Bank of America Mortgage Loan Review

(July 2024)

Bank-of-America-Mortgage-Loan-Review

In This Article

Our Verdict

Bank of America stands as a prominent mortgage lender, emphasizing accessibility, diverse product offerings, and a balance of traditional and online services. You should note that the bank has a vast branch network where you can access in-person service, at the same time, enjoying the user-friendly online platform that facilitates convenient applications.

In spite of occasional criticisms, Bank of America’s reputation as a mortgage lender is deep-rooted in its product assortment, widespread reach, and efforts to balance traditional and online banking services.

Based at 100 North Tryon Street, Charlotte, you have access to different mortgage offerings including government-backed loans, jumbo loans, fixed-rate mortgages, adjustable-rate mortgages, and others.

To speak with the bank’s customer support for mortgage loans, call 800-669-6607. If you want to get more details about the bank’s mortgage loans and the solutions it provides, check out its official website via Bank of America.

Mind you, personal needs and preferences must be put into consideration as you go about your loan application process.

Pros

  • Earns high customer satisfaction ratings, as indicated by J.D. Power and Zillow.
  • Provides assistance programs for down payments and closing costs.
  • Eligible existing customers can enjoy discounts on mortgage lender origination fees and HELOC interest rates.
  • Has a well-developed website and mobile functionality.

Cons

  • Requires a mandatory enrollment in an online bank to access Home Loan Navigator.
  • Lacks options for renovation or construction-to-permanent mortgage loans.
  • Incurred a $12 million fine for reporting inaccurate mortgage application information to the federal government.

Who Bank of America Mortgage Loan Is Best For

Who-Bank-of-America-Mortgage-Loan-Is-Best-For

Choose a Bank of America mortgage loan if you:

  • Have a banking relationship with Bank of America.
  • Seek diverse loan options.
  • Seek the convenience of managing accounts in one place.
  • Prefer managing your mortgage accounts, making payments, and accessing resources digitally.
  • Love a bank with a national presence providing an extensive branch network.
  • Desire down payment assistance programs.

Who Bank of America Mortgage Loan Isn’t Right For

Bank of America mortgage loan may not be suitable for you if you:

  • Have a bad credit score or history.
  • Seek highly specialized loan programs.
  • Target the absolute lowest interest rates.
  • Have no U.S. citizenship or permanent residency.

What Bank of America Mortgage Loan Offers

What-Bank-of-America-Mortgage-Loan-Offers

Affordable Loan Solution Mortgage

This mortgage loan solution typically targets low-and moderate-income homebuyers, offering features to make homeownership more accessible. It comes with low down payment requirements, fixed-rate mortgages, flexible credit requirements, and more.

Fixed-Rate Mortgages (FRM)

If you’re seeking traditional fixed-rate home loans where the interest rate remains constant throughout the loan term, providing predictability for monthly payments, then choose this option.
Adjustable-Rate Mortgages (ARM)
Bank of America’s ARM comes with an initial concluded rate period, after which the interest rate adjusts periodically based on market conditions. Depending on the specific ARM product, adjustments to the interest rate may occur annually, semi-annually, or at other predetermined intervals.

Jumbo Loans

If you’re seeking higher loan amounts that exceed conventional borrowing limits, the jumbo loans can serve you well. You can use the loan to finance various property types such as primary residences, vacation homes, and investment properties. Of course, it comes with stringent qualification criteria.

FHA and VA Loans

Bank of America offers government-backed loans from the Federal Housing Administration (FHA) and Veterans Affairs (VA) if you’re eligible to apply. For the FHA loans, there is government insurance available, lower down payment requirements, fixed and adjustable rates, and flexible credit requirements. While the VA loans are exclusive to eligible veterans and service members, and surviving spouses to achieve homeownership.

Bank of America Mortgage Details

Loan Types

When it comes to mortgage loans, Bank of America’s offerings include Affordable Loan Solution Mortgage, Fixed-Rate Mortgage (FRM), Adjustable-Rate Mortgage (ARM), Jumbo Loans, FHA, and VA. So, you have a variety of options to choose from, depending on your needs, goals, and eligibility.

Affordable Loan Solution Mortgage

Bank of America’s Affordable Loan Solution Mortgage gives you a 30% down payment and a competitive rate.

To access this loan, you need to note the following information:

  • Homebuyer education from a HUD-approved counseling agency, especially if you’re a first-time homebuyer. For the record, HUD means “Department of House and Urban Development.”
  • You can access loan amounts up to $766,550 which comes with a 3% down payment and $1,149,835 with a 5% down payment in high-cost areas.
  • You need mortgage insurance to access this loan.
  • There are income and loan amount limits depending on where you live.

Tools and Resources

Bank of America offers quite a number of tools and resources to help you get the most assistance you need in your lending process. Leverage tools such as a mortgage calculator, closing costs calculator, first-time homebuyer information, and a 5-step guide on buying a home material.

