Discover Home Loans Review

June 12, 2012 69 Comments »
Discover Home Loans Review

Well, it’s official, there’s a new major mortgage player in town.

And they go by a familiar name, “Discover Home Loans.”

You may have heard a while back that the credit card issuer was getting into the mortgage game, and now their operations are officially live.

In case your were wondering, they scratched and clawed their way into the mortgage biz by acquiring the loan origination assets of Tree.com, formerly known as Lending Tree.

What Does Discover Home Loans Offer?

They offer mortgages. But seriously, they offer both fixed-rate and adjustable-rate conventional mortgages, along with FHA loans.

And they can be used for either a purchase or a refinance, including both rate and term and cash-out refinances.

In the fixed-rate department, you can apply for anything from a 10-year fixed to a 30-year fixed, with 15- and 20-year fixed options in between.

For ARMs, your options are limited to terms of three, five, and seven years. The popular 10-year ARM is notably absent.

With regard to FHA loans, they offer a 15-year and 30-year mortgage term, and an adjustable-rate option. So nothing too groundbreaking here, just basic mortgage offerings.

It’s unclear if they will offer jumbo loans in the future.

What Makes Discover Unique?

Well, they claim to have a streamlined application process, meaning it should be easy to apply and get approved for your mortgage.

You can start the process online by putting in some basic information, and then a Discover “mortgage banker” will call you back. That same mortgage banker will be with you from start to finish.

Additionally, they allow you to securely upload documents and check the status of your loan 24/7, via their home loan lending website.

With regard to time, they offer a “Close on time guarantee” that promises they’ll get your loan funded as scheduled or give you a credit of up to $1,000 for closing costs.

And when you use them for a subsequent purchase or refinance, they will give you a “Welcome back bonus” credit of up to $2,000 that can be used toward closing costs.

New: They’re also offering a 5% cash back bonus to Discover cardmembers who put the appraisal deposit on their card, now through April 16, 2013.

How Are the Rates?

The all-important question…and really the only one most people care about, their mortgage rates.

I took a look at their rates online, and they’re currently advertising a 30-year fixed for 3.75%.

But you have to pay 1.375 in mortgage points. Additionally, the mortgage must be pure vanilla.

In other words, it has to be an owner-occupied, single family home, and the borrower must have a Fico score of 720 or higher.

Additionally, Discover appears to be advertising rates for loan-to-value ratios of 70%, which is not the standard 20% down, or 80% LTV.

So you’ve got to have a pretty pristine loan scenario to snag their advertised rates, which seem a tad high, especially with mortgage points being paid.

[Watch out for mortgage rates you have to pay for.]

Where Does Discover Home Loans Do Business?

Currently, they appear to offer mortgages in 48 states, along with the District of Columbia. New York and Utah are absent from the list.

It’s unclear if these states will be added later as operations presumably expand, but if so, it will be noted here.

Perhaps it’s part of a soft roll-out to ensure everything works out as planned before getting into all 50 states. Or maybe it’s just a simple (or complex) licensing issue.

If you happen to reside in one of the states mentioned above, and want more information regarding Discover’s mortgage lending program, call them up at 1-888-866-1212.

It’ll be interesting to see how Discover navigates the mortgage market. They certainly have a ton of existing customer relationships to tap into, so they’ll be able to grow quickly, and perhaps make the mortgage market more competitive.

Though my guess is that they’ll offer slightly higher-than-market mortgage rates to existing credit card customers, and bank on their trust and reliability to get it all done.

They aren’t going to change the mortgage world as we know it.

69 Comments

  1. ark July 3, 2012 at 11:18 am -

    There is something wrong with Discover Home Loans. We were shopping around to refinance, and of the 3 banks I was talking to, Discover offered the worst rate (3.75% with a quarter point, whereas I got 3.75% with .46 discount points from my current bank). So, long story short, we did not move forward with them, but we decided this at the point between giving my credit card info to pre-authorize an appraisal and before actually signing anything. The “pending” charge for $6.80 was supposed to come off of my credit card if I didn’t sign the papers. But instead it turned into a $400 charge for an appraisal that is never happening. Thankfully Chase Visa’s dispute process will protect me from having to pay. But I can’t get Discover to reverse the charges, or even acknowledge that I’m not refinancing with them. I just found another charge for $20 on my mortgage statement for a payoff statement that they requested! Why am I having to pay for them being dumb and violating RESPA?

  2. Colin Robertson July 3, 2012 at 7:31 pm -

    Ark,

    I can’t speak for Discover Home Loans, but I can say that they are brand new in the mortgage space so I would expect them to have a lot of kinks to work out. And if their mortgage rates aren’t all that competitive, it may be wise to go with a more tried-and-true lender until they’ve got a few years under their belt.

  3. ark July 5, 2012 at 7:23 am -

    It shows that they are inexperienced. Their customer service is also terrible. My mortgage company gave me the number of the person who requested the payoff statement, so I called and requested reimbursement for the $20 fee they caused on my mortgage. There is no excuse for jumping the gun and incurring charges for me before I indicated my intent to move forward. None of the other companies I spoke with did this. However, I was rebuffed by Discover and basically told to f* off. What’s more, I cannot find contact information from anyone at the company besides the person who emailed me and who I spoke with on the phone. I want to escalate this issue, but their opacity makes that impossible. I guess they don’t want the business of the friends of people with 800 credit scores, because I will be telling everyone I know to stay far away from this horrible, irresponsible company.

