Bank of America Home Loan Mortgage Review, Should You Consider? [2022]

If you want to work with a major national bank and have access to a branch where you can speak with a mortgage expert about your loan, Bank of America can be a wonderful choice. Bank of America is a reliable lender to think about if you want a variety of loan possibilities.

However, Bank of America also levies higher up-front fees than some lenders online. Additionally, it receives poor ratings for customer service, which highlight lengthy wait times and difficulties reaching the appropriate person to address a query.

Look elsewhere if you’d want to work with a smaller lender that offers superior service or an online-only lender that can have reduced fees.

Mortgage Rates at Bank of America

Depending on the loan you choose, the duration of the repayment period, and personal elements like your debt-to-income ratio, and credit score your rate of interest for a Bank of America mortgage loan may change.

You can enter information on the Bank of America website to discover what rates you may be eligible for. Additionally, you have the option to 90-day rate lock online. 

You’ll need to enter information such as the following:

• The cost of purchasing the property

• The Down payment

• Your ZIP code

Additionally, fees are something to be prepared for when requesting a Bank of America loan. Depending on the loan package you choose, these fees could change.

Application & Eligibility: How To Get a Bank Of America Home Loan

Bank of America provides a wide range of loans, some of which are geared toward low-income borrowers and those who require government-backed loans owing to bad credit.

Loans are accessible to a wide range of borrowers thanks to the number of possibilities.

However, in general, if you have a credit score of a minimum of 620 and a 10% to 20% down payment, you’ll be eligible for better terms especially if you require a conventional loan rather than an FHA or VA loan.

How To Apply For a Bank Of America Home Loan

You can prequalify online for a mortgage with Bank of America. This will give you a sense of the possible pricing.

To arrange a face-to-face meeting with a loan officer to receive help with the mortgage application process, you may either phone 866-466-0979 or go to the website.

Some Bank of America clients may be eligible for same-day pre-approval. However, there are a number of variables that will affect how quickly your loan closes, like your financial qualification and the supporting documents needed to demonstrate your income and assets.

Other information you must provide

You will require the following to apply for a mortgage:

• Your name, address, and Social Security number so that the lender may do a credit check.

• Income documentation, such as tax returns, W2s or 1099s from the last 2 years, and pay stubs from the previous 30 days. Also required is a current profit/loss statement if you’re self-employed.

• Account statements from banks and investments can be used as evidence of possessions.

• A copy of the Purchase and Sales Agreement that you have signed.

Your lender could demand more information, depending on the loan you apply for.

Pros & Cons of Bank Of America Mortgage

Pros

• You can choose from a variety of loan programs, such as fixed-rate or adjustable-rate mortgages, jumbo loans to buy a more expensive property, government-backed loans for fewer qualification requirements, or Bank of America’s Affordable Loan Solution mortgage for first-time homebuyers.

• Your ability to finance a new home is made easier by the fact that you may be eligible for loans with down payments as low as 3%. The bank also makes it easier for you to purchase a property by assisting you in becoming eligible for grants that cover closing expenses or down payments.

• Existing customers of Bank of America may be eligible for reductions on mortgage application fees.

Cons

• Many clients have given Bank of America negative feedback regarding their customer service.

• Because of its size, Bank of America might not be the best choice if you prefer working with smaller internet lenders or family-run mortgage loan companies.

• Compared to certain online banks or credit unions, Bank of America charges clients higher upfront fees.

Key Points:

• Bank of America is one of the biggest banks in the nation, you have access to a variety of local offices for assistance with the mortgage application process. You may also complete a substantial portion of the application process online.

• Bank of America offers conventional and government-backed loans, fixed- and adjustable-rate mortgages, as well as its own Affordable Loan Solution, which enables borrowers with lower incomes to obtain loans with just 3% down.

• There are many complaints about Bank of America’s customer service from both current and prospective customers who have mortgages with the bank.

• Almost 10% of the nation’s bank deposits are handled by Bank of America, the second-largest financial organization in the United States. Through Merrill, it offers investment services in addition to a broad range of financial services.

• With its extensive selection of mortgage loans, Bank of America tries to make buying a house simple. Finding a mortgage is simple and can be done online or in person at a nearby bank.

• You can use this Bank of America evaluation to determine whether you need to think about obtaining a mortgage from the company.

Frequently Asked Questions [FAQs]

Is it good to get a mortgage with Bank of America?

A refinance or mortgage with Bank of America is a smart move. Although it receives above-average marks in JD Power’s 2021 customer satisfaction survey, it may not stand out for its customer service, on the plus side, it offers rates that are on average lower than those of many other major lenders.

How hard is it to get a mortgage with Bank of America?

To be eligible for a mortgage with Bank of America, you must have a minimum FICO credit score of 600 and a debt-to-income ratio no higher than 55%. However, there could be different requirements for every loan product. Most loans don’t have a set minimum lending amount.

Why is Bank of America selling my mortgage?

There are two main reasons why lenders often sell loans. The first is to make capital available so that it can be utilized to lend money to other borrowers. The other is to create income by selling the loan to some other bank while keeping the right to execute the loan.

How long does it take to close a mortgage with Bank of America?

The closing day usually occurs between 4 and 6 weeks after you complete the sales and purchase agreement, however, it could take longer. The closing procedure itself could take many hours. You’ll get the keys to the house after all the necessary paperwork has been signed, your mortgage has been approved, and the closing has been declared successful.

Which FICO score does Bank of America use?

Bank of America discloses with you that you have a FICO® Score of 8 in Online Banking, which is dependent on TransUnion Data used to administer your account.

The Conclusion

The Bank of America Corporate entity, also known as Bank of America, is one of the biggest financial services and banking organizations in the US. If you want to get a secure loan from a big organization then bank of America is a good option for you.

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