Mortgage Rates

With Bank of America, you can see up-to-date mortgage rates for fixed-rate and adjustable-rate loan options and get tailored rates. Basically, the purchasing price starts from $60,000 – $2.5 million with a 5% down payment of the purchasing price.

30-year fixed popup 20-year fixed popup 15-year fixed popup 10/6m ARM popup variable 7/6m ARM popup variable 5/6m ARM popup variable
  • Rate6.875%
  • APR7.161%
  • Points0.886
  • Monthly Payment$1,314
  • Rate7.000%
  • APR7.342%
  • Points0.640
  • Monthly Payment $1,551
  • Rate6.250%
  • APR6.687%
  • Points0.769
  • Monthly Payment$1,715
  • Rate6.625%
  • APR7.384%
  • Points0.787
  • Monthly Payment$1,281
  • Rate6.250%
  • APR7.421%
  • Points0.999
  • Monthly Payment$1,231
  • Rate6.250%
  • APR7.627%
  • Points0.836
  • Monthly Payment$1,231

Note that the rates change daily, so you need to update yourself with the current rate.

Refinance Rates

Bear in mind that mortgage refinance rates at Bank of America typically fall within the average range or slightly below when compared to other major lenders. That notwithstanding, the rate you qualify for depends on factors such as your credit score, chosen refinance loan option, and your existing loan balance. You might want to consider these factors.

VA Loans

  • Takes a 0% down payment.
  • Offers exclusive loans to eligible veterans, service members, and surviving spouses.
  • Comes with competitive interest rates.

Where Bank of America Mortgage Loan Stands Out

Where-Bank-of-America-Mortgage-Loan-Stands-Out

Diverse Loan Options

Leverage Bank of America’s wide range of mortgage products, including fixed-rate and adjustable-rate mortgages, government-backed loans (such as FHA and VA), and jumbo loans, where you can choose the loan that aligns with your specific needs.

Down Payment Assistance Programs

Take advantage of the down payment and closing cost assistance programs Bank of America offers and apply for a home loan especially if you have limited upfront funds.

Nationwide Presence

Note that Bank of America has branches in multiple states across the U.S., giving access to operate from almost anywhere in the states. If you’re relocating or purchasing homes in different regions, this financial institution could be your mortgage ally.

Online Platform

Apply for a mortgage loan through Bank of America’s user-friendly online platform where you get to fill out application details, submit documents, and manage your account from anywhere across the states–provided you have internet coverage.

User-Experience

Experience an enjoyable browsing moment with Bank of America’s well-developed website which also has mobile functionality.

Verified Rating

Know that Bank of America has high customer satisfaction ratings from reputable sites such as J.D. Power and Zillow. These sites provide the most trusted reviews from happy, sad, and angry customers, so you know how trustworthy they are.

Where Bank of America Mortgage Loan Falls Short

Accuracy Violation

Has an existing past record that stains its image for being penalized with a $12 million fine for submitting inaccurate information about mortgage applicants to the federal government.

Online Banking Requirement

Access Bank of America’s Home Loan Navigator and explore some online features only when you enroll in online banking. For some borrowers, probably you, this may be a drawback especially if you prefer to manage your mortgage online. So, do well to confirm from the bank for further details.

How to Qualify for Bank of America Mortgage Loan

How-to-Qualify-for-Bank-of-America-Mortgage-Loan

Qualifying for a Bank of America mortgage loan involves meeting certain criteria related to your creditworthiness, financial stability, and specific requirements of the loan you’re seeking. Mind you, meeting these criteria is just a starting point because the lender must assess your overall financial picture before approving your mortgage application.

To qualify for a Bank of America mortgage loan:

  • Familiarize yourself with the specific criteria for the type of loan you’re interested in, whether it’s a conventional loan, FHA loan, or any other option.
  • Provide W-2s (for the last 2 years).
  • Make available your signed personal and business tax returns (including all pages and relevant schedules).
  • Provide a copy of the signed Purchase and Sales Agreement.
  • Have your latest pay stubs handy (covering the most recent 30 days).
  • Arrange for a most current three-monthly or year-to-date profit/loss statement.
  • Offer bank statements for all financial accounts, as well as your investments (not older than 2 months).
  • Check your credit score to know your chances of qualifying for favorable terms and rates.
  • Consider your debt-to-income (DTI) ratio, and make sure it is not more than 43%.
  • Have a consistent employment history and steady income.

How to Apply for Bank of America Mortgage Loan

While applying for a Bank of America mortgage loan requires similar documentation, remember that specific steps may vary, and it’s always advisable to contact the bank’s customer support directly to get more recent and personalized guidance based on your situation. Note, also, that Bank of America offers three channels through which you can access mortgage loans. Once you find a home that meets your preferences, budget, and needs, you can apply for a mortgage over the phone, online, or in person at any of their local branch.

