PNC Mortgage Review


What is PNC?

PNC was born through the merger of two Pennsylvania banks in 1983: Pittsburgh National Corporation and Provident National Corporation. Headquartered in Pittsburgh, the company closed approximately $5.8 billion in loans in 2018, with around $1.4 billion of that coming from residential real estate loans.

The website provides login access to online banking, as well as easy-to-navigate links to  mortgage tools that allow you to check current rates, determine a mortgage payment that fits your budget and locate a loan officer.


Working With PNC

PNC is currently licensed to do business in 20 states and the District of Columbia.

  • Alabama
  • Delaware
  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Kansas
  • Kentucky
  • Maryland
  • Michigan
  • Missouri
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • South Carolina
  • Virginia
  • West Virginia
  • Wisconsin

The application process can be started online, by phone or at a local branch. The website provides a link to help find a local loan officer.


PNC Products

PNC offers a full range of mortgage and refinance loans. It also offers home equity loans and home equity lines of credit, although the company has significantly scaled these loans back, according to its most recent annual reports. For all purchase options, fees typically range between 3% and 5% of the loan amount. It’s important to note PNC does not disclose any minimum credit score requirements; however, in its 2018 annual report, it states that newly originated loans had a weighted-average (an average of all loans in the bank’s portfolio) FICO score of 769.

PNC mortgage products are available on the following types of properties: single-family residences, townhomes and condominiums. Loans on manufactured homes may require a larger down payment, and co-ops may be approved in certain geographical areas. You should speak with a loan officer regarding these two property types prior to applying for a loan to discuss specific requirements.

Purchase

PNC offers five mortgage products for borrowers looking to purchase a home.

Fixed-rate or conventional mortgage

  • Loan terms range between 10 and 30 years.
  • Down payments may be as low as 3% of the purchase price.
  • Single-family loan amounts can be as high as $484,350.
  • Fixed rate for the life of the loan.
  • Mortgages are available for primary and second homes, as well as investment properties.
  • Preapproval is available prior to shopping for a house.

Adjustable-rate mortgage

  • Loan terms include lower payments for the first years of the loan.
  • Rate is set for a predetermined period, after which it will reset with a new (higher or lower) rate.
  • Borrowers may select from one-, three-, five-, seven- or 10-year periods during which the rate remains unchanged, followed by one-year periods during which the rate changes (higher or lower) on an annual basis.
  • Preapproval is available prior to shopping for a house.

Jumbo loans

  • Loan amounts range from $484,350 to $5 million.
  • Loan terms range from 15 to 30 years.
  • Fixed-rate, adjustable-rate and interest-only payment options are available, as are home purchase and cash-out options.
  • For adjustable-rate loans, borrowers may choose from one-, three-, five-, seven- or 10-year periods during which the rate remains unchanged, followed by one-year periods during which the rate changes (higher or lower) on an annual basis.
  • These loans are available for primary or second home purchases.
  • Preapproval is available before shopping for a house.

FHA loans

  • These loans feature more flexible credit requirements — FHA loan requirements require a minimum FICO score of 580 if putting down 3.5%. Borrowers with scores between 500 and 579 may be eligible if making a down payment of 10%.
  • Down payments may be as low as 3.5%.
  • Seller can assist with up to 6% of the purchase price toward closing costs.
  • Fixed- and adjustable-rate options are available.
  • Funds applied to down payment or closing costs can be from a gift.

VA loans

  • VA loans are available for active military, veterans, reservists or National Guard members.
  • Little to no down payment is required.
  • Fixed- and adjustable-rate options are available.
  • Fixed loan terms range between 15 and 30 years.
  • These loans do not require private mortgage insurance; however, a VA funding fee is required.
  • These loans are guaranteed by the U.S. Department of Veterans Affairs.

Refinance

PNC offers six primary options to refinance a mortgage.

Conventional or fixed rate

  • Operates the same as a conventional or fixed-rate mortgage

Adjustable-rate refinance

  • Operates similarly to an adjustable-rate mortgage
  • Homeowners must have a good credit history
  • Available for primary and second homes as well as investment properties

Home Equity Rapid Refinance

  • Fixed rate for life of loan, up to 30 years
  • Possible 0.25% discount off rate when paying by automatic payment from a new or existing PNC checking account
  • No application fee
  • Minimal closing costs, including recording and satisfaction fees, insurance and property search fee (Georgia residents are required to pay a Georgia Residential Mortgage Act Fee)
  • For most applications, an appraisal fee is not required

Jumbo loan refinance

  • Operates similarly to a jumbo loan mortgage
  • Adjustable-rate loans come with periods of five-, seven- and 10-year periods of a fixed rate, followed by a rate change (higher or lower) each year for the remainder of the loan term
  • Available for primary or second home refinances

FHA refinance

  • Fixed or adjustable-rate loans available
  • Can qualify to refinance your existing mortgage for up to 97.75% loan-to-value, or, if eligible for an FHA Streamline Refinance, no loan-to-value maximum is applied, plus an appraisal may not be required
  • Fees typically range between 3% and 5% of the loan amount

VA refinance

  • Operates like a VA mortgage, but 100% financing is available

Home equity

PNC has three products for drawing upon your home equity.

Choice Home Equity Line of Credit

  • Payment options include fixed and adjustable rates, as well as interest-only
  • Flexible draw and repayment terms with either seven- or 10-year draw period, followed by a 30-year repayment period
  • Closing costs include insurance, an annual fee and, for Georgia residents, a Georgia Residential Mortgage Act Fee.
  • No application fee and, for most applications, no appraisal fee
  • Servicing fees include late charge, return payment, stop payment, return credit line check, overlimit and fixed-rate transfer fees that may be applied as necessary.

Home equity loan

  • Fixed rate for loan term, up to 30 years
  • Possible 0.25% discount on interest rate if monthly payments are automatically deducted from a PNC checking account
  • No application fee
  • Closing costs limited to recording and satisfaