their families. Check with the US Department of Veterans Affairs for eligibility requirements.
    • FHA Loan: This type of mortgage is backed by the Federal Housing Administration. It comes with fixed-rate terms and is available to both first-time and repeat home buyers with a less-than-ideal credit score.

    Mortgage Rates And Fees

    The bank's interest rates are slightly lower compared to mortgage rates offered by other lenders. If you want to further lower your interest rate, you can purchase discount points.

    Northpointe Bank's fees are pretty standard for the industry. You should prepare to pay the following:

    • Application fee
    • Appraisal fee
    • Origination fee (around 1% of the purchase price)
    • Title search fee
    • Attorney fee
    • Recording fee
    • Escrow fee

    Application Process

    Northpointe Bank has an easy-to-navigate and responsive website. You can use it to initiate the process, message your loan officer, upload documents, and get updates on your mortgage.

    The bank begins the underwriting process immediately after receiving your application. In some cases, the bank can close loans within 15 days.

    Customer Service

    Since NorthPointe only has branches in a few states, you might not be able to consult with representatives face-to-face. Still, you can complete transactions through their website without any problems.

    NorthPointe's online system allows you to message your loan advisor. It also sends you automated notifications in case there are updates related to your loans.

    NorthPointe Bank has an A+ Rating with the Better Business Bureau. It has received a total of 27 complaints in the past 3 years.

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    Pros

    • Extensive home loan options: Northpointe Bank offers a wide range of mortgage products, including zero-down payment options. The bank also offers home equity loans and home equity lines of credit.
    • Reliable and convenient online system: The bank's website makes it easy to secure loans online.
    • Transparent interest rates: You can find interest rates on the company's website. You can also get a customized interest rate using its online loan calculator.
    • Ideal for doctors/professionals with heavy student loans: The bank offers specialized products for doctors and professionals. Even if you have a less-than-ideal credit score, the bank may still allow you to take out a mortgage with little to no down payment.
    • Loans are available nationwide: The company's mortgage products are available online in all 50 states, including Washington, D.C.

    Cons

    • Limited bank branches: If you prefer meeting with a loan officer face-to-face, you might need to find another lender. Northpointe does not have branches in every state and service hours are limited.
    • Vague credit score requirements: Credit score requirements for its loans are not posted on the website.
    • Lending fees and closing costs: Unlike other lenders, NorthPointe will not waive application or origination fees. You'll need to prepare for sizable closing costs before you can secure loans.

    The Bottom Line

    NorthPointe is a regional lender that offers a diverse selection of mortgage products. Whether you want to purchase a new property or renovate an existing one, you'll find loans that are suitable for you. They can also refinance your current property and help you get better terms on your existing mortgage.

    If you want to learn more about mortgage products, get in touch with Wesley Mortgage, LLC. We’ll match you with lenders that can help you achieve your homeownership goals!

    Written By Ed Wallace
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