Ally Bank Mortgage Review: Fast Pre-Approval And No Lender Fees For Borrowers

In recent years, the number of online banks that don't have physical locations has increased, and Ally Bank has benefited from this trend. This is because they can pass on the cost savings they receive from not having physical locations to their consumers.

For people in the market to buy a home, Ally Bank has several mortgage choices in addition to its Online High-Yield Savings Account, one of its most popular online products. The final step in purchasing a property, signing the closing paperwork, must be done in person per the lender's instructions, although the rest of the process can be done remotely.

Pick investigated the mortgage offerings from Ally Bank, paying particular attention to things like required down payments, available loan terms, and other advantages.

APR

Getting pre-qualified and submitting a home loan application to Ally Bank is the best approach to determine the APR you will be offered. Mortgage interest rates move around quite a bit, but the rate you're offered will be determined chiefly by your location, credit score, and financial history.

Check out the websites of potential lenders to get a sense of their interest rates, but remember that they will vary based on factors, including your region and credit history. You'll need to give specifics so that a rate can be calculated for you.

Presenting Loans

Ally Bank is a conventional and jumbo loan provider. However, they do not offer government-backed or guaranteed loans like those offered by the Veterans Administration, the United States Department of Agriculture, or the Federal Housing Administration.

Ally Bank participates in the Fannie Mae HomeReady mortgage program, which allows first-time and repeats homebuyers with low to moderate incomes to put down as little as three percent of the purchase price.

A minimum of one borrower is required to complete a homeowner education course. Applicants must have a debt-to-income ratio of no more than 50% and an income at or below 80% of the area's median income.

Rates of Minimum Deposits

The standard down payment requirement for a conventional loan is 5%. Like most other mortgage lenders, Ally Bank mandates a minimum down payment of 10% on jumbo loans. Just remember that closing expenses on a jumbo loan might amount to 2–5 percent of the total loan amount. Those who qualify for the HomeReady mortgage program need a 3% down payment to purchase a property.

Assistance To Customers

Homebuyers with queries or concerns can contact Ally Bank's home team professionals for assistance. Applicants can contact their assigned specialists through phone, email, or text for one-on-one assistance with the online application and file management processes.

Perks

Lender costs, which can include application fees, origination fees, processing fees, and underwriting fees, are frequent throughout the mortgage application process and can add up to a large sum. Ally Bank does not charge any of these costs, but you should still be prepared to pay for a title search, insurance, and an appraisal.

Ally Bank also brags about how fast its pre-approval process is; the lender claims it may be completed online in as little as three minutes. Moreover, which will put you ahead of other homebuyers who still need to do so.

Product Terms, Fees, and Conditions

Ally Home does not charge any lender costs associated with the loan application, processing, underwriting, or origination. Appraisal costs, title search costs, title insurance premiums, recording costs, escrow deposits, interest prepayments, and discount points are all extras that borrowers might choose to pay for.

Some of Ally's mortgage loans demand little more than a 3% down payment, but others, like their jumbo loans, need a 20% down payment or more.

Is This a Trustworthy Lender?

Ally Bank has a B+ rating on WalletHub yet a C+ rating from the BBB. In 2021, 24 complaints were filed against Ally Bank with the Consumer Financial Protection Bureau, all about mortgages. The most common mortgage-related complaints dealt with the initial mortgage application procedure, mortgage refinancing, and payment issues. All complaints were addressed promptly and resolved thoroughly.

Bottom Line

At Ally Bank, you may get pre-approved for a mortgage in as little as three minutes, and you can complete most of the mortgage process online; the only time you'll need to meet in person is to sign the final paperwork. Homebuyers can save money with Ally since the company eliminates some of the typical lending costs.

Those looking for other lending choices, may want to go elsewhere, as this lender only provides conventional loans, jumbo loans, and the HomeReady mortgage program.