  4. Mike July 10, 2012 at 6:17 am -

    Discover closed my loan quickly taking less then 25 days after changing from Lending Tree loans to Discover Home loans. It is clear that Discover is committed to customer service in the mortgage side of Discover.

    I shopped around for not the best rate but the company that could give me the best service. In 2009 I closed another loan I had that the lender took 63 days to close due to underwriting times. This cost me .50% in added fees making the company the same or worse then others. I learned if someone has the best rate does not mean you will get the best service. When you are talking about a mortgage service matters. ½ of a point on a $300,000 loan is a lot of money. When you get bad service when going out to eat it only cost you time. When you get bad service from a lender it could cost you thousands.

    If Discover goal is closing loans on time $20 fee is nothing. There is two sides of every comment.

  5. Don July 10, 2012 at 11:47 am -

    I just got off phone with Discover Home Loans and was quoted 3.12% with 0 points for a 15year loan. This was 2nd best of the 4 lenders I have talked to (3.0 being the best). Also, after talking with the 4 different lenders, Discover had the lowest closing fees of the lot.

  6. Bill July 16, 2012 at 8:56 am -

    Ark,

    I have refinanced with Discover, they are required to read you a recorded script before charging you anything, which you have to agree to. As noted this process is recorded, so it’s hard to believe your statements… Not to mention your math is OFF. You stated discover offered you 3.75% for a quarter point (.25%). Then you stated your bank gave you 3.75% for .46% (points). That means the rate you accepted was almost double in points then the one Discover offered.

  7. Tiffany July 25, 2012 at 5:08 pm -

    I had a terrible customer service experience with them – the initial sales person I dealt with was great, quick to review the info – maybe too quick. He never bothered to ask if I had ground rent (I like in Baltimore, it is very common) and we got all the way through the process and he said they wouldn’t cover me. He was up front and honest, but they would not refund my $400 appraisal fee. The customer service went from average to unacceptable as they decided they wouldn’t give me a loan – I get emails addressed to Mr. – my name is Tiffany – (who is reading the loan application now?) and I’m getting very generic ‘sorry, we can’t help you because YOU made a mistake.’ type responses. You aren’t gaining anything here, with all of the other mortgage companies out there – save yourself some hassle and don’t waste your time with Discover Home loans.

  8. Oleg July 27, 2012 at 1:29 pm -

    Ark, I do not think you make any sense about your mortgage rate search through Discover. As Bill pointed out quarter point is much lower than almost half of the point (.46%). So, Discover was actually a winner. I thought all those borrowers before 2008 mortgage crash became much more educated but I guess this is not the case. Please, if you want to blame the mortgage broker or the lender, compare their APRs and then post it here. That would be more or less real comparison.

  9. Tiffany July 28, 2012 at 5:58 pm -

    Just a quick update to my earlier post about not getting my appraisal fee back. – After I posted it (and reached out on twitter) I got a call from a VP in their customer service department and he was very apologetic and offered to refund my appraisal fee. Sounds like they are getting the customer service kinks out.

  10. Andy July 30, 2012 at 9:39 pm -

    These guys seemed very disorganized. The application process was so slow and error prone that I ended up cancelling the refinance. Mistakes included: (1) They sent the appraiser to the wrong address, (2) They listed me as renter rather than owner on my primary residence, (3) They checked “owner occupied” on the investment property that I wanted to refinance. To make matters worse, when I tried to upload my documentation they had a 24 hour web site outage.

  11. Jordan August 3, 2012 at 6:10 am -

    I’ll admit that I was a bit hesitant to even use an online clearing house for loans like Lending Tree, and when they turned into Discover Home Loans in the middle of my mortgage refinance, I was really afraid. But, my account manager was pretty on the ball with everything. He stayed in constant contact with me…working hours well beyond normal business hours. Because of the company change, my closing was delayed a bit, but they offered me a reduced rate and a credit toward closing that sweetened the deal. In the end, I closed when I wanted to avoid extra interest charges and finalized things with a 15 year fixed at 3.25. I didn’t feel like there were any hidden fees or surprises, so…all in all, I was pretty happy.

  12. pp64 August 3, 2012 at 12:24 pm -

    I am set to close with Discover in a few days, and so far I have been very happy with them. I was kept in constant contact with someone (e-mail and phone), was explained all of my potential fees, and my 3.5% interest rate almost half what what I am paying now. My credit is not the best, so I’m very happy for this rate. I did have to provide them with a lot of documents, but that is probably because of my credit issues.

  13. John C August 10, 2012 at 9:27 am -

    After 30 days I cancelled my Refi because of hidden cost that I was NOT disclosed on my good faith estimate. This was supposed to be an easy 1,2,3 FHA streamline finance instead it turned into a nightmare with this company. My advice would be to stay local where you can have contact with the title company and agent….

  14. ElSF August 15, 2012 at 6:34 pm -

    pp64 – Great news for you! I’ve spoke with a Discover home loan rep today and we were on the phone for an hour! I’m new to this mortgage stuff, so the guy was being really helpful. From explaining terms to giving me different scenarios if I were to go with this or that.

