Wells Fargo Mortgage Review 2024
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Our Take
4.5
Wells Fargo has significant upsides for some sets of borrowers, but its shortcomings may be hard for others to overlook. Sample rates are easy to view, but can't be customized. Assistance programs are generous, but have fairly narrow qualifications. And while the lender earns solid scores in our rankings, its consumer trust track record is rough. Most likely to appeal to borrowers who already bank with Wells Fargo.
Pros
- Sample rates are shown for various loan products, along with the type of borrower and loan that would get them.
- Offers generous down payment and closing cost assistance programs for qualified borrowers.
- Market leader in number of jumbo loans and refinances originated, according to the latest federal data.
- Rate-and-term refinance interest rates offered are lower than average, according to the latest federal data.
Cons
- Home loans business is broadly focused on existing bank customers.
- Doesn’t offer specialty home loans or equity borrowing (home equity loans or HELOC).
- Scandals and government actions have damaged consumer trust in recent years.
Lender | Min. credit score | Min. down payment | |
|---|---|---|---|
580 | 3% | Visit Lenderat New American Funding at New American Funding | |
620 | 3% | Visit Lenderat NBKC at NBKC | |
580 | 3.5% | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
Wells Fargo is a large, national bank based in San Francisco. Loans are available in all 50 states and Washington, D.C.
🏠 Popular loan types include: Fixed and adjustable rate; conventional; FHA; VA; jumbo; rate-and-term or cash-out refinance
In January 2023, Wells Fargo announced that it was scaling back its mortgage operations, and would be focusing on home loans for existing customers and for borrowers in underserved communities. This shift is evident in the lender's special programs.
Jumbo loan borrowers with substantial assets in Wells Fargo accounts — $250,000 or more — can receive an interest rate discount.
Borrowers who are buying a home in an eligible area and earn 80% or less than that area's median income can get up to $5,000 in closing cost credits.
Qualified borrowers buying a home in, or relocating from, nine metro areas in the U.S. can get a $10,000 grant toward their down payment.
» MORE: How to apply for a mortgage
How we score Wells Fargo mortgages
Every year, NerdWallet writers and editors use the latest data and independent research to score lenders on an overall rubric, reflecting factors that are most important to mortgage borrowers. Select Why This Category Matters below to learn more.
Wells Fargo has a NerdWallet home loans rating of 4.5 stars overall. Here’s a breakdown of this year’s score.
Category | Star rating |
|---|---|
Average mortgage rates and fees | |
Mortgage rate transparency | |
Variety of loan types | |
Customer experience |
- Why This Category Matters
Average mortgage rates and fees (30%)
Our team analyzes federal data to compare mortgage lenders’ origination fees and offered mortgage rates, measuring annual averages across all loan types, as reported by the lenders. The lowest combination of average rates and fees earns the highest star rating in this category. (It’s worth noting that loans considered higher risk, including those such as FHA loans that are easier to qualify for, often have higher interest rates and fees.) Pro tip: In some cases, paying upfront fees may lower a borrower’s mortgage interest rate.
Mortgage rate transparency (25%)
We check how straightforward it is to comparison-shop rates online. NerdWallet’s transparency ratings are higher for lenders that post sample rates on their sites, and highest for sites with self-serve tools that allow shoppers to see what rates might be like for their particular loan. Pro tip: Borrowers who compare customized rate quotes by applying to three or more lenders could save thousands of dollars over the life of their loan.
Variety of loan types (25%)
Finding the right mortgage is different for each borrower. The highest star ratings in this category are awarded to lenders that our research shows offer a wide range of loan types, improving the odds that a borrower will find the best match for their needs: options for purchase and refinance; fixed-rate and adjustable-rate loans; government-backed FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.
Customer experience (20%)
How easy is it to interact with this lender? The highest-rated lenders in this category offer features that are convenient and clarifying for borrowers, such as: an online application, multiple customer service options, a helpful mobile app and candid closing timeline communications.
Wells Fargo earned bonus points for offering first-time home buyer assistance, as well as loans for buyers with low credit scores.
What borrowers say about Wells Fargo mortgages
NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To help you understand borrowers’ subjective experiences, NerdWallet has gathered customer satisfaction ratings from J.D. Power and Zillow. We also contacted Wells Fargo customer support.
→ Below-average score in J.D. Power’s 2023 U.S. Mortgage Origination Satisfaction Study. Mortgage origination covers the initial application through closing day.
Score: 714 out of 1,000. Industry average for origination is 730.
→ Above-average score in J.D. Power’s 2024 U.S. Mortgage Servicer Satisfaction Study. A mortgage servicer handles loan payments.
Score: 616 out of 1,000. Industry average for servicing is 606.
→ Excellent customer rating on Zillow.
Customer rating: 4.96 out of 5, as of the date of publication. Rating reflects more than 4,300 customer reviews.
🤓 Our Nerds say...
Unsurprisingly for a large bank, Wells Fargo offers plenty of ways to get a loan and access customer support. You can apply for a mortgage on their website or through their highly-rated app. If you're not already a Wells Fargo customer, it may make more sense to start on their actual website, since you don't need to have an existing account. When we called their dedicated mortgage phone number, we were quickly connected with a rep. And if you're looking for in-person service, Wells Fargo also has mortgage offices in 19 states, in addition to its many bank branches.
Wells Fargo and consumer trust
Wells Fargo earns high marks in our analysis for its loan variety and digital tools, but in the past we've penalized the lender's star rating due to recent findings of wrongdoing. Over the past eight years, federal and state regulators have levied billions of dollars in fines against the bank, including redress for mortgage customers. In late 2022, the bank was fined for improperly assessing mortgage interest charges and improperly repossessing homes, among other violations.
Since Wells Fargo wasn’t penalized by a regulatory agency this year, its current NerdWallet star rating is not impacted. When shopping for a mortgage lender, do an online search to see if the company is in the news, and why.
Alternatives to a home loan from Wells Fargo
We recommend comparing mortgage rate offers from three or more lenders.
U.S. Bank and Bank of America are also large banks that do a considerable business in jumbo loans.
Borrowers looking for down payment and other assistance programs may want to consider Flagstar.
» MORE: Best mortgage lenders
More from NerdWallet
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: average mortgage rates and origination fees, rate transparency to consumers, variety of loan types (purchase, refinance, fixed and adjustable, for example) and customer experience. Among the factors we consider in these categories are: options to apply for home loans online, typical time to close, mobile app experience, level of detail about mortgage rates on lender websites, and NerdWallet’s own analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These and other items inform detailed rubrics, which generate ratings from 1 star (poor) to 5 stars (excellent). Read more about how we rate mortgage lenders here.
