MoneyGeek’s Take
U.S. Bank Mortgage Review
Updated: October 24, 2022
Advertising & Editorial Disclosure
U.S. Bank mortgage loans are available for as little as a 3.5% down payment for FHA loans and 5% for conventional and jumbo loans. Borrowers need a minimum credit score of 620, and the interest rate varies depending on the loan product selected. MoneyGeek’s U.S. Bank mortgage loan review highlights all the information you need to know before submitting your loan application.
At a Glance: U.S. Bank Mortgages
U.S. Bank Mortgage Loan Types, Details and Requirements
Mortgage loan requirements vary depending on the lending company and the specific loan product. Our U.S. Bank mortgage loan review outlines the loan types, rates and fees associated with the lender’s product offerings.
Mortgage Types Offered
- Conventional
- Jumbo
- FHA
- VA
- Investment property
- New construction and lot
- Refinancing
However, U.S. Bank does not provide USDA loans.
Mortgage Rates
U.S. Bank determines its loan rates depending on various factors, including the purpose of the mortgage and whether the loan has a fixed or adjustable rate. Other considerations include the monthly payment rate, credit score, down payment and monthly payment amount. That’s why rates may vary across borrowers.
Additional Fees
Although it is not clear how much U.S. Bank charges for origination, underwriting, processing or application fees, you may need to pay various other costs, as follows:
- Prepayment penalty fee: For qualified mortgage loans, U.S. Bank may charge 1% of the amount as a prepayment penalty to a maximum of $500.
- Loan modification fee: This is applicable to adjustable-rate mortgage (ARM) loans converted to fixed-rate loans. The fee amount varies depending on what is outlined in the original mortgage note.
- Check by phone fee: The lender charges this fee when borrowers make payment by telephone, through a loan officer or in the company’s self-service interactive voice response system. The amount varies from $0–$11.
- Late payment fee: If you do not make your payment within the time specified in your loan agreement, you will get fined depending on the percentage of the overdue amount. The rates vary from state to state.
Minimum Borrowing Requirements
Most mortgage products from U.S. Bank need a minimum credit score of 620. Conventional loans are generally limited to $647,200 per home, with a down payment of at least 5% and a minimum APR of 4.50%. However, individuals who live in a high-cost area may receive up to $970,800 as a mortgage.
Jumbo loans offer higher purchase limits, although customers need a debt-to-income ratio that’s less than 45% to qualify and the property cost supported by an appraisal. These loans feature an APR of at least 5.07%, and they require a credit score of at least 740.
FHA loans allow a down payment of 3.5% and may be ideal for customers with lower credit scores who need an option with lower down payments.
U.S. Bank Mortgage Application Requirements
To initiate the mortgage application process at U.S. Bank, borrowers should have several documents. The actual documents may vary depending on each unique situation but will typically include:
Identification and Social Security number
Proof of income
Pay stubs for the last month
Federal tax returns
Existing debt information
I-9 or W-2 forms for the past two years
Recent bank statements
Real estate property information
Customers will need to respond to simple application questions and upload the documents as requested.
Is U.S. Bank Right for You?
Securing the best mortgage loan depends on your unique circumstance and the terms of the lending company. MoneyGeek’s U.S. Bank mortgage review can help you determine whether the lender suits your needs.
Who U.S. Bank Is Perfect For
According to MoneyGeek’s research, U.S. Bank provides excellent mortgage loans to a wide array of borrowers, especially those with an established credit history.
Customers can determine whether they prequalify for a select mortgage product within five minutes and have their application completed as soon as their credit rating is verified.
The bank is also ideal for clients who need increased purchase limits and may wish to refinance their loans in the future. If you are looking for a low-cost down payment, you may also consider U.S. Bank, with rates as low as 3.5% on some of its mortgage loans.
Who Should Not Choose U.S. Bank
Borrowers who need USDA loans may need to get alternative lenders to U.S. Bank. Those with a credit score that’s lower than 620 may also need to consider other companies unless they are only interested in FHA and VA mortgage loans. Furthermore, if you need a jumbo mortgage, you’ll need a credit score of at least 740 to qualify with U.S. Bank.
You may also not find U.S. Bank appealing if you need a lender that doesn’t charge prepayment or late fees.
