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U.S. Bank Mortgage Review
U.S. Bank at a glance
|Lender||Min-Max Loan Amount||APR Range||Terms||Key Benefit|
|U.S. Bank||N/A||3.116% – 3.57%*||5 – 30 years||Closing cost discounts available|
What we like about it
U.S. Bank offers an extensive variety of home loans for buyers to take advantage of. The lender offers conventional, adjustable rate, FHA, VA, jumbo, investment and construction loans. U.S. Bank also offers incentives to help with closing costs.
Borrowers may qualify for up to $1,000 in savings by taking 0.25% of the loan amount and deducting it from the closing costs. Borrowers may also qualify for a fee waiver on platinum and gold checking account fees with U.S. Bank after taking out a mortgage with this lender.
Things to consider
While the rates on U.S. Bank home mortgages listed are on par with the rest of the industry, it’s important to be aware these are the starting rates. These APRs assume a loan for a single family residence and a credit score of at least 740. You can still get a home loan through U.S. Bank and a competitive rate with a credit score below this threshold, but it most likely won’t be quite as good.
Homebuyers who are looking for an adjustable-rate mortgage may be able to find better rates elsewhere. Typically, the opening rate on ARMs during the fixed interest period on is better than the market rate on traditional loans, but the rates are better on its 10-, 15- or 20-year fixed home loans than the 5 – 10 year ARM options with U.S. Bank.
What you need to know
Loans from U.S. Bank are available with APRs starting at 3.116%. Actual rates will depend on your state, credit profile and loan details. Term lengths on loans span from 5 to 30 years. Adjustable-rate mortgages are available as 10-year and 5-year options. Potential borrowers who are looking to apply for a loan through the bank have several options, including a streamlined online application, phone application or in-person by heading into one of the bank’s many branch locations across the country.
Fees and penalties
Fees charged on a U.S. bank mortgage loan are determined on a case-by-case basis. The example loans listed on the company’s website include closing costs and origination fees. Expect to pay closing costs somewhere in the area of 2% to 5%, but there are certain rebates or fee waivers available in some cases that will lower the cost.
How to apply for a U.S. Bank mortgage loan
1. Request a prequalification quote.
Use the lender’s website to request a prequalification quote. This will give you a general idea of what rates to expect. It’s not full approval, but can give you an idea if following through with the application process is a good idea or not. For this, you will need your name, current address, estimated household income and estimated household debts.
2. Collect the necessary documents for your application
Once you’ve got your prequalification, it’s time to collect the necessary documents for your U.S. Bank home loan application. In addition to the documents needed for prequalification, you will need paycheck stubs from the last 30 days, W2s or I9s for the last two years, bank account and asset statements and any real estate property information.
3. Decide which medium you want to use to apply.
U.S. Bank allows you to apply online, over the phone or at a branch location. Choose the option that fits your needs best. The lender does boast a fast and streamlined online application process.
4. Complete the application process.
Once you have decided how you want to apply and collected your documents, complete the process. Make sure to quickly comply with any requests from U.S. Bank for additional documents or information.
Alternatives to U.S. Bank mortgages
- Online lender Rocket Mortgage offers loans fully online under the parent company Quicken Loans. The company has some of the highest customer service ratings with the top rating in the industry from J.D. Power. Rocket Mortgage is willing to work with borrowers with credit scores as low as 580 as long as they are able to meet the list of additional criteria for eligibility. U.S. Bank does not list the minimum credit score required for approval, so you will need to apply or speak with a loan officer to see if you qualify. Rocket Mortgage’s products are available online 24/7, which will help customers who want a fast approval or to lock in a lower rate. For people looking for a completely digital experience, most loans can be handled online without ever talking to a live agent.
- Sofi offers mortgage loans up to $3 million. While U.S. Bank offers conventional mortgage loans with as little as 5% down, SoFi does require a minimum of a 10% down payment. Additionally, mortgage options with SoFi are limited to 15-year fixed, 30-year fixed and 7/1 ARM. If you do elect to borrow through SoFi, make sure to take advantage of the $500 mortgage processing fee credit available to SoFi members.
- While Chase has a limited number of mortgage options available, the rates on those products are attractive. As the largest bank by assets in the country, borrowers can have some confidence in the reliability of their lender. In addition, Chase offers extensive educational and learning resources for first-time homebuyers or people less familiar with the purchase process. If this is your first time buying, these resources can help teach you about topics like how to get a mortgage, prequalification and finding the right home you can afford.