    I was pretty happy with the service! Now I just have to figure out my numbers and see which is worth it. I don’t plan on paying up front cost for any point reduction.

  15. Tigerlily August 15, 2012 at 9:34 pm -

    DISCOVER HOME LOANS: Inconsiderate, unprofessional, rude, with inexperienced staff who are unable to answer questions with a straight answer. I often felt like I was talking to a politician!! When the truth finally did come out my 3.5% FHA was no longer valid and 10% was the new down plus closing costs!!! Why qualify people and get them into contracts for homes, get them into escrow; OVER 30 days and then say…nah just kidding!!! This kind of treatment to consumers should be illegal!! Especially, when the good faith deposit and appraisal fees are paid upfront. And don’t expect them to work with your realtor like they are supposed to not unless you light a fire under them. The initial loan rep who qualified me was great! Wasn’t her fault the big cheese decided to pull the rug out from under her and all her clients!! What a lousey company to work for. Pre-qualification my a- -!!

  16. Brooke August 16, 2012 at 9:11 am -

    I had a horrible experience with them. We kept getting the “if you give us this document we will get you approved” line. After two months of this we were denied. We turned right around and got approved two days later with another company. Complete waste of time. Try ANYONE before dealing with Discover Home Loans.

  17. kathleen johnson August 18, 2012 at 10:18 am -

    we inquired with lending tree who sent us to discover home loans to refinance our home and possibly get a home equity loan. we informed the agent of all the items we wanted the home equity loan for. we were then told that we needed to pay $400 for an apprasial. when the appraisal report came in, it listed all the things we listed to the agent that we wanted to fix and they used those against us and not only did not give us a home equity loan, but said that we needed to fix all the things we wanted to fix with the equity loan before we could even get a refinance loan. so they took $400 from us, in my opinion, a scam. then today, i get a BILL from my insurance company for $516 for my home insurance because someone from discover home loans called and said that they are now the name on our mortage. we never signed any paperwork to transfer our mortage from bank of america to discover home loans. i am so disgusted with this company, i can’t even form many thoughts right now. i don’t understand how a big company as discover home loans would need my $400, but i guess if they do this to many others, that $400 adds up.

  18. David Eads August 21, 2012 at 5:54 pm -

    Discover Home Loans were absolutely terrible and clearly lied to us repeatedly. We were told everything was going fine over a two month process. We paid $400 for an appraisal and were told we were approved in writing. Then they asked us to have our accountant prepare a financial statement just for them (very expensive) , then at the very end when all the documentation matched EXACTLY what we had told them from day one they denied us and now will not reimburse us for these expenses. We negotiated reimbursement then they failed to hold up their commitments again. Never do business with these liars.

  19. David Eads August 21, 2012 at 5:56 pm -

    By the way, we have excellent credit and more than enough income to refi the house we’ve lived in for almost 12 years. What a waste of my wife’s summer and hard earned money.

  20. Barbara August 28, 2012 at 12:54 pm -

    I would highly recommend your RUN away from this company!!!! I had a horrible experience with them and yes it did end in the result I wanted it to but the process was extremly stressful. I have perfect credit and pay my bills on time and they made me go through a process that took over 40 days and they canceled settlement 3 hours before time and then finally got it all straightened out. I had to provide them everything but blood and that still wasn’t good enough. There are plenty of other banks that don’t put you through hoops like this one and also they pass you off to one person to another. Just horrible!!

  21. STEPHANIE August 29, 2012 at 7:58 am -

    I TOO HAD A HORRIBLE EXPERIENCE. ONCE THEY GOT THE $400 FOR THE APPRAISAL, GETTING AHOLD OF THEM WAS NEAR IMPOSSIBLE. I TRIED FOR DAYS TO MAKE SURE I WOULD BE APPROVED BEFORE THE APPRAISAL WAS DONE, ONLY TO BE DENIED IN THE END. I REALLY COULD HAVE USED THAT $400 TO PAYS BILLS THAT WERE BEHIND, HENCE THE NEED TO REFINANCE TO BEGIN WITH.

  22. Stressed August 29, 2012 at 4:36 pm -

    SOMETHING IS WRONG WITH THEIR LOAN PROCESS. DO NOT USE THIS COMPANY.

  23. Alan September 4, 2012 at 1:34 pm -

    Discover Home Loans ruined my life. We moved back into our house as our primary residence after having rented it for two and a half years when my wife moved for a job and we were downsizing. Discover assured me that with my income and my credit score, after we re-established residency (which they said was a prerequisite) I wouldn’t have any trouble with a refi…would be a ‘slam dunk’. Even though I gross nearly 40% of what would be the loan amount, I have virtually no credit card balances and a good credit score, they won’t move forward with a refinance. Now I am back stuck with my ultra-high rate without any rental income and not refi. DO NOT APPROACH OR USE DISCOVER HOME LOANS. They ‘made up’ underwriting rules on the fly to get us to back out.

  24. Colin Robertson September 5, 2012 at 9:05 am -

    Interesting comments so far…Discover launched their mortgage business at a difficult time, as mortgage underwriting is a lot more stringent than in years past. This probably explains a lot of the frustration seen above. Couple that with the fact that credit card issuers are usually willing to make things “work” for the customer, and you’ve got a misaligned customer service experience. That is, unless Discover becomes a portfolio lender and makes their own guidelines.

