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Bank of America Mortgage Review 2023

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At a glance

Bank of America

Editor's take

 Bank of America was the nation’s fifth-largest mortgage lender by dollar volume in 2022, originating $54 billion in home loans. 

Bankrate Score
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4.6
Rating: 4.6 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; refinancing; HELOC

Credit Good

Min. credit score required

620 for conventional loans, 680 for jumbo loans

Location

Nationwide availability

Available in all states

Dollar Coin

Min. down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans

At a glance

Bank of America

4.6

Rating: 4.6 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; refinancing; HELOC

Location

Nationwide Availability

Available in all states

Credit Good

Min. credit score required

620 for conventional loans, 680 for jumbo loans

Bank of America overview

Bank of America is the second-largest bank in the U.S. Its home loan products include mortgages, refinancing and home equity lines of credit (HELOCs), offering both preapprovals and prequalifications, with “rapid preapproval” available to online applicants. The bank’s Preferred Rewards program offers a $200 discount on mortgage fees. To qualify, you need to have at least $20,000 on deposit with the bank. As an institution, Bank of America is 240 years old and offers checking and savings accounts, auto loans, credit cards, mortgages and investment products. The bank also provides loans to businesses through its corporate banking division, conducts investment banking and offers insurance and asset management. Headquartered in Charlotte, North Carolina, it has 3,900 branches.

Pros and cons of Bank of America

Pros
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    Provides instant quotes online, complete with monthly payment estimates

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    Can prequalify and apply for a loan online as well as submit documents digitally

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    Preferred banking customers might be eligible for fee discounts

Cons
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    Limited transparency around fees

Our Editor’s Take on Bank of America

 Bank of America was the nation’s fifth-largest mortgage lender by dollar volume in 2022, originating $54 billion in home loans. 

How Bankrate scored Bank of America

To determine Bank of America’s Bankrate Score, Bankrate’s editorial team rated it and other lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. (Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews.) We derived its overall score by considering three basic factors:

  • Affordability: Bank of America shares current mortgage offers upfront online, so you won’t need to provide contact info or get in touch in order to make some general comparisons. The bank’s rates are competitive against Bankrate’s averages, but you’ll also pay some fees you might be able to avoid if working with another lender.
  • Availability: Bank of America’s mortgages are available to borrowers nationwide.
  • Borrower experience: Bank of America’s extensive footprint translates to a relatively standardized lending process, regardless of which branch you visit or loan officer you work with.

Affordability: 5/5

Affordability differs from lender to lender, so comparing costs is key. Bank of America displays mortgage rates on its website, updating them daily. It is less forthcoming regarding fees, however, which add to your closing costs. To learn these details, you’ll need to consult with a loan officer to get a loan estimate.

Availability: 4/5

This factor can make the overall mortgage application process smoother or more challenging. Bank of America provides conventional, FHA and VA loans; it doesn’t offer USDA loans, which are for borrowers in rural areas within certain income ranges. In addition, the bank offers jumbo loans, which are necessary for buyers purchasing in higher-priced markets. For a conventional loan, you’ll need a minimum credit score of 620, and might be able to get away with as little as 3 percent or 5 percent down, depending on loan program. In 2022, the bank introduced a special no-down payment mortgage for borrowers in Black and Latino communities. (The bank determines eligibility for this program based on income and location, not ethnicity or race.) For homeowners, Bank of America can also help with refinancing or tapping home equity for cash.

Borrower experience: 4.7/5

Know what to expect when you work with a specific lender. Bank of America is the second-largest bank in the U.S., though when it comes to mortgages, it doesn’t top some of the other big banks in terms of loan volume. The bank is accredited by the Better Business Bureau with an A+ rating; however, on Trustpilot, it’s rated 1.4 out of five stars, but many of the reviews are not mortgage-related. In 2022, J.D. Power ranked the bank above average for customer satisfaction in mortgage origination. As far as experience, Bank of America offers an online application with both prequalification and preapproval. You’ll find helpful educational tools on the bank’s website, and its app allows applicants and mortgage holders to learn about loan options, get prequalified, apply for and lock in a loan (purchase or refinance), make loan payments (and set up autopay) and a variety of other loan servicing options. The bank also supports e-signature and electronic document services.

How to apply for a mortgage with Bank of America

You can apply for a purchase loan or a refinance in person at one of Bank of America’s many branch locations, through the bank’s website or by calling 866-466-0979. Here are some tips to prepare for the process:

  1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
  2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
  3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Bank of America

Borrowers can view current refinance rates on Bank of America’s website. Although the rates advertised include points, they don’t account for any lender fees. The application process for a refinance with the bank is similar to the process of applying for a purchase loan.

Compare Bank of America to other lenders

Bank of America

Rating: 4.6 stars out of 5
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4.6

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LoanDepot
Rating: 4.4 stars out of 5
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4.4

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Read full review
Rocket Mortgage
Rating: 4.5 stars out of 5
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4.5

Bankrate Score
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Read full review

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; refinancing; HELOC

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity loan; investment property; flex-term

Min. credit score required

620 for conventional loans, 680 for jumbo loans

Min. credit score required

620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 620 for VA loans

Min. credit score required

620 for conventional loans, 680 for jumbo loans, 580 for FHA loans, 580 for VA loans

Down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans

Down payment

3.5% for FHA loans

Down payment

3% for conventional loans; 10%-15% for jumbo loans; 3.5% for FHA; none for VA loans

Nationwide availability

Available in all states

Nationwide availability

Available in all U.S. states

Nationwide availability

All U.S. states