Bank of America mortgage financing is one of the top services it is sought for. This bank is considered the biggest loan lender in the country. It offers varied options of loan programs and highly competitive interest rates. It also has commendable customer service. Homeowners are pampered with advanced technology to enhance their mortgage experience. This bank also serves homeowners with step by step guide throughout loan proceedings, especially for first timers.
Steps of Obtaining Mortgage Financing
In order to obtain Bank of America mortgage financing, homeowner can complete a prequalification step first. This optional step is done to determine homeowner’s financial ability in paying mortgage as well as selecting the property value that they can afford. This bank even has online prequalification page at its website to allow prospective borrower easier access. New borrower can also connect directly with a mortgage lending officer by phone at 800-763-4820. This line is accessible from Monday to Friday at 8 a.m. to 10 p.m. ET and on Saturday at 8 a.m. to 6.30 p.m. ET.
Before getting Bank of America mortgage financing, homeowner will have back-and-forth with this bank’s lending officer. Homeowner is required to submit information and necessary documentations. These files will then be forwarded to an underwriter so they can be reviewed.
Here are the criteria of receiving Bank of America mortgage financing.
- Ability to conclude mortgage
Underwriter is going to determine homeowner’s debt-to-income ratio to figure out whether they are able to cover monthly payment comfortably. The standard debt-to-income ratio is 36% or less, but less is definitely preferable.
- Likelihood to conclude mortgage
Underwriter usually uses credit scores and credit history to determine borrower’s reliability when it comes to concluding their loan.
- Property’s value
Underwriter is going to decide whether property’s value is similar or more than the purchasing price after looking at appraisal from professional. Property’s value also assists underwriter in determine whether loan-to-value ratio is still within the guideline. Bank of America mortgage financing cannot be provided when the loan-to-value ratio exceeds 80-95% (in conventional loan).
- Amount and source of down payment
Homeowner who is unable to make 20% down payment is required to pay for lender mortgage insurance. Closing costs paying ability is also going to be determined by underwriter based on homeowner’s income. Bank usually also requires borrower to set aside payment for two months as reserve.
After the files have been reviewed and approved, lending officer will then tailor a specific mortgage loan program based on homeowner condition and financial ability. During this step, homeowner will also learn about current interest rates and approximate payment that they have to make monthly. It is important to study mortgage’s terms of agreements and ask for adjustments as you see fit along the way before getting Bank of America mortgage financing.
The last step is loan closing. It occurs when terms of agreement for mortgage loan has already been settled and the last necessary step is to sign any important document. There are several participants involved in this step, including homeowner, real estate agent, homeowner’s attorney, seller’s attorney, and homeowner’s insurance company. It normally takes 45 days to do loan closing for purchasing purpose, and 60 days for refinancing purpose at this bank. After those long steps, homeowner can finally obtain Bank of America mortgage financing.