  25. T September 7, 2012 at 12:14 pm -

    All Discover is, is employees of once was Surepoint Lending. Look them up on line with Ripoffreport.com
    This will give you a idea of who is really behind them.

  26. Diane September 21, 2012 at 7:54 am -

    Wow!! I wish I had researched more!!!! We are tangled up with them now. We applied and were approved, told it would take 3-4 weeks. HA! 2 months later we are still
    waiting to close. They don’t seem to know whats going on.
    I was sent a request for information, sent it that same day, 2 weeks later the information was requested again!! I called them, ‘Oh yeah, I got that’. I talked to her for a long time asking “now do you have everything you need to proceed and get us closed?” she says “I think so”.
    Next day, more stuff. I just don’t know about Discover.
    They are making nervouse and I do not feel comfortable with them anymore. i just hope we close and nothing crazy happens. I am worried!

  27. Kevin Greene September 21, 2012 at 3:19 pm -

    I have now done two loans with Discover / Lending Tree. I own several houses and have refinanced fairly frequently in the past . These guys are very organized and make the whole process fairly painless with the tons of documentation that go into these. if you are a returning customer, which I am, it is even easier as they already have most of your info. They are the 4th different mrtg banking group that I have used in the past decades and I will keep going back.

  28. Kentucky Packrat October 2, 2012 at 10:25 am -

    I’ve refinanced a couple of times, so I’ve seen bad mortgage companies and good. Even had a company swap a 4% second mortgage for a 8.25% one during disclosure (had a bank auditor friend BEG me to let her help me sue them).

    We had considered doing a refi through both Citimortgage (they had the first mortgage) and my credit union (they have my second), but both annoyed us way too much to continue (Citi especially still wants to offer me a 3.7% loan…). I ended up trying Discover Loan because they spammed me with a sheet of paper (I have their card).

    I was reasonably happy with the process. I thought the house was under-appraised (I always think that), but the loan guy was already prepared for that. Closing costs were a bit on the high side too, but not excessive. I applied 7/31, and the other loans paid off by 9/19, so it was neither speedy nor excessively long. 2.75% rate too (15 years) with a higher LTV, so nothing to complain there.

    I happened to get people working out of the next major city over, so that probably helped matters out. I suspect that some offices are really good, some are decent, and that there are a lot of stinkers out there. Kinda like everyone else in the banking industry.

  29. Randy Allison October 12, 2012 at 8:10 am -

    Caution!! Caution!! We had been shopping around for re-fi rates. called Discover along with other companies; on sept. 27. Gave the basic info to all companies; including discover. Loan rep @ discover ; Mr. Roy Lewis claimed the company was running a special (of course good for that day only), that would credit back the appraisal fee.I advised Mr. Lewis that I was just now shopping and that it would be 2-3 days before i decided. He explained that a $6.00 charge on my credit card would secure the no appraisal fee special. The appraisal fee would be approx $400.00 that would be charged when the appraisal was done then credited back at closing and if I decided to go with another company, to let them know prior to the appraisal being performed and the $6.00 would be the only charge. I agreed; this was approx. 4;30 pm est. later that same evening I received a call back from one of the other companies I had called earlier; Pacific trust; they quoted 1/4 point lower than Mr. lewis @ discover with all other charge’s remaining basically the same. The next morning 7am est. I emailed Mr. Lewis , telling him of our decision to go with Pac trust; and not his company; i did not receive a response so later that morning I called his direct line and left a voice mail; the next morning i still had not received a call or email ,Icalled again this time speaking directly with Mr lewis ; I advised of my decision and he advised my that no further charges(other that the $6.00) would be charged to my card . Approx. 2 days later a pending charge of $400.00 showed up on my e-statement. I called my card co. to protest, they advised it was only pending ; and to call discover back to have them remove the pending status. I did this ; speaking again with Mr. lewis ; he advised “he would take care of it” .. 2days later pending charge was still there ; called Mr. lewis again; again he said ” he would get it took care of “. this time 2 days later pending charge was gone. Problem solved; not quite; now the charge show’s back up as a charge. tapping my account for $400.00 ; I have again call my card company and protested the charge they now tell my that the money will take 7 – 10 days to get back in my account. Discover rep. was pushy and then non responsive when they did not get the deal. I realize that mistakes do happen, however these people were given every opportunity to correct this error and did not. so I can only believe this scam is a good way for discover to make 7-10 days worth intrest….
    .

  30. Judie Moore October 31, 2012 at 1:52 pm -

    Before I contact them re refinancing our home, does anyone know if they refinance double wide mobile homes? Ours is on our own 2 acre lot. A lot of companies won’t refinance manufactured homes, unfortunately for us. We are currently paying 8% and a lower % would be wonderful.

  31. Ted November 6, 2012 at 2:21 pm -

    Used Discover Home Loans for a Re-Fi. Worst experience I’ve ever had with financing. Made promises they did not keep and cost me more than I wanted to spend for a loan. I’ll take responsibility, it was my mistake to go with Discover.

