Franklin American Mortgage Review: Pros, Cons, Rates, What to Expect

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There is a broad range of factors you should consider before deciding on a mortgage company. Some examples include the types of loans they offer, how long they’ve been in business, and what types of online tools they offer. This article is going to be a Franklin American Mortgage review. It will cover all these important elements and more.

Franklin American Mortgage – Details and Overview

In this incipient stage of our Franklin American Mortgage review, we are going to be discussing some general aspects of the company. They were founded in 1992, and their home office is located in Franklin, Tennessee. The company continues to maintain an A+ rating with the Better Business Bureau and has maintained their accreditation with them since 1994.

Franklin American Mortgage manages a network of 27 different retail banking locations for customers to choose from. The majority of their locations are scattered across the eastern portion of the United States. They have a total of three central locations. Two of them are in Colorado while the third one is in Nebraska. As for states where they can originate loans, your best bet is to contact a customer service rep to make sure you are in a qualifying area.

Franklin American Mortgage Loan Process Explained

Loan Programs to Choose from

pocket calculator with the text loan

This part of our Franklin American Mortgage review is going to focus primarily on the types of loan programs they currently offer.

  • FHA Loan. The offer addresses first-time home buyers only. This loan type requires a much smaller down payment than traditional mortgages. The minimum down payment for this program is 3.5 percent. Moreover, the credit requirements are much less strict than other loan programs.
  • VA Loan. For military personnel and their families, Franklin American Mortgage also offers VA loans. These loans do not require any down payment. They also have the added benefit of lacking private mortgage insurance requirement. Instead, they assess a one-time funding fee that is a small percentage of the loan. This often translates to substantial savings compared to other funding options.
  • USDA Loan. Franklin American Mortgage also offers a special loan type called a USDA loan. It’s also commonly referred to as a rural housing loan. These loans require no down payment. They eliminate PMI by assessing a funding fee like VA loans. The catch is that your property type has to be located in an approved area to qualify for this program.

The majority of these loan programs is available in generous varieties of fixed rate and adjustable rate. Fixed rate mortgages are perfect for users who value stability. They are often much easier to budget for long-term plans. For adjustable rate mortgages, these loans often have a substantially lower initial interest rate. Therefore, this can be very useful for saving money in the early stages of the loan. The exact rates will vary with most prime mortgages falling anywhere from three to four percent.

Understanding the Loan Process

This part of our Franklin American Mortgage review will cover the actual loan process. Now that you have an idea about the different types of loans they offer, you are ready to begin your initial application.

Put Together Your Financial History

The initiation will often center around a special process known as prequalification. A prequalification occurs when the lender checks your basic financial details and gives you an estimate of how much money they are willing to lend you.

These figures are used to show prospective sellers and real estate agents that you are serious about making an offer. To get prequalified, you will need to gather some essential financial documents.These usually are bank statements, paycheck stubs, and other financial documents from the past month. It also helps to gather your income tax documents from the previous year as well.

Once you have these documents put together, you can contact their loan origination department at 1-877-777-0987. The originator will ask you a variety of questions to determine the best loan products for you. Having the above-outlined documents ready will make the prequalification process go much more smoothly.

What Happens After You Decided on a Property

When things progress to the point of making an actual offer on a property, the mortgage company will do another check on your financial background. They will often do another credit check and will seek to verify your employment. It’s also common for them to request updated copies of your bank statement and paycheck stubs.

Now that they have verified your financial information again, the loan generally progresses to the underwriting stage. This is where the company will look at the financial details of the potential property. This way, they make sure that they meet the requirements of the loan type you selected. If all goes well, they will fund the loan. In the end, you will close within the next few weeks.

Account Management Options

This part of our Franklin American Mortgage review is going to focus on the account management options they offer. During the prequalification and underwriting phase, Franklin American Mortgage does not have any online account tools.

However, this changes once your loan has funded successfully and you have closed on your new home. They have a special online account portal that lets you check your current loan balance, set up automatic payments, check insurance information, and review important tax disclosures. You will need your account number and social security number to create your account.

PROs and CONs of Franklin American Mortgage

Pros

  • Multiple loan program types.
  • Available in several different states.
  • Competitive rates.
  • Important documents are available online for established customers.

Cons

  • Lack of online tools such as loan calculators.
  • Rate information is very difficult to come by on their website.
  • They have no online access options for the prequalification stage.
  • No weekend contact hours for customer service.

Franklin American Mortgage Customer Service Review

Franklin American Mortgage does a great job answering questions for their customers. The company works to make sure all parts of their mortgage are understood by new borrowers. Their website lists all of the contact information on one page which is very easy to locate.

For technical support, you have the option of contacting them via telephone. Interested clients can also send them an email through their online support form. For customer service inquiries, you will have to contact them via telephone Monday through Friday from 8:30 am to 8 pm EST. While the lack of weekend hours is a bit frustrating, Franklin American Mortgage does a good job keeping the call waiting times down.

Contact Information

business person in black suit holding in hand bright contact icons of a phone and email

Final Word

Based on the findings in our Franklin American Mortgage review, they are an ideal pick for your mortgage needs. While they do lack online resources for new customers, they offer a broad range of mortgage types. They also have fairly competitive rates. For those of you who have already used their services, feel free to tell us about your experience in the comments section.

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