SunTrust Mortgage is a heavyweight when it comes to online lenders. They offer a plethora of loans at competitive rates, and their website is nothing but top notch. Both new and experienced borrowers find SunTrust a great mortgage lender to work with.
Mortgage Application Requirements
SunTrust requires the following when applying for a home mortgage online:
- 2-3 paystubs
- Tax returns for the past two years
- Bank Statements
- State/ Government Issued ID
- Social Security Number
In addition to the above paperwork, SunTrust recommends borrowers have a clean credit history. Because they service multiple loan types, they don’t list a minimum credit score on their website since each loan would have a different minimum. They do, however, request that borrowers have a history of on-time payments.
SunTrust also prefers to work with customers who have a low debt-to-income ratio. Although they don’t explicitly state what their maximum DTI is, the general rule of thumb with lenders is to not have a mortgage that pushes the DTI over 43%. Also worth noting is that most lenders like to keep mortgage amounts between 28%-35% of a borrower’s monthly gross income.
To calculate DTI, add up all of your monthly payments on credit cards, student loans, car payments, and any other loan you may have. Divide the sum by your monthly gross income, the amount you make before anything is taken out for taxes or insurance.
Multiply by 100 and the number you get is your debt-to-income ratio. At this point, it doesn’t include any mortgage payment you’ll make. Play around with adding a monthly mortgage amount that doesn’t push your DTI over 43% or exceed 35% of your monthly gross.
Types of Home Loans Available
SunTrust has a truly robust suite of mortgages to choose from, including both conventional and government loan products. Here’s each type of home loan you can get through SunTrust.
ARMs offer lower interest rates in the first few years of payments and then change every year thereafter. Currently, SunTrust offers 5/1, 7/1, and 10/1 ARMs. This means that in the beginning borrowers will have more cash on hand after making their payments.
ARMs are great mortgage options for people who have to move around a lot, and who know they’ll be selling within the ARM period. Just know that your original interest rate may increase after the fixed period with this loan option.
Agency Affordable Financing
AAFs are designed for borrowers with low to moderate monthly incomes, or for purchasers aiming to buy in traditionally low-income/ minority driven areas, as well as communities recently impacted by natural disasters. There are limits to the maximum amount of income borrowers can make, so be sure to speak to a loan officer before moving forward.
Agency Plus Financing
APFs are loans for high-cost homes. The U.S. Department of Housing and Urban Development must have designated the home to be in a high-cost area. If so, SunTrust will finance up to $679,650 of the purchase.
APFs can be used for investment properties, second homes, or primary residences, and are available with either fixed or adjustable rates.
Whether you are a current or former member of the U.S. military (or your spouse was), you can qualify for a VA loan that will finance 100% of your new home. No downpayment is needed, and this loan can be used for a 1-4 unit primary residence property.
Doctor Loan Program
If you are a physician, dentist, licensed resident, intern, or a fellow in an MD, DO, or DPM program, you can qualify for 100% financing. You don’t have to worry about monthly mortgage insurance payments and you can choose from either fixed or adjustable-rate mortgages.
If you are unable to make a large down payment (meaning 20% or more), a standard FHA loan is for you. For this type of loan SunTrust only requires a 580 credit score, and a 3.5% down payment.
Fixed monthly payments for the life of the loan. Never worry about rising interest rates or budgeting as your monthly payments will always be the same.
For borrowers who need larger loan amounts, SunTrust’s Jumbo Financing option allows borrowers to purchase expensive properties at competitive interest rates. Sellers are able to contribute up to 6%, and won’t pay any fees for paying off the loan early.
USDA Rural Development Loans
The U.S. Department of Agriculture and Rural Development offers 100% financing for homes in select rural areas with no down payment required.
Rates and Fees
SunTrust does not currently charge a loan origination fee or any other type of fee to cover the costs associated with processing your loan.
Currently, for a standard credit score, rates vary from 3.99 to 4.9%. Of course, both the loan amount and your personal credit score will affect what rate is received when you close on a house.
Suntrust Mortgage Process
After all of the required paperwork has been submitted, SunTrust then verifies with third parties that the information entered was correct. Things like employment history, social security, income, past taxes are all reviewed. Also, during this time your credit report is analyzed.
While you’re waiting, don’t quit your job, buy a new car, apply for a new credit card or close a current one. Any changes that affect your credit score or employment can affect your loan approval.
The loan process typically takes between 30 and 60 days. Of course, it can be faster or slower. The amount of time it takes to process is usually contingent on the information you submit, as some things may need to be clarified or more information may be needed.
The property appraisal can also affect the closing time frame. If the purchase price is more than the appraisal, you and the seller may need to renegotiate a new purchase price. Sometimes this can work to the buyer’s benefit, and sometimes it can cancel the purchase altogether.
Borrowers can go through the entire loan process online and have a large variety of loan options to choose from. Customer service is top notch and can be reached via phone, online chat, email, or select physical locations nationwide.
SunTrust is a top notch mortgage company that offers high-level customer service and a streamlined application process available in both Spanish and English. Their rates are either on par or exceed that of their competitors, and their website is exceptionally intuitive.