Tomo

Tomo offers rates that are competitive with national mortgage rates. Its rates are also backed by a price-match guarantee. If you find a lower mortgage rate elsewhere, Tomo guarantees to match it. This promise is valid for primary residences only, though, and it will only be honored once per loan. Tomo doesn’t price-match jumbo loans below a certain APR.

Even before you’re ready to go through the mortgage process, you can pre-qualify with Tomo, which doesn’t affect your credit score and can narrow down the price range for homes to consider.

Once you find the home you love, Tomo provides a preapproval letter — this step will result in a hard pull on your credit. If the seller accepts your offer, Tomo can help make the remaining steps of the process — closing, etc. — more efficient.

Tomo is a purchase-only lender that boasts a streamlined homebuying process and the most competitive rates on the market, but its loan selection is limited. As of publishing, Tomo offers loans for home purchase with 15- and 30-year fixed rates. Its loan minimum is $75,000, and it only funds purchases for single-family homes, townhomes, condos and multifamily buildings up to four units.

Tomo doesn’t offer government-backed loans, such as VA, FHA or USDA, and it’s probably not a good fit if you plan on purchasing a mobile or manufactured home or are looking for a construction-only loan.

Refinancing

Tomo does not currently offer refinancing options. Check out our guide to mortgage refinance companies for more information about this type of funding.

Tomo’s borrower requirements include the following:

• A credit score above 620
• A credit account in good standing
• U.S. citizenship, permanent residence with documentation or nonpermanent residence with documentation
• A minimum 5% down payment

To get better rates, you want a credit score higher than 620 — and be prepared to pay more than 5% down. If a 5% down payment seems too large, you might be looking at homes you can’t afford.

National mortgage requirements by type

Tomo charges no lending fees, but buyers still need to plan for closing costs. The company will include anticipated costs in your official Loan Estimate. Tomo says that it typically sees closing costs around 3% of the home purchase price.

Appraisal coverage is free on eligible Tomo mortgage transactions. This coverage eliminates any surprise costs at the end of your home purchase journey and ensures you’ll have the same APR, monthly payment and cash-to-close even if the appraisal is lower than expected.