First IB Mortgage Review 2019
The Smart Investor reviews are unbiased, and reflect the views of our editorial staff. We’ve collected the information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.
First IB – About The Lender
First Internet Bank or First IB (First Internet Bank of Indiana) was founded in 1997 by an entrepreneur David B. Becker, as one of the first state-chartered, Federal Deposit Insurance Corporation-insured institutions to operate without a physical branch with $543 million in assets. It was publicly opened on February 22nd, 1999 primarily in online retail banking and investment in securities.
Their main services included interest-bearing checking accounts, regular and money market savings accounts, certificates of deposit, individual retirement accounts, credit cards, and check cards. The bank also offered personal lines of credit, installment loans, and real-time transfers between accounts. On March 21, 2006, First IB became a wholly owned subsidiary of First Internet Bancorp, a single-bank holding company. Ten years after their opening in 1999, they launched out other types of products including their mortgage and home equity lines which blew up in the industry.
First Internet Bank has a base location in Fishers, Indiana but no other locations exist which I guess would make this company unique in some cases. It is solely an online based company and 90 days after opening, they had customers in all 50 states which made them a great success given the fact that they had no branches whatsoever.
- Strong reputation for outstanding personal service via telephone communication.
- ALL products offer competitive interest rates
- Operates in ALL 50 states
- Variety of products offered with great loan and rate opportunities
- Credit scores to qualify are a bit above average
- No actual branch locations
- No face to face contact
- $30 flat-fee for each occurrence of overdraft or non-sufficient funds.
First IB Mortgage Products, Fees, and Conditions
First IB offers a varied mortgages for different types of borrowers, here are the main products:
First IB offers 15 and 30 year fixed rate loans.
A fixed rate loan is usually for a borrower that has a monthly budget that doesn’t fluctuate. This loan has a fixed monthly principal and interest payment that will not change for the term of their specific loan. This is perfect for a borrower that has a specific budget in mind and that is staying in their home for 15 years or more. The customers can finance up to 97% depending on the type of loan and can choose between Conventional, or any type of government-sponsored loan which would include FHA and VA.
Adjustable rate (ARM) loans in terms of 1, 3, 5, 7, and 10 years
An adjustable rate loan payment, depending on what loan term you choose, will change at the end of the term which could be better than the initial rate given at closing or it can be worse based on market fluctuations. This loan is ideally for a borrower that doesn’t want to stay in the home for a long period of time or they want the property to be an investment. ARM loans do get a bad rap but make sure you do the right research before deciding.
FHA (Federal Housing Administration) Loans
Those are dedicated to a borrower’s that has a lower down payment, not so perfect credit and lower income with higher debts. This is a perfect loan for a first time homebuyer. You can borrower up to 96.5%. Depending on your credit score, your rate can be higher but if you have decent credit, minimum wages, a good amount of debt, lower down payment, this is the loan for you.
VA (Veterans Affairs) loans for active or retired military
These loans offer $0 down payment, if disabled or exempt, fees will be waived, and you have a lot more leniency with terms and conditions of the loan. You will be asked to provide quite a few more documents than regular loans but that’s better than having to pay much more in fees, a higher rate, and putting money down. For our Veterans and their families, we believe these are the perfect loan.
Home Equity lines of credit
These loans are perfect for a borrower that needs to consolidate debt or need repairs on their home, so they put a lien on their property that will give them a credit line where they can take out any amount of money they need during the duration of the loan. You can also take the full amount out if you wish instead of doing it in increments.
You also might want to consider a more traditional second mortgage loan. This will provide you with a fixed amount of money repayable over a fixed period. You might consider a second mortgage loan instead of a home equity line if, you need a set amount for a specific purpose, such as an addition to your home or major repairs.
First IB Mortgage Process – How To Get a Loan
Since First IB is an online based company, its website is full of valuable tools and information that can help any customer to select and manage the type of mortgage that fits the best for their needs. Such tools that I think are extremely necessary, especially for a first time homebuyer, is a mortgage calculator, affordability, help articles, videos, and daily rates. This is very helpful to any customer no matter what stage in the process you are at.
The process is easily accessible meaning, you can either contact a loan officer via phone or email. After you have selected and completed the online application, you will either receive a phone call or email from your loan officer or you will be given a loan officer’s information, so you can start your loan process. In order for your loan to go smoothly and quickly, you will need to provide the following information and documentation. Make sure you provide documentation for your most recent 2-year employment history and include your pay stubs and W2’s or if self-employed, signed federal tax returns.
In most cases of loans, you will need to provide some sort of asset documentation which would include bank statements. A lot of First IB’s accounts don’t require documentation in which case you would just need to provide identification and asset qualification. According to most reviews, the process for First IB is very simple, super easy on the customer and an average closing date from start to finish of less than 40 days. You will never need to worry about the quality of the work they perform or the urgency of the closing and funding. You are in great hands when it comes to this bank.
Should You Consider First IB Mortgage?
When looking over this bank and all of their products, services, customer awareness, reviews, and above all, their fantastic work ethic, even though this company has not been open for as long as some major big named companies have been, this bank has been open long enough with nothing but great reviews, wonderful products, and even better service.
For a bank to not have any complaints to the big consumer companies after 22 years is and should be a phenomenal accomplishment.