In a Nutshell
- Best rates from network of lenders
- Personal home financing score
- Free loan consultation
- Only available in 31 states
- Only open to first-time buyers
- Strict credit report requirements
Morty at a Glance
Loan types: Purchase
Featured Loans: Fixed, ARM
Repayment terms: 15 or 30 years
Minimum Down Payment: 5%
Minimum Credit Score: 680
Best for: First-time home buyers
Morty is a licensed mortgage broker, but it is also much more than that. According to Morty, its mission is to empower first-time home buyers to confidently secure and finance their home purchase online. It accompanies its users through virtually the entire process, beginning with its unique Home Financing Score, then continuing through to pre-approval, making an offer on a home, securing the best rates from lenders, and locking and closing the loan.
Morty exists exclusively for first-time buyers purchasing a primary residence. It doesn’t work with people who are onto their second home purchase or looking to refinance an existing mortgage. First-time buyers face unique challenges, and Morty has produced an all-round package that can help users navigate these challenges.
Types of Loans/Products
Morty only supports conventional home loans. It doesn’t offer FHA loans, mortgage refinancing, home equity loans, renovation loans, or any other products. In addition to brokering conventional home loans, it offers the following features.
- Home Financing Score: Morty’s own personal checklist that communicates what you need to do in order to increase your ability to get a home loan.
- Pre-approval: Provide details on your property, down payment, income, and credit score. If you meet Morty’s eligibility criteria, a pre-approval certificate will be made available for you to download.
- Browse rates: View and compare daily rates from Morty’s network of verified home lenders in the one place. Choose the loan that best fits your needs.
- Free loan consultation: Morty’s team of licensed mortgage experts are available for free phone consultations. You can ask them any questions you might have about the mortgage application process.
- Lock and close your loan: Morty is a broker, meaning you never have to deal directly with your lender. Upload all your documents directly within your Morty profile. Morty’s agents will coordinate with your chosen lender to close your loan.
The Application Process
Morty enables first-time buyers to get pre-approved, compare mortgages, and close a mortgage from the one platform. Overall, the time from pre-qualification appears to be close to the average for a mortgage broker. Of course, processing times can vary based on your own profile and requirements.
To use Morty, you must meet the following requirements:
- Purchasing in one of the 31 states (plus DC) where Morty is currently licensed.
- FICO credit score of 680 or greater.
- Maximum debt-to-income ratio of 43%.
- Minimum down payment of 5% for single-unit homes, 20% for 2-unit properties, and 30% for 3- or 4-unit properties.
- On credit report, maximum of one 30-day overdue payment.
- On credit report, maximum balance of $2,000 on outstanding non-medical collection or charge-offs.
- Proof of steady and predictable income, including 2 years’ worth of receipts for any base salary, wages, commissions, tips, and bonuses. Morty doesn’t support inclusion of self-employment income.
- Proof of assets that you will use to pay the down payment and closing costs. Morty accepts the following sources of funds: checking accounts, savings accounts, cash balances from investment accounts, gift funds, seller credits, and money already paid.
Rates and Fees – The Bare Basics
Compared to other lenders and brokers, Morty offers very competitive mortgage rates. Its minimum rate of 3.750% (3.769%) APR is a great deal. Of course, this rate is only available to borrowers with perfect credit who meet Morty’s strict requirements. The following table presupposes a $600,000 home purchase with 20% down payment.
Help & Support
Morty has only been around since 2017 but it has already made a splash with customers. Judging by the Zillow customer reviews, users like Morty for the ease of use and hands-on attention from its loan agents. Morty offers all users ongoing consultations from a dedicated agent as part of using its service. To speak to an agent, use the live chat button on the Morty website or apply for pre-approval and wait for them to call you back. Waiting times are typically 5 minutes or less during business hours.
How This Company Compares
Morty beats most other competitors for lowest APR. The catch is that it has much stricter requirements than most other mortgage brokers and lenders. At a minimum, Morty only accepts first-time home buyers purchasing a primary residence with a credit score of at least 680. It’s tough to get accepted by Morty, but if you manage to break into the exclusive club, you’re in luck.
Morty offers something that is hard to find in the mortgage lending industry: a hands-on service that caters to a specific group of mortgage buyers. If you’re in the market for your first home, have great credit, and live in one of the 31 states in which Morty operates, this service is highly recommended. Morty helps users through every step of their mortgage application, making the process far less painful than it can be when going it alone.
Is Morty a direct lender? No. As a broker, Morty works with a network of lenders on behalf of home buyers. Morty helps arrange the loan, but the lender underwrites it.
Why isn’t Morty available in every state? Each state has unique licensing procedures. Morty is working on expanding to all 50 states in the future.
What types of properties are supported by Morty? Morty only accepts first-time buyers purchasing a primary residence. These include single-family homes, both unattached and attached; and homes with 1 to 4 units, provided at least 1 unit is used as the borrower’s primary residence.
What does Morty mean by first-time home buyer? This is anyone who has never had an ownership interest, be it jointly or solely, in a residential property before.
180 Varick Street, Suite 816
New York, NY 10014