  32. Melissa Zook November 13, 2012 at 10:19 am -

    We went with Discover Home Loans, and it was the worst decision we ever made. They pre-approved us based on the fact that we had just moved to Texas and my husband who had been self-employed for 20 years, stay self-employed to show continued job history. We found a home based on what they told us, put an offer in, sold our house in Virginia, and then they proceeded to give us the run around. They kept asking for more and more information. Christopher Gavin, the loan processor, was absolutley rude and I had the hardest time getting in touch with him. Three days before closing, he stopped communicating with me, and the original processor, who was the only one their with a brain, called and told me that they were denying the loan because my husband was self-employed and they couldn’t “Sell” our mortgage. This was after they told us, that that was the only way. Here we were, planning on moving, planning on having settlement, and because they can’t benefit from it, they deny us. DON’T go with them. They lie, make things sound wonderful, make you jump through hoops and then screw you.

  33. Rachel November 15, 2012 at 4:44 pm -

    We were preapproved for a.mortgage, found what we wanted, and are now under contract. We had a satisfactory FHA appraisal. They’vs been giving us the run around on forms and document s for weeks. Then they set up a closing date. Monday, for Friday afternoon. Tuesday they started fussiing about wanting the measurements on septic aand well, we got that taken care of. Now they are telling us, the night before closing, they haven’t. Gotten the appraisal back from the FHA appraisal reviewer….. Seriously ran me around for the month, set up the.closing, and we are back to a problem with the appraisal wth…..horrible experience. They are blaiming it on the third party FHA appraisal, saying they won’t honor their close on time guarantee because it is not their fault. They say there is no one the appraisers answer to….again, we have the FHA appraisal in hand and it is for 10% ;more than selling price. SO STRESSFUL!

  34. Vli November 19, 2012 at 7:58 am -

    We were supposed to close with Discover today but their attorney – located in Columbia SC just 45 minutes away fisr called to say they would be an hour late then called 30 minutes after that to say they were not coming and would have to reschedule because Discover had not sent the paperwork. Has anyone else had experience in SOuth Carolina with this company? I am hoping it is as the gentleman fm Kentucky said – your experience may be based on where you are and how close they are?

  35. Robert November 20, 2012 at 10:49 am -

    Discover home loans!!!!!! Everyone PLEASE BEWARE!!!!!!!! I had applied for a loan two months ago. I have a purchase contract that expires November 30, 2012. I was pr-approved and signed the contract that I had to put $1000.00 dollars Ernest money down. I then paid discover 400.00 dollars for a appraisal that had already been done! So now I am at 1400.00 dollars total. I make about 55,000-60,000 a year. I have a credit score of 671! I was just told on November 19, 2012 that the underwriter will not approve the loan. I have had to call discover in Irvine, California just to get someone to call me back to answer my questions! Its the holidays and I have children! Our families lives are upside down and the home we wanted to purchase is not going to happen! I wish I would have tried a different company. So everyone whatever you do don’t mess your dreams up by going through discover home loans. Let me add this also but their website my loan status is completely generic and stays out if date in the loan process. Steer clear I made a BIG MISTAKE!

  36. Rachel December 9, 2012 at 6:24 pm -

    I comtmented on November 15th — we ended up closing on Thanksgiving Eve. Our closing was scheduled for three (the second time they scheduled it) and the didn’t make a final descion to approve the loan until 1230 that day, didn’t get the paperwork to the title company until after 3… it was a horrid experience. The rate is wonderful, the closing costs were tops…. but the approved us, told us everything was all set, then decided to order a second appraisal…. it was always something. Six weeks of HELL. Yes…we got the house, the payment is perfect, and we saved about 1000 off the closing costs quoted by our bank, but they put us through HELL….ROBERT — OMG… I feel you, we were out $1400 too and they fussed around to the very last minute.

  37. Julie December 13, 2012 at 12:04 pm -

    I would use Discover Home Loans AGAIN, if I had to repeat the home-buying process. I began kicking around the prospect of purchasing a home in August and connected with Discover. They pre-approved me, even though I had not planned to purchase until 2013. Lo and behold – I found the perfect home in November. I officially applied for a loan through Discover on November 20th or so, and I am closing tomorrow (December 14). The process has been seamless and the communication between the Discover staff (Jessica Ching and Jonathan Herndon) has been ABSOLUTELY professional and timely. As a testament to their efficiency – they ordered the appraisal two days before Thanksgiving, and we had a completed appraisal and full report less than 10 days later. I got a REALLY good interest rate (even with mortgage insurance – less than 4.2% for 30 yr) with Discover, and they reworked my HUD until I could maximize the usage of my seller’s concession. They worked HARD for me.

  38. Robert December 27, 2012 at 12:02 pm -

    Rachel I hope that 1000.00 don’t come back to bite you because mine was the same way to find out in the closing costs they never collected my years worth if mortgage insurance. Just got the bill and I owe 900.00!!!!!!!