To apply for a Bank of America mortgage loan over the phone:

  • Gather all necessary documentation including basic information about yourself such as name, contact info, social security number, and details about your income, employment, and assets.
  • Call Bank of America’s mortgage department at 800-699-6607 (Mon-Fri, 8 a.m. – 9 p.m. ET), to initiate the application process.
  • Discuss your mortgage needs including your financial situation to ensure accurate guidance and advice.
  • Choose your mortgage option as you consider factors such as interest rates, loan terms, and down payment requirements.
  • Note that each application process may differ considering different circumstances, individual needs, and preferences. So, be open to a few changes in the process.

To apply for a Bank of America mortgage loan online:

  • Go to the Bank of America’s mortgage application page on digital mortgage application.
  • Choose your goal by specifying if you want to buy a home or simply refinance the home you already own.
  • Answer the question prompt—if you’re buying a home—by indicating if you’re currently under contract for a property.
  • Answer the question prompt—if you’re refinancing a home you already own—by choosing any of the answers provided.
  • Login or create a digital account to continue your application process.
  • Complete the online mortgage application form.
  • Upload the necessary documentation.
  • Review your application carefully and make sure there are no errors or omissions before you submit.
  • Wait for a response from the bank.

To apply for a Bank of America mortgage loan in person:

  • Visit a Bank of America branch near you using the branch locator on their official website, or simply contact customer support for assistance.
  • Schedule an appointment to ensure that someone is available to assist you when you visit the branch.
  • Gather the necessary documentation including a valid form of identification.
  • Discuss the loan options, terms, and requirements.
  • Fill out the application form with the assistance of a mortgage specialist, if necessary.
  • Submit supporting documentation needed for the application.
  • Wait for a response while staying in contact with the mortgage specialist in case of any requests for additional information.

Alternatives to Bank of America Mortgage Loan

Wells Fargo Mortgage Loan

If you’re seeking to compare available mortgage options, consider a Wells Fargo mortgage loan. The lender offers a variety of mortgage options with online tools for application and personalized support. The bank also has an extensive network of branches across the country, making it the best fit for in-person consultations and support.
On the flip side, some customers have reported difficulties in communication and problem resolution, and stringent loan approval criteria, coupled with the fact that the bank has faced controversies related to unethical practices. But all in all, do your research to weigh your options and choose what’s best for you.

Chase Mortgage Loan

Chase is another viable mortgage loan alternative offering a range of home solutions. You get a variety of mortgage options including fixed-rate and adjustable-rate mortgages, FHA loans, and VA loans. The bank also offers online application and management where you can apply for loans, track your application progress, and manage your mortgage accounts online.
Bear in mind that Chase’s mortgage approval process may take time, and delays can occur. It’s up to you to check and see what works for you.

Citibank Mortgage

Consider Citibank mortgage when sourcing the best mortgage option for you. If you’re seeking a mortgage provider that has a global presence, offers international connections, and provides customers with access to a range of financial products and services, then Citibank Mortgage is the right choice for you. With Citibank mortgage, you have access to fixed-rate and adjustable-rate loan offerings.
However, you cannot get customized mortgage rates without contacting Citibank. There is no live chat feature on their website for real-time customer support. Also, if you’re seeking HELOCs and home equity loans, you probably should consider other lenders being that Citibank doesn’t offer those features at the moment.

Customer Reviews

If you’re considering a Bank of America Mortgage loan, pause, and take a moment to examine its ratings on ConsumerAffairs and Better Business Bureau. On ConsumerAffairs, Bank of America Mortgage loan has a 2.9 out of 5-star rating from over 2,000 reviews. While Better Business Bureau holds a 1.07 out of 5-star rating from 1,000+ reviews.

While these reviews are crucial in having a bird-eye-view of the overall customer experience with the bank’s mortgage loan services, it’s important to do your findings to know what aligns with your needs and preferences.

Pro Tips

Bank-of-America-Mortgage-Loan-pro-tips
  • Plan your budget and evaluate your finances to determine how much you can comfortably afford.
  • Maintain stable employment way before you apply for the loan.
    Communicate with your loan officer to address any queries and provide necessary documents.
  • Understand the concept of points and how they impact your interest rate.
  • Check and review your credit score before applying.
  • Save money to contribute a substantial down payment if possible.
  • Gather the necessary documentation long before you begin your application process to avoid unnecessary delays.

Recap

Seeking a mortgage loan from Bank of America comes with careful consideration and planning. The bank’s mortgage offerings provide a diverse range of options which include fixed-rate and adjustable-rate mortgages. You also get the convenience of in-person services considering the bank’s extensive branch network.

Nevertheless, be mindful of stringent eligibility criteria and consider comparing fees and closing costs. Check out alternative lenders and see their offerings, comparing rates and terms to see what works for you before reaching a conclusion.

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