Bank of America provides multiple loan options, competitive rates on mortgages rising, high-tech customer support as well as a step-by-step walk-through in the underwriting process since it works to make getting a mortgage easier, says John Schleck, senior vice president for centralized and online lending.
Ideal for borrowers who prefer a regular bank
Bank of America offers several loans with low down payments, and existing customers could get a price reduction on fees. It’s one in the largest banks on the globe, but Bank of America doesn’t desire to be known simply for its mammoth size. Then again, being one in the biggest comes with its advantages, especially in mortgage lending. Let’s take a look at how Bank of America Mortgage stacks up.
Bank of America mortgage products
Seeking to interest cash-strapped house buyers who don’t fit into the traditional lending box, Bank of America began offering a unique low-down-payment mortgage recording. The Affordable Loan Solution mortgage requires a down payment of just 3% without mortgage insurance premium. It also issues jumbo loans and government-insured products, for example, the Federal Housing Administration and Veterans Affairs loans.
Another personal loan is tailored to doctors who could be short on cash for the down payment but that has strong earnings potential, Schleck says.
This program allows borrowers to put down just 5% and it has no mortgage insurance requirement. Bank of America offers loans approximately $5 million. If you’re already a bank customer, you could qualify for a lowering of $200 to $600 inside mortgages lender origination fee.
Convenience and options
The lender which now accepting alternative credit data, for example, utility and rent payments for some of the company’s loan products – a major departure from the traditional underwriting model. This shift represents a brand-new a “holistic picture” approach toward clients’ finances, Schleck says.
When are applying to get a Bank of America mortgage or refinance, you have many options: in person at the local branch, on the phone, scheduling a consultation online for phone or in-person consultations, or online through its pre-qualification tool. High-tech service Earlier in 2010, Bank of America launched Home Loan Navigator, a web-based mortgage portal that lets you stay plugged in throughout the lending process, via desktop or mobile app.
After a preliminary consultation with a loan officer, you could make an account and upload documents, download loan disclosures, track the progress of the loan and e-sign paperwork. The bank also offers in-house video chat with loan officers at 700 of their branches if an individual isn’t on location, Schleck says.
Where Bank of America falls short
It offers its own products and rates only, which may or might not have the most effective terms on your situation. In online consumer complaints, customers report delayed closings, slow processing times and inconsistent communication. As one from the largest banks in the world, it’s often linked to high-profile litigation costing vast amounts of dollars – costs it could pass on to customers inside the form of higher fees and interest levels.
Bank of America does best lots of different mortgage purchase and refinance products in order to meet virtually any financial need. It offers an entire suite of online and mobile tools to borrowers. It also provides its very own 97% loan-to-value first-time home buyer loan without having mandatory mortgage insurance, in addition to a similar program for doctors. It’s also impossible to ignore the bank’s recent string of federal penalties and consumer complaints related to its conduct being a mortgage company.
That said that JD Power’s 2016 survey of customer happiness found out that Bank of America scores only a few points below the industry average for mortgage originators, suggesting how the bank may have taken steps to raise its quality of service in this region. If you manage to get the right loan officer at this bank and remain as much as date with the facts of your payment schedule, then Bank of America’s reduced rates may end up as being a good chance for financing your first home purchase.
Although we found a better type of home loan and lower high closing costs with Bank of America for the homeowner, there is a greater risk of problematic customer service in your mortgage term. Bank of America has 1000s of branches in many states so that it is a simple option for most consumers, and its particular online tools consistently estimate competitive costs for all of its mortgage products. Homeowners living inside Midwest region may find coverage sparse since the region is dominated by banks like US Bank.
Mortgage Loan Products at Bank of America Bank of America now offers something known as the Affordable Loan Solution, a fixed-rate creation that offers first payment only 3% over 25 or 3 decades. While this minimum payment is even lower than the three.5% the floor on deposit for FHA mortgages, the Affordable Loan Solution® is bound to certain property types and primary owner-occupied residences. Customers looking at this product may also be necessary to take part in homebuyer education provided by a government-approved counseling provider.
As one with the three largest national banks, Bank of America’s role like a mortgage lender has it providing practically every popular mortgage product available within the country. Bank of America offers choices tailored to borrowers seeking a lower deposit on the primary home.
FHA home mortgages is usually a cost-effective path to home ownership, with minimum down payments from 3.5%, while VA loans sometimes require no deposit in any respect from families of qualified veterans. Dozens of banks and direct lenders provide these government-backed mortgages, however, the low rates on Bank of America’s other products advise that it can possibly provide an improved deal on FHA and VA loans.
How Do Bank of America’s Mortgage Rates and Fees Compare?
To obtain an improved picture of what you will pay on the mortgage with Bank of America, we used its online mortgage tools to get yourself a quick estimate of rates and high closing costs. We relied on a typical borrower profile that included an investment expense of $198,000 plus a 10% advance payment, with good credit and $58,000 in annual household income. All things held equal, Bank of America’s estimate produced the lowest monthly payment one of many three major banks.
Compared to Chase or Wells Fargo, Bank of America offers lower rates for the most popular mortgage types but requires now more money upfront rolling around in its closing costs. If you’d like to observe Bank of America’s mortgage rates can rival today’s market, use our comparison tool below to find quotes for your area.
Besides 30-year mortgages, Bank of America also offered the best rates on 15-year fixed price loans and 5/1 ARM mortgages. While each bank uses different assumptions for the online quotes, these numbers present a reasonable indicator of where you will probably find a conversation with all the loan officers each and every bank. However, a closer inspection at Bank of America’s record of customer care suggests that this bank’s lower fees and rates could actually certainly be a case of having what you spend on.
Where Can You Get a Mortgage With Bank of America?
Obtaining your mortgage coming from a national brand like Bank of America guarantees a measure of predictability in terms of terms and pricing, factors which smaller local banks may not define as consistently. However, you might find that big banks won’t provide all the customized care with regard to assisting you to manage the mortgage.
Mortgage defaults hurt the lender as well because borrower, so local banks is often more dedicated to managing each housing loan, whereas a giant company like Bank of America might see one foreclosure as being a drop in the bucket. Bank of America currently operates more branch locations than almost any other bank inside a country, with concentrated coverage along the East Coast and West Coast.