  39. Rick December 27, 2012 at 8:38 pm -

    They are the worst of the worst. They give you a COMPLETE runaround after perqualifying. Then ask you a million times for docs. You give them and then tell you it’ll be soon. Then they ask you for even more docs. You give them. Then after two months they ask you for the exact same docs. Then they say constantly oh they are here I’m sorry. Then they don’t seem to understand SIMPLE financial things. Such as retirement accounts and other money accounts. Then they say oh your in underwriting. This is well after the promised date by a month. Then it’ll be more docs. Then they reject you EVEN THOUGH you have plenty of income and a credit score in the HIGH 700s!!!!! Then they said they will see if they can make an exception if you give another 10% down!!!!!! So, in essence they have been THE WORST company I’ve ever ever have seen in mortgages. If you come here DO NOT SAY YOU HAVEN’T BEEN WARNED!!!!! AND for those who said they had no trouble you are either making a half million dollars a year, lying, or work for them and trying to make it look like its a good company. THE WORST EVER.

  40. Jason January 8, 2013 at 12:06 pm -

    All these reviews are from people that get declined and are not explianing the REAL details as to why there loan was not closed. People do not realize that they should not deposit CASH into there bank accounts or file 2106 expensees to rob uncle sam. There are a million reasons a loan can be delayed or decliined but people wwant to blame the company not themselves. Everyone thinks they walk on water but the reality is your slandering a company without reveling the truth as to what happened. Look up bank of america or any big bank or company for thaqt matter and see there reviews, you could never make everyone happy. Discover is the best lender in the business period. Dont listen to these people

  41. George Breen January 30, 2013 at 5:13 pm -

    I had a difficult time with Discover in August/Sept., 2012. I hvw never been put through the ringer like I was with them. Several days of nothing and suddenly they need 30 documents right away. They have different people handling different steps and they start asking for the same information — like the data isn’t passed on to the next processor. I literally sent hundreds of documents from the internet to them. They actually held up processing my loan until I gave them an activity document for an account of $7.12. I told them I was not submitting this account for my holdings reported to them, so forget it. Finally, I had to send them an email page for the account that said “Beginning balance $7.12, Ending balance $7.12″ for the period they requested. Still they weren’t satisfied because the internet page was page 1 of 2 and I didn’t include page 2. I refused to send page 2 and got into an argument with them. They threatened to dissaprove the loan unless I complied so I sent it — nothing but unrelated ads on the page. When they asked me for items that I had previously submitted, I told them to find them themselves as I had already sent them in and I wasn’t going to do their jobs for them. If I weren’t retired, I probably couldn’t have sent all the documents to them in the time frame requested. But in the end I got a good rate — 2.625% for a 5 year ARM, but I did pay for it time spent and frustration.

  42. Wayne & Dar February 2, 2013 at 1:49 pm -

    We had an EXCELLENT home re-finance experience with Discover Home Loans. From initial phone call to closing it was only 2 1/2 weeks! Their communications were very clear as to what was needed. We used their mystatus.com website to provide all documents needed electronically within 24 hours of starting the loan process. Fees and the process were explained very well. Appraisal was paid for and completed within the first week. The appraisal fee was required upfront and then rebated at settlement into the closing fees/loan. The team worked very hard to complete the loan process and close quickly as to avoid an additional current mortgage payment due date. We are very happy with our experience with Discover Home Loans and our 3% rate! Thanks to Tara who kept us updated at all times and kept the team on task. Once the loan funded, our old mortgage was paid off within 24 hours. :o)

  43. Julie Janik February 4, 2013 at 10:31 am -

    I closed with Discover Home Loans in mid-December 2012. The entire process was extremely smooth and simple. They quickly provided pre-qual letters during my house-hunt. Then, as soon as I had a contract, I uploaded all documents to their online portal. My loan officers were stellar (quick to communicate – thanks Jonathan and Jessica!) and professional. We closed on the home EARLIER than expected.

  44. Valentina February 28, 2013 at 8:25 pm -

    I am in my mortgage process now with Discover Loan. …waiting and praying..

  45. Molly March 20, 2013 at 4:37 pm -

    I have been dealing with Discover Home Loans for over a month now. I’ve literally given them everything they’ve ever asked for, and then some…I feel like the next thing they’re going to ask for is my first-born, a la Rumplestiltskin. I’m getting extremely frustrated – my loan has been almost 4 weeks in “underwriting”, with no end in sight. The closing date has come and gone. No one ever answers the phone, but they’ll call you back seconds after you leave a message. I was pre-approved with them knowing, from literally the very first conversation, of my finances and the unusual circumstances surrounding them (alimony, bartender, self-reporting, cash payments, etc), but have also uploaded every item supporting these so that they know exactly where my money comes from, and where it goes. I’m not trying to hide anything. However, every hour or so, it seems like there’s another “question” that only I can answer, even though it is simple enough to follow the paper trail.
    After 2 weeks in underwriting, they came back saying I needed a co-signer. Fine. I had secured that person within hours, and by the end of 48 hours, I had all that person’s required documents uploaded.
    After calling daily for over a week to see if I could at least get a “guesstimate” of when the loan would either be approved or denied, I was given a follow-up phone call by one of the 4 people working on my loan, who explained she’d been sick. Totally get that people get sick, but no one else is working on this? Seriously? And then she had a list of things that needed “clarified” by the underwriter. All of which was easily found and explained in every document I had uploaded to My Status. Apparently the underwriter couldn’t be bothered to actually look for herself?

