HSBC Mortgage for the US Review: Pros, Cons, Rates, What to Expect

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HSBC Mortgage is a very popular option to consider for both first-time homebuyers as well as more experienced individuals. In our article, we’re going to be discussing the various aspects of the application process. We’re also going to review certain important features like their customer service as well.

HSBC Mortgage – Details and Overview

HSBC Mortgage is a division of HSBC Bank. In total, they are the world’s seventh largest bank and currently holds an estimated $2.74 trillion in assets worldwide. As far as mortgage origination areas go, they are able to provide mortgage solutions for all 50 states in the United States to both residents and qualified foreign investors.

HSBC Mortgage also functions as a mortgage servicer and collects payments from its customers actively. Using these payments, they make deposits into escrow accounts as well as apply the remaining balance to principal and interest payments. They offer a wide range of account management options via telephone, online banking, as well as in person at participating branch locations.

HSBC Mortgage – Loan Process Explained

Understand The Loan Options

At HSBC Mortgage, they currently offer a wide selection of loan program types. The most common types of mortgages are FHA, VA, and traditional prime loans. With FHA mortgages, these are designed for first-time home buyers and carry much more flexible credit qualification requirements. In addition, they also only require a minimum down-payment amount of 3.5 percent.

With VA loans, you must be a qualified member or a previous qualified member of the armed forces and certain civil defense groups. These loans have the advantage of flexible credit requirements as well as no down payment minimums. You also avoid private mortgage insurance with these types of loans as well. Instead, you pay a single funding fee at closing that is a percentage of your loan amount. With both FHA and VA loans, the typical rate right now is approximately five percent.

With prime loans, these are designed for established customers who have likely already bought a home before and are seeking a second property. The credit requirements and down-payment amounts are also slightly higher than the other two loan program types that were mentioned. However, prime mortgages do have a slightly better interest rate at approximately 4.25 percent for a 30-year fixed option.

HSBC Mortgage also offers specialty loan programs like their Premier Deluxe Mortgage and their Advanced Deluxe Mortgage. These loans are designed for much larger property types with a higher price tag. The current maximum lending limit on these types of loans is $3 million. These loans are also suitable for qualified international investors who have established credit in their home country as well.

Choose between Fixed or ARMs

The next important thing you should decide on is the type of financing structure you prefer. For most mortgages, they can be either fixed or adjustable. With fixed mortgages, you have the benefit of a mortgage payment that will stay more or less the same throughout the life of the loan. This makes it much easier to budget for in the long-term. This is generally the more popular option for many homebuyers.

With ARMs, short for adjustable rate mortgages, they have the advantage of a much lower interest rate period for a specific period at the beginning of the mortgage. This can be very beneficial for people who are trying to make improvements to their home during the first few years.

A common strategy is to refinance to a fixed rate mortgage before the rates begin to change on the mortgage. ARMs are also very popular during periods where the rate is higher than average and is expected to drop. Once the preset payment period has ended, the rate will adjust according to current market trends.

Prequalification

You should now have a sound understanding of the types of mortgages that HSBC offers. With this knowledge, you are ready to begin the prequalification stage. The prequalification process typically involves a soft pull on your credit report and requires certain documents to complete.

Most mortgage professionals will request payment information from the past month. Having a prior year copy of your tax returns is also a great idea to make this process easier. Using this information, the mortgage professional will estimate the maximum amount you can likely afford to pay each month. They will often give you a prequalification letter to take to your real estate agent to use while you are shopping for homes.

To get started with the prequalification process, you can contact HSBC at 1-866-731-4722. You can also work with a mortgage professional directly in your area by using their mortgage consultant locator tool.

Moving onto the Application and Underwriting

At this stage of the loan process, you should have found an ideal subject property and are ready to make an official offer. During this process, timing is critical. It is crucial to maintain your financial standing. You will have your employment verified. Furthermore, an actual credit report will be pulled to make sure you qualify for the loan program type you were originally interested in.

You will also be expected to provide fresh copies of your payment details and bank statements. Be sure to maintain your savings balance for any relevant down-payments that you will be expected to make once the loan is ready for closing.

Another step in this process involves a home inspection and appraisal. Using this information, the underwriters make sure that the property in question meets specific criteria for the loan program you are currently applying for. If they find any issues, they will notify you. Nonetheless, you can attempt to work with the seller to resolve them.

If all goes well, you should expect to close on your house within two to four weeks. After closing, the house becomes yours, and you will receive your keys. You will also receive the payment remittance information for your first mortgage payment as well.

PROs and CONs of HSBC Mortgage

Pros

  • Available in all areas of the United States.
  • Wide selection of loan programs to choose from.
  • Online account management options for established customers.

Cons

  • Lack of online application tools.

HSBC Mortgage Customer Service Review

Overall, HSBC has maintained a popular image with its customers by delivering excellent customer service. They have a wide selection of online resources that can easily answer most common questions for their customers. In addition to telephone support, they also have a live chat service that can answer many questions as well.

Contact Information

Final Word

Based on our research, HSBC Mortgage is an excellent option for your home buying needs. They offer a wide selection of mortgage programs and have an impressive collection of online tools that new borrowers will find helpful. If you have experience working with HSBC Mortgage, tell us about it in the comments section.

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