One of the four big banks in the United States, Bank of America has emerged as a leading provider of mortgages after its takeover of the erstwhile mortgage giant Countrywide Financial. Today, it maintains its position as a popular home finance source in 35 states of the nation where it has brick and mortar branches. The loan origination services are available online also, which entails you can apply as well as check your application status and get prequalified using the web portal of the bank.
How to Apply for Mortgages at Bank of America
You may apply for a home finance option after you have found your dream home. Alternatively, you can choose to get prequalified first and then set out to find the home the fits your budget. There are three ways to apply for a mortgage loan at Bank of America
- Calling 1.800.763.6798 or 1.866.466.0979 to begin the preapproval process
- Using the web portal of the bank to obtain a custom mortgage rate and fill out the application form
- Visiting a nearby branch or store to meet a loan officer and seek personalized assistance
Besides the filled-in application form, you need to provide the bank with documentation certifying your employment history, creditworthiness and overall financial situation. Note that the same documents are needed for a co-borrower or co-signer. To be specific, you need the following documents.
- W-2s for the last two years
- Pay stubs for the last two consecutive months
- Bank statements for the last two months
- Tax returns
- The latest profit/loss statement for self-employed applicants
- A copy of the signed Purchase and Sales Agreement
Depending on your typical financial situation, you may be asked to provide some other documents as well. Once you have submitted the completed application form along with all the necessary documents, you can check online for the application status and whether you are approved or turned down. In case of approval, you might want to lock-in the lowest interest rate that the bank has to offer. You can do so at a fee to protect yourself against rising interest rates.
What an Underwriter sees to Approve your Loan Application
Your loan officer at Bank of America will forward your application and the supporting documentation to an underwriter, who is responsible for a review of your application and to determine whether or not you qualify for the loan. The following are some of the criteria upon which this decision is based.
- Do you have enough income and financial resources to repay the loan?
- Are you in the habit of making payments on time?
- Does the value of your home justify the purchase price?
- Is your loan-to-value ratio is within permitted limit?
- Do you have enough cash reserves to make down payment, pay for the closing costs and cover mortgage payments in case of emergencies.
Note that your credit history plays an important role in determining your eligibility for the Bank of America mortgage loan, which comes in a variety of options, including 30 year fixed, ARM, 10 year fixed, FHA and jumbo loans. Call Bank of America mortgage customer service to know more about its home finance products and services.