    All in all, I’m totally disgusted by what’s going on, and am at the point where I truly don’t care if I get this house or not. This whole process has been frustrating and stressful, and I can certainly say I would not recommend Discover Home Loans to anyone looking to purchase or refinance a home. I know I certainly will never use them again.

  46. Valentina March 26, 2013 at 7:04 pm -

    Molly, please keep us posted. Did you get your loan approved?

  47. Molly March 31, 2013 at 8:51 pm -

    Valentina, I’m still waiting to hear. I’ve signed my 2nd contract extension on the house, and the sellers are (rightfully so) wanting permission to continue showing the house. I could’ve refused, but I felt like they also shouldn’t be punished by Discover’s slowness. Right now, I’ve moved out of my house (due to it being sold), moved all my stuff into storage, and am staying at a friend’s house. I just wish I had a yes or no answer, so I can move (pun intended) on with my life! I’ll keep y’all updated.

  48. Robin April 6, 2013 at 6:20 am -

    SO frustrating!!. I have been in the refi process for 60 days. NO ONE has been able to provide me with a guess of when we would close. They keep saying 5-15 days. After threatenting to cancel the loan and move my business to another lender they were non responsive.

    I have given them EVERYTHING they asked for and even sold an investment property dirt cheap because they said it needed to be sold to refi. Now I find out from another lender that was not true.

    Additionally the loan officer Robert Bates made promises and commitments that he could not keep.

    Bottom line, Discover has a bunch of rookies running their home loan division and they could care less.

    I am baffled at why they spend so much money marketing and obviously so little effort on getting loans to close.

    But it did not take long for them to charge my Discover Card for the hefty appraisal fee.

    BUYER BEWARE! Dont waste your time.

  49. JAN MORGAN May 10, 2013 at 9:34 am -

    STAY AWAY! WHAT A RIP OFF! I applied for a low interest loan with them. They kept me hanging on having me send this paper that paper over and over again for OVER a year. I was not desperate for a loan but I thought for a low rate why not? Finally after a year of being jerked around they offered me a loan HIGHER that they first quoted and higher than my current rate on my house! STAY AWAY! I am out a couple thousand and no loan!

  50. Laura May 15, 2013 at 11:33 pm -

    I am in the process of closing my loan with Discover. The original plan was to go FHA 15yrs and our home value was higher than expected we ended up going conventional 15yrs. Now my problem is that I am going to have to pay out of pocket in order to close the loan. I am a bit upset about this because I was told I didn’t have to put any money out of pocket. The lender cost went up $200 and I am being charged for the interest rate I will be receiving. This is my first time refinancing and I’m starting to feel like these costs are coming out of no where. Any comments welcomed.

  51. John K May 24, 2013 at 4:16 am -

    In Feb of 2013, I applied through lending tree and was referred to Quicken and Discover. Discover at the time took the refinance. We went with a FHA streamline and was quoted 3.75%. I decided to drag my feet watching the market. It is now May of 2013 and refinanced at 3.275% with $1400 in closing costs @ 30 yrs. Which is not bad coming from 6.5%. Discover has been patient with me and when someone I was dealing with was out of the office, another person in the team would contact me and keep my loan on the move. Apparently some of the kinks was ironed out with them.

  52. Colin Robertson June 24, 2013 at 9:10 am -

    That’s an amazing rate John. Congratulations! Glad to hear you had a good experience. It should be noted that service will always vary widely with a lender, especially with such a large company with so many employees. But no matter who you’re dealing with, you need to stay on them to ensure the deal gets done quickly and correctly.

  53. shanna mundell June 26, 2013 at 8:19 am -

    So far, so good with them. Love my guy I’m dealing with. So nice and helpful. Hope we can close this deal!

  54. Toolmantim July 8, 2013 at 6:07 pm -

    Some of you evidently received some decent customer service… I definitely did not.

    I was approved but due to lack of communication and lack of follow-up by Discover Home Loans Mortgage Banker and her Assistant I was not able to capitalize on the approval

    PROCEED AT YOUR OWN RISK if you deal with Discover Home Loans!

    It was bad enough that I’ll be filing a B.B.B. complaint.

  55. Jill August 13, 2013 at 9:15 pm -

    I’m a first time home buyer. I contacted 10 different banks, lenders. I chose Discover because they were very competitive and beat every GFE from all the other companies, after negotiations. They also didn’t tell me one thing and send something different. Everything they said, they did.

    I locked a rate and we closed on time without a problem. Shane Etasami (loan officer) and Amber Thornton (account manager) were very patient, answered every telephone call, walked me through the document process and kept me apprised of everything happening. I’m not that computer savvy so I didn’t use their online document access but they had no problem coping with my internet naivete. I liked that everything was done by the book and they never gave me a reason not to trust them. There were no surprises in the loan documents and when I had questions or concerns, they got right on the telephone to discuss.

    I knew when my card would be charged, when I was no longer eligible for a refund and all the costs up front. There were no surprises and Shane knew after I locked, if I found a better rate with another company, I would leave him. Although I did find a slightly better rate 2-3 weeks into the process, I stayed with Discover because of the calm, professional manner of every employee with whom I interacted. I have enough drama in my life and didn’t need more with my home loan.

    The seller created last minute drama and I almost didn’t close on time, but not because of Discover Home Loans. Everything on my and Discover’s end was done, funded, ready and waiting 3 days early.

