On the hunt for a home loan? Chase and Navy Federal are probably on your radar. But who’s really giving you the best bang for your buck? Navy Federal, a known hub for veterans seeking home loans, and Chase, the stalwart bank, have their own strengths and weaknesses. Here’s the lowdown on how they compare, and why Tomo Mortgage might just blow them out of the water.
The showdown
Chase: the classic bank with a twist. Established in 1955, Chase has a long history and a nationwide presence. You get face-to-face interactions with their loan officers, which sounds great, but their customer reviews tell a different story—just 2.7 stars. What’s going on here?
Navy Federal: a military favorite with some legal questions
Navy Federal is a big name in home lending for military families, with 55% of its loans being conventional and 45% VA. However, a civil rights lawsuit filed in late 2023 accuses the credit union of discriminatory lending practices against Black and Latino borrowers. As of March 2024, Navy Federal is seeking to dismiss the case, leaving questions about how this could affect their future lending practices.
Tomo Mortgage: Launched in 2020, Tomo Mortgage is here to shake up the industry. We offer killer rates, zero lender fees, and a process that’s all about making home buying easy and stress-free. Our customer reviews? 4+ starts on every review platform: Consumer Affairs, Google, Bankrate, Zillow, etc. We’re not just a breath of fresh air—we’re a whole new way of doing things.
The breakdown
| Lender | Navy Federal | Chase | Tomo Mortgage |
| Founded | 1933 | 1955 | 2020 |
| Lender Fees | $2,200 per conventional loan, $1,000 per VA loan* | $2,867 per loan* | $0 |
| On-Time Close Rate | Not reported | Not reported | 98% |
| Customer Reviews | 1.3 stars on Consumer Affairs | 1.2 stars on Consumer Affairs | 5.0 stars on Consumer Affairs 4.95 stars on Zillow |
| Employee Reviews | 4.1 Stars on Glassdoor | 3.5 stars on Glassdoor | 4.1 stars on Glassdoor |
How to judge mortgage lenders
- Interest rates: Don’t get fooled by flashy numbers. Always compare the “par rate” with 0 points and check out the APR (Annual Percentage Rate). This is your real cost of borrowing, so get the full picture before signing up.
- Lender fees: Also called “origination fees” or “application and processing fees, which Navy Federal and Chase charge over $1,000 in per loan. At Tomo Mortgage, we’re lender fee-free, saving you thousands of dollars at closing.
- On-time close rate: This is how often lenders actually close on the promised date. Industry standard? About 40%. But Tomo Mortgage –flexing a 98% on-time close rate, and we’re proud of it. Other lenders don’t even bother to share this info, but it’s a huge deal.
- Pre approvals: While some lenders don’t take the time necessary to prepare a strong pre approval and offer letter, this is critical to making a successful offer on a new home. Tomo Mortgage’s online pre approval only takes 15 minutes, and it includes a soft credit check—but way more reliable when you’re making an offer on a home.
- Customer satisfaction: If you’re finding it tough to trust what lenders are telling you, one of the best ways to gauge their reliability is by looking at reviews from people who were once in your shoes. Did those customers have a smooth experience with the lender? What went right—or wrong? Navy Federal and Chase’s customer satisfaction certainly leave room for growth.
- Employee reviews: Insights into employee satisfaction can reveal a company’s values and transparency. Unhappy employees often lead to bad overall experiences. (See what their engineers have to say, for example.)
The verdict: Navy Federal or Chase
If you value emphasis on a military community, Navy Federal could be worth considering. They excel with VA loans however their questionable lending practices and low customer satisfaction may be a reason to pause.
For most people the most important factor is the rate. Here at Tomo Mortgage our rates are typically 0.48 points lower than other lenders.
So, we’re obviously biased, but we’d say don’t choose either. Tomo Mortgage has lower rates, lower fees, and better reviews. It’s a pretty obvious choice.
*sources: Business Insider Mortgage Reviews: Navy Federal, Chase, and HMDA data from 2023
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.