Now is an excellent time to buy a home; therefore, many people will be needing a mortgage loan. A mortgage loan is secured by your home. You will repay the loan in monthly payments that will include interest and principle. You can find numerous companies who offer mortgage loans, so you need to find a reliable and trustworthy. Bank of America is one of the largest mortgage lenders in the country.
Types of Mortgages
Bank of America offers several options when it comes to a mortgage. These options include:
- 15-Year Fixed Loan: Your loan will be paid in 15 years, and the rate will not change.
- 30-Year Fixed Loan: Your loan will be paid in 30 years, and the rate will not change.
- Adjustable Rate Loan: Your rate will fluctuate according to the market. The initial fixed rate period before your rate will change includes 5, 7, or 10 years.
- FHA Loan: Insured by the Federal Government, this loan is great for first-time homebuyers. It has more lenient credit requirements, and you do not need to put much money down.
- VA Loan: Insured by the Federal Government, you must be military or retired military to be eligible for this loan. No down payment is required.
- Home Equity: You can use the equity in your home to receive some cash.
- Refinance Loan: You can refinance your home to receive a lower interest rate and a lower monthly payment.
Bank of America Mortgage Requirements
Bank of America requires at least a 620 to qualify for their mortgages. If you are getting an FHA loan, you only need 600. One of the main things he will consider is your ability to repay the loan. You need to have enough income to pay your mortgage and other bills. Usually your debt-to-income ratio needs to be less than 36%. Your payment history and your credit score will be a factor, and your home value will be considered. In some cases, you will be required to pay private mortgage insurance.
Applying for a Bank of America Mortgage
To apply for a Bank of America mortgage, you can apply at a local branch or over the phone. You can also get pre-qualified for the loan online. When you apply for a mortgage, your information will be sent to an underwriter who will review it. You will need to supply the required documents. A home inspection will need to be scheduled, and you will need to present proof of home owner’s insurance. An appraisal will be ordered, and a rate will be locked. After your loan is approved, a closing can be scheduled, and you can sign all of the paperwork needed to complete the loan.
The bottom line is that Bank of America offers excellent mortgage loan experiences for its customers. However, reviews from customers have reported problems with communication and slow processing times. The rates with the bank are competitive, but it is still best to shop around and compare.