    I highly recommend them, especially Shane and Amber in the Irvine, CA office.

  56. Jello August 29, 2013 at 1:02 pm -

    Discover told us that the interest rate is higher if you are refinancing more than 1 property, is that true? We were waiting to lock in at a lower rate, on day is was 3.5, we called to lock it in but were told because we were financing 2 properties our rate would be higher…..were we lied to?

  57. Colin Robertson August 29, 2013 at 1:29 pm -

    Jello,

    If you’re financing two different properties, the rate could be higher for a number of reasons, such as one property being designated as a second home or investment property (they both can’t be a primary residence). Or are you saying it’s a two-unit property? That could increase the rate. Also it could be that your credit score took a hit if refinancing two separate properties.

    There are possibilities like that, but there shouldn’t be a specific rule for refinancing two loans vs. one. Ask them specifically why the rate is higher and let me know.

  58. Steve Clement September 7, 2013 at 6:45 am -

    Discover Home Loans wasted my time and my money.

  59. makoto hibiki September 12, 2013 at 10:51 am -

    I’m sorry to hear that several people had such a horrible time with Discover Home Loans but my experience has been the total opposite. They are one of the most professional, hardworking mortgage companies out there with quick turnaround times.

    I am a first time homebuyer and not only were they super patient with me – they also are super fast in the processing (When we submitted the offer, to be competitive, we gave the seller a quick closing date) and frankly, I love their Mystatus page where you can upload your docs. Fast and convenient.

    I would recommend my loan officer (David) and account manager (Shallica) to any of my friends/colleagues.

  60. floydd October 21, 2013 at 10:59 am -

    Well, reading some of these is quite scary as I am in the middle of trying to get financing. They talked me out of using another lender and I am going with these guys and so it been document after document and I’m approved with needing more documents and they’ll be right out with papers and bla bla bla and here I sit waiting and they arent even answering to email at this point. Am giving them a couple more hours as this funding is life-altering stuff for the lifes path my wife and I are on, and then I’m going to their boss.

  61. Jeff November 13, 2013 at 2:23 pm -

    EXACTLY as predicted by their competitors, Discover was unable to do the loan they proposed on our single family residence. It seems the loan officer “forgot” to include the mortgage insurance in his quote, even after he had assured me his quote was LPMI (lender paid mortgage insurance). Even the Good Faith Estimate was clear in this regard. Whatever his intent, it leaves me feeling that once again someone will say (or not say) just about anything to get your business, especially in this super competitive environment. His excuse was that he works 11 hour days and talks to upwards of 20 different people every day. While trying to stick me with the mortgage insurance, he was still saying we better get this locked in today. Also it was curious that he didn’t know how to spell “principal.” Big waste of time and effort.

  62. Colin Robertson November 13, 2013 at 3:39 pm -

    To his credit, I see mortgage veterans use principle in place of principal all the time. Not that that’s the issue at hand. Good luck with your loan.

  63. Susan November 22, 2013 at 1:02 pm -

    Do Not use this Company! Very unprofessional, horrible in returning phone calls. We have financed homes and rental property for almost 30 years and I have never dealt with such unprofessional behavior. Do not waste your time in dealing with this company!

  64. Monica June 1, 2014 at 6:15 pm -

    I have started the loan process with Discover and everything so far has been great. We are going to refi a 1st and 2nd that have a 5.3 and 7.5. Discover gave me a rate of 3.85 on a 15 year fixed. My credit score not the best it’s ever been either, it is around 650 and they are now just recently been able to offer this program to low credit score rating. I hope everthing goes smooth…..

  65. Fred Hyde July 10, 2014 at 11:32 am -

    Doesn’t look like things have changed for these folks. Just had clients get their hearts broken. These slugs, namely Tracy Barre, gave them a prequalified letter and we got agreement from the sellers. Twenty minutes after that, Discover Home Loan called and said that they were not able to finance them. Sellers took the other offer, even though it was lower because they had financing from a reputable lender. Bottom line, would not advise any of my sellers to take an offer seriously from someone who thinks they have financing from Discover Home Loans.
    Looks like the lending business is right back where we were 9 years ago, when they got us into this mess.

  66. Lisa August 4, 2014 at 12:36 pm -

    Do NOT use Discover Home Loans for any of your mortgage needs. The customer service representatives are extremely unprofessional and lack the knowledge required to assist borrowers. Stay away!!

  67. Lisa August 19, 2014 at 6:40 pm -

    Anyone told by Discover that after one refi you become a member of their “family plan” and all future refi are at no cost? Hard to believe but that was the promise.

  68. Colin Robertson August 19, 2014 at 8:22 pm -

    Haven’t heard of it, but if you have, do share. And just because it’s no cost doesn’t mean it’s the best deal. It can be no cost with a rate 1% higher than other lenders…

  69. Marie September 12, 2014 at 11:41 am -

    I simply love Discover Home Loans. Everyone I spoke to is professional and provided a timeline of what was needed to close in less than 35 days. I will be closing tomorrow and they gave me a competitive interest rate where I will be saving nearly $550.00 per month. Goodbye Ocwen hello Discover Home Loan. Thanks for evrything, I’m simply on cloud 9.

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