How to Apply for a U.S. Bank Mortgage Loan
The application process for a mortgage loan varies across lenders. Here is an outline of the steps you will need to complete while applying for a loan from U.S. Bank.
Prequalify
You can find out if you qualify to borrow from the bank through a simple prequalification process that may not affect your credit report. You will need to provide some basic financial information, including proof of income, existing debt and assets, to estimate how large of a loan you can afford to repay.
Submit an Application Form
Once you confirm the loan amount, you will need to put together various documents as instructed by the lender. Most likely, you will need:
- ID and Social Security number
- Recent pay stubs
- W-2 or I-9 forms for the past two years
- Proof of income
- Federal tax returns
- Recent bank statements
- Information on existing debts
- Asset information
Once you sign up in the U.S. Bank loan portal, you will respond to a few simple questions and upload the above documents to complete your application.
Wait for Approval
The bank will review your documents and may have questions or need additional information from you. Be sure to respond promptly to keep your application moving. The estimated closing costs will be provided in your initial loan estimate within three days of your application.
Review Loan Agreement
Once your loan gets approved, you will receive a closing disclosure from U.S. Bank indicating the terms of the agreement and your final amount. Take time to review the details of the closing documents and raise any questions or concerns with the bank.
Sign Loan Agreement
If you are happy with the terms of the agreement, you can meet with your closing agent to sign the mortgage documents. Additionally, you will need to make your down payment and take copies of your photo ID and proof of homeowners insurance.
Make Payments
The last stage of the process entails making payments for your loan. You can do this through the bank’s online portal.
What to Do if You Are Rejected by U.S. Bank
Completing the prequalification process does not guarantee that your loan will get approved. The lender may cancel your application for various reasons, including a low credit score, lack of proof of income or submitting incomplete application documents.
Should this happen, MoneyGeek recommends that you first establish the cause of rejection. Find out if it’s possible to revise your application and resubmit it to U.S. Bank or another lender. However, you should never apply for another loan until you are sure what caused the previous application to be declined.
You may talk to your loan officer, a financial advisor or any representative from the bank to obtain additional resources about your preferred mortgage loan.
You may also consider alternative options that suit your needs, especially if your application failed to go through due to credit score or income issues.
Frequently Asked Questions About Mortgages From U.S. Bank
The best mortgage loan depends on the borrower’s needs and the lender’s requirements. MoneyGeek’s U.S. Bank mortgage review can help you determine if this bank is the best option for your unique situation.
U.S. Bank provides loans for almost every mortgage need. Specifically, customers can apply for a loan to fund single-family homes, luxury homes, investment properties, new homes and purchasing lots for future homes.
Individuals with a credit score of at least 620 can apply for a mortgage loan from U.S. Bank, although the score may be lower for some loan products, such as FHA and VA loans. If you need a jumbo mortgage, you’ll need a credit score of at least 740.
U.S. Bank provides conventional, jumbo, investment property, new construction, FHA, VA and refinancing loans to its customers.
The standard limit for conventional mortgage loans is $647,200, although you may obtain up to $970,800 if you live in a high-cost area. Jumbo loans exceed these limits.
The amount varies depending on the type of mortgage loan, with as little as 3% and as much as 5% down required.
Yes, if you have less than a 20% down payment, you’ll need private mortgage insurance. However, customers can request to get PMI removed from their mortgage by contacting 800-365-7772 and having a specialist review their mortgage account.
U.S. Bank conducts an appraisal of the property to determine if its value aligns with the purchase price for jumbo loans. The bank wants to be sure that the requested loan amount does not exceed the property’s value, and the process can last from a few days to several weeks.
sources
- U.S. Bank. "Applicable Mortgage Servicing Fees." Accessed May 30, 2022.
- U.S. Bank. "Find a U.S. Bank Branch." Accessed May 30, 2022.
- U.S. Bank. "Home-buying and mortgage process." Accessed May 30, 2022.
- U.S. Bank. "How can I request to get private mortgage insurance (PMI) removed from my mortgage?." Accessed May 31, 2022.
- U.S. Bank. "Mortgage Loans." Accessed May 30, 2022.
- U.S. Bank. "Compare mortgage options." Accessed May 30, 2022.
- U.S. Bank. "Mortgage refinance options." Accessed May 30, 2022.
- U.S. Bank. "Mortgage underwriting process." Accessed May 31, 2022.