Purchasing a home without a mortgage is difficult for the vast majority of people. A few people have the luxury of putting down hundreds of thousands of dollars in one lump sum.
Currently, most homebuyers are lucky if they can scrape together a deposit. The remainder of the cash must be borrowed from a bank or building society.
Fortunately, hundreds of lenders provide a diverse range of mortgage products. Whether you are buying your first home, remortgaging, or moving up the ladder, a home loan should be right for you.
One such lender is Sebonic Financial. This article will walk you through everything there is to know about this lender before trying to apply.
Who is Sebonic Financial?
Sebonic Financial, one of Cardinal Financial’s divisions, is a Charlotte, North Carolina-based mortgage lender that makes loans in all 50 states of the U.S. and the District of Columbia.
Borrowers may use an all-digital lending platform to go from getting a rate quote to closing on a mortgage entirely online, with over-the-phone guidance from loan officers along the way.
They may use Sebonic’s proprietary platform, Octane, to drag and drop loan paperwork, sign documents online, and receive real-time status updates at each milestone.
Sebonic Financial is an excellent alternative for many consumers since it offers large loan amounts and cheap down payment options for first-time homebuyers.
However, if you look around before obtaining a pricing quote, the company isn’t especially transparent about potential fees.
A Quick Overview of Sebonic Financial Loans
- Conventional loans
- Federal Housing Administration (FHA) loans
- Department of Veterans Affairs (VA) loans
- U.S. Department of Agriculture (USDA) loans
- Jumbo loans
- Refinance loans
- Fixed-rate loans
- Adjustable-rate mortgages (ARMs)
A fixed-rate mortgage’s interest rate never changes. An ARM offers a fixed interest rate for a certain length of time. Depending on market conditions, the rate may then climb or fall throughout the loan period.
Sebonic offers ARM terms of 3/1, 5/1, 7/1, and 10/1. A 3/1 rate, for example, is fixed for three years and then adjusted once a year for the remainder of the time.
Sebonic also provides jumbo loans, which are house loans that surpass the conforming loan ceiling of a particular dollar amount. The maximum for 2021 in most parts of the United States is $548,250.
Sebonic Financial will fund jumbo loans up to $3 million, with the option of an interest-only adjustable-rate mortgage (ARM).
Please note that Sebonic Financial does not provide a home equity line of credit, a home equity loan, a renovation loan, a reverse mortgage, or a construction loan.
Advantages and Disadvantages of Sebonic Financial Mortgage Loan
Nonetheless, there are various drawbacks to borrowing with Sebonic: If you wish to get a mortgage with Sebonic, you’ll need to call the lender to determine the rates and fees. Here’s what you should know about the lender before you apply.
Advantages
- The lender provides a simplified and streamlined digital procedure.
- The company provides funding for all three government-backed lending programs as well as conventional and jumbo loans.
- All 50 states and Washington, D.C. are covered.
- They offer interest-only jumbo ARMs.
Disadvantages
- Mortgage rates are not available on the lender’s website.
- Home equity loans, HELOCs, rehabilitation loans, reverse mortgages, and construction loans are not available.
- Only Charlotte, North Carolina, Gaithersburg, Maryland, and Las Vegas, Nevada have physical locations.
Things to Know About a Sebonic Financial Mortgage Loan
1. Loans can be used to buy new purchases or refinance current ones.
Sebonic Financial provides mortgage loans for both home purchases and refinances. With a cash-out refinance, you may be able to refinance your existing loan for more than what you owe and utilize the difference for another financial objective, depending on how much equity you have in your house.
2. A wide range of mortgage products is available.
Sebonic Financial provides a selection of conventional FHA, VA, USDA, and jumbo mortgage loans. This bit is important since Sebonic can service a wide range of clients, from first-time homebuyers to those looking for a large mortgage.
Sebonic also makes loans on single-family homes, townhouses, condominiums, multi-family homes, and mobile homes, among other real estate firms. Sebonic may also be able to assist people looking to purchase a second home or a rental property.
