Citizen Bank’s low-cost mortgage options include the HomeReady program, down payment assistance program, destination home mortgage, FHA loans, conventional 97 loans and veterans home loans. The lender permits the borrowers to put in a 3% down payment for its HomeReady program. However, it doesn’t specify the minimum credit score requirement for its mortgage products.
At a Glance: Citizens Bank Mortgages
- Citizens Bank
- 3% for conventional loans 3.5% for FHA loans Up to 20% for jumbo loans Minimum Down Payment
- Fixed-rate loans, adjustable-rate mortgage loans, FHA loans, veterans home loans, jumbo loans, refinancing and new construction loans.Loan Products Offered
- All 50 U.S states and Washington, D.C.States of Operation
- Yes Online Application
Citizens Bank Mortgage Loan Types, Details and Requirements
Every lender charges different rates and has different loan requirements. MoneyGeek’s Citizens bank mortgage loan review breaks down its fees, loan types, requirements and other important details to help you understand if it could be the best fit for your needs.
Mortgage Types Offered
Citizens Bank offers the following mortgage options:
- Fixed-rate loans
- Adjustable-rate loans
- FHA loans
- HomeReady loans
- Jumbo loans
- Construction loans
- Veterans home loans
- Home Equity Line of Credit (HELOC)
Keep in mind that this lender does not offer USDA loans.
Citizens Bank openly advertises mortgage rates on its website, including the 30-year fixed-rate, 15-year fixed-rate and seven-year/six-month ARM. Since these rates change daily, it’s best to look at what rate they’re offering before applying for a loan. These rates include a 0.125% autopay and paperless discount.
Citizens Bank doesn’t display any fees on its website. Some of the fees that lenders usually charge include origination fees, prepayment penalties, closing costs and more. You’ll need to contact Citizens Bank directly to learn more about their additional fees.
Minimum Borrowing Requirements
Citizens Bank doesn’t specify the minimum credit score requirement for its mortgage products. It’s best to contact a representative to see if you’re eligible for a mortgage loan from this lender.
For conventional loans, the bank allows borrowers to put a minimum down payment of 3%, while the minimum down payment for FHA loans is 3.5% and up to 20% for jumbo loans.
Citizens Bank Mortgage Application Requirements
Citizens Bank will require you to submit a few documents to verify your identity, income and other details. Before applying for a mortgage loan with the Citizens Bank, it’s best to have the following documents and information with you:
Social Security number
Bank statements from the past few months
Recent pay stubs
Is Citizens Bank Right for You?
MoneyGeek explains which type of borrower would and wouldn’t benefit from Citizens Bank’s mortgage products.
Who Citizens Bank Is Perfect for
If you have a checking or savings account with Citizens Bank, getting a mortgage with the company could be very beneficial since you might be eligible for rate discounts. In turn, this may help you save a lot of money in the long run.
The Citizens Bank mortgage application process can be completed online, making it the ideal option for borrowers looking for an easy online experience. It could also be the best option for people who can’t afford to put large down payments because the bank accepts down payments as low as 3%.
Who Should Not Choose Citizens Bank
Since the Citizens bank doesn’t offer USDA loans, people looking to buy a home in an eligible rural area might have to look elsewhere. Also, if you want to have a clear idea of how much your loan would cost you, the Citizens Bank won’t be a good option as it doesn’t display the rates and fees on its website.
Citizens Bank’s mortgage products do not come with a discount for customers who don’t have a checking or saving account with the bank. So, if you aren’t already a customer who has these products, it may not be the best fit for you.
How to Apply for a Citizens Bank Mortgage Loan
Knowing what steps to take when applying for a Citizens Bank mortgage loan can save you from confusion and make the process easier for you.
It’s easy to prequalify with Citizens Bank as it offers online prequalification to borrowers. You need to enter personal information and answer some questions to get the process started.
Fill Out the Application
After prequalification, you can proceed with filling out the online application. At this stage, the Citizens Bank might ask you to submit the following documents and information:
- Social Security Number
- Tax Returns
- W-2 statements
- Bank statements of the past few months.
- Recent pay stubs
- Employment details
- Debt information
Wait for Approval
Once you have applied, Citizens Bank will verify some important details, including your credit score, income details, employment history and more. You’ll typically get approval in a few business days.
Review Loan Agreement
After Citizens Bank approves your loan, they’ll send you a loan agreement. Since the bank doesn’t display its fees on the website, it’s important to review this loan agreement and consider any extra fees they might charge.
Sign Loan Agreement
Once you’ve read the loan agreement and are satisfied with it, you can sign it online. If you're confused about the agreement, you can reach out to Citizens Bank’s representatives.
Citizens Bank will send you a Closing Disclosure to finalize your loan. It’s best to review this document. At this stage, you might have to pay closing fees, which are the fees you pay when you obtain a loan.
You can start making payments once your loan is finalized. Citizens Bank allows you to make online payments for your mortgage loan.
What to Do if You Are Rejected by Citizens Bank
Citizens Bank might not approve your mortgage loan. However, this is not cause for concern if the bank rejects your loan application since a rejection can happen due to many reasons. This includes a low credit score, high debt-to-income ratio, incomplete application or unstable employment.
The best way to proceed in this situation is to ask Citizens Bank’s representatives about the factors that caused your application to be denied. Once they let you know these factors, you can work on improving them and then re-apply. For instance, if the bank rejected your loan due to missing documents, you can attach them and apply again.
While you may want to apply for a loan with a different lender, it won’t be beneficial as you’re less likely to get approval without taking care of the factor that caused the denial in the first place.
You can also reach out to your bank, a financial advisor or a loan officer if you want more information.
Frequently Asked Questions About Mortgages From Citizens Bank
MoneyGeek researched and analyzed the following frequently asked questions about Citizens Bank’s mortgage loans to help you understand its terms and other important details.