U.S. Bank is a major bank and mortgage lender throughout the U.S. You can live anywhere in the country to apply for a home loan, but you can also take advantage of in-office assistance in 25 states with physical branches.
The bank’s prequalification process and new online loan portal allow you to initiate the mortgage process as early as you’d like.
Find out more about what U.S. Bank has to offer for your new mortgage.
Mortgage Application Requirements
Like most other traditional mortgage lenders, the exact requirements depend on the kind of loan you want to get from U.S. Bank. There are no specific guidelines stated, so it may be worth talking to a loan officer directly to get an idea of what you could qualify for.
Credit score is obviously a major factor. For some loans, like FHA, you could qualify with a score as low as 580. You’ll just need to make a bigger down payment and probably pay a higher interest rate as well.
For all mortgages, U.S. Bank looks at your debt-to-income ratio. That tells them how much of a monthly payment you can afford while still making payments on your other debts as well. Lenders usually include your new mortgage (which uses the total monthly payment of principal, interest, taxes, and insurance), plus your other financial commitments like student loan payments, car payments, and credit card minimums.
All of that should be no more than 43% of your total monthly gross income. The exact percentage threshold may vary for U.S. Bank so reach out to a loan officer to see how you can qualify.
Types of Home Loans Available
U.S. Bank offers a wide selection of mortgage products compared to both small traditional banks and online lenders. Here’s what you can find from this lender.
A traditional loan typically requires a higher credit score and comes with a fixed interest rate. You can usually get by with a down payment as low as 5%. If you qualify, you may find savings with your rate.
An adjustable-rate mortgage (or ARM) typically starts with a period of fixed interest. After that, it’s subject to change based on market rates. You’ll notice ARMs typically come with numbers attached to it, which indicates the different rate periods. A 5/1 ARM, for example, has a five-year fixed rate, followed by an adjustment every year.
You can also apply for a jumbo loan if you’re purchasing a house that exceeds the traditional loan limit of $453,100.
U.S. Bank provides a full suite of government-backed loans, including FHA, VA, and USDA mortgages. All of these come with different requirements, but the common denominator is that there are more flexible requirements when it comes to credit and closing costs.
FHA is the most popular option out of the batch, with down payments as low as 3.5%. A VA loan is reserved for active-duty military members and veterans but comes with no down payment required at all. A USDA loan also has no minimum down payment, but the house must be in a designated rural area.
For existing homeowners, you can also apply for a refinance, HELOC, or home equity loan. These allow you to tap into existing equity, whether you want to borrow cash or refinance into new terms for your mortgage.
Construction and Lot Loans
If you live in a state with a U.S. Bank branch, you can apply for a construction or lot loan. You can also look into investment property loans, which is less common among lenders.
Fees and Rates
There is no application fee or origination fee when you apply for a loan through U.S. Bank.
You will have to pay closing costs just as you would with most other lenders, which include things like the appraisal fee, credit report charge, and title attorney fees.
Mortgage rates change daily and are determined by a number of other factors as well, including your loan type and credit score. You can check U.S. Bank’s mortgage rates page for their most current advertised rates and APRs.
They break it down for each loan type so you can get an idea of how rates change based on the kind of loan you hope to qualify for. Then, you can reach out to U.S. Bank to find out what you qualify for and how you can lock in a particular rate.
U.S. Bank’s Mortgage Process
U.S. Bank now allows you to complete the bulk of the mortgage application online, with opportunities to call or meet with a loan officer if you want to.
You can first fill out a pre-approval form to get a letter for your home purchase offer and determine how much of a loan you can expect to qualify for. You simply need to submit your name, address, annual household income, and monthly household debt costs. You don’t have to do this step if you don’t want to, but it can be helpful, especially if you just started house hunting.
Once you’re under contract on your new house, you can complete the actual mortgage application. This involves uploading documents and information they’ll need in underwriting, including:
- Addresses from last two years, including landlord information
- Asset statements from the last couple of months, including bank accounts, savings, and any real estate holdings
- Any new debt not listed on your credit report
After this information is uploaded to the online portal, U.S. Bank reviews your information. You may be asked for more details from your underwriter and you can continually check the status and any requests through the loan portal.
From there, you just have to sign your loan paperwork at closing and get the keys to your new place.
One of U.S. Bank’s strongest points is that you can really customize the user experience based on your own preferences. So if you want to sit down with a loan officer face to face or over the phone, you can opt for that support.
But if you prefer to just communicate online, you have that option as well. You can also jump into a loan application no matter where you are in your house hunt.
The prequalification tool is helpful if you’re just starting to think of what kind of house to buy. Or you can skip that step entirely and immediately begin your official mortgage application.
U.S. Bank combines the support and diverse loan offerings of a traditional bank with the ease and convenience of an online lender. It should definitely be on your list of contenders when you’re ready to compare mortgage rates and terms for your next home purchase.