3. The eligibility conditions are available on the website.
Sebonic’s website lists the minimum qualifying requirements for several loan types. For example, whereas a conventional loan requires a credit score of 620, an FHA loan can accept credit ratings as low as 550.
If you’re unsure if you’ll qualify, it’s a terrific place to start and may help remove some of the uncertainty from the loan process.
4. You must call to check prices.
It is not as simple as skimming the webpage to estimate your potential Sebonic rate. To compare rates, you’ll need to submit an online inquiry and speak with a loan officer.
If you opt to proceed with a loan application, you may finish the rest of the process online, including supplying your financial documents and signing the contract.
If you need assistance with the mortgage process, speaking with a loan agent may be advantageous. If you want an all-digital experience, you’ll have to look elsewhere.
5. They don’t provide home equity products.
Sebonic Financial does not provide home equity loans or home equity lines of credit (HELOCs). You’ll have to look around for different lenders if you want to tap into your home equity without refinancing to consolidate credit card debt or pay for home improvements.
Who Can Take Advantage of this Loan?
Sebonic Financial is a fantastic choice for those searching for a large home, vacation home, or real estate investment. It offers jumbo loans and financing for second homes or rental properties.
For jumbo loans, interest-only adjustable-rate mortgages, or ARMs, are available, with loan amounts up to $3 million.
Sebonic’s selection of government-backed loans might help you if you’re a first-time purchaser. No money down VA and USDA loans are available to qualified candidates.
An FHA loan may need as little as a 3.5 percent down payment. On the Sebonic website, you can also find a purchase and refinance calculator, which may help you figure out how much property you can afford and how much money you could save if you refinance.
People who want to avoid phone calls and physical documentation may likely appreciate the Octane application process when it comes time to apply. You can decrease the number of documents you must fill out since you may verify closing costs and terms inside the loan platform.
Additionally, e-signing eliminates the requirement for a trip to the office.
How to Apply for a Sebonic Financial Mortgage
Requesting an online quotation is the first step in buying a house or refinancing your current mortgage with Sebonic Financial. This online form inquires about your financial situation, such as the amount of your down payment and your credit score.
A loan officer will contact you over the phone.
Sebonic claims to have streamlined the loan application procedure to reduce the number of phone calls you’ll have to make to the firm.
Its home loan site will provide you loan facts and a list of paperwork you’ll need to sign for the loan to be approved, and you may do so remotely.
Borrowers are also expected to pay for third-party fees at closing, which may include:
- Appraisal fee
- Recording fees
- Escrow deposit
- Prepaid interest
- Title search and title insurance
- Optional mortgage points
Sebonic Financial requires a minimum credit score that varies depending on the kind of loan. A conventional loan requires a credit score of at least 620, whereas an FHA loan requires 550 or higher.
You may be able to qualify for the best mortgage rates if you have a better credit score. Borrowers generally close on a purchase loan within 30 days and on a refinance loan within 30 to 60 days.
Just don’t forget to pay for your mortgages when the time comes! You may research why it isn’t a good idea to skip out on your mortgage payments to learn more about the consequences and how you can avoid these.
Final Thoughts
Sebonic Financial is a mortgage company that operates in all 50 states and Washington, D.C., and provides all major mortgage programs. Its all-digital technique is simple and may save you money on interest rates.
However, because Sebonic’s fees and tariffs are not openly available on its website, you must first become acquainted with them. Then, compare it with what other lenders have to offer.
The bottom line is, customer reviews show that Sebonic Financial is a great company to work with. 89% of customer reviews recommend getting a mortgage with the lender, and most customers found it easy to secure mortgage loans with them.
If you find this article helpful for you, you may want to read these also:
- What Is A Mortgage? Your Guide To Understand The Basics
- How To Pay For Mortgage With Your Credit Card: A Review Of Options
- Mortgage Protection Insurance: When Do You Need It?
You can forward this message to friends and family who are thinking about getting a mortgage! Please let me know in the comments what topics you’d like to see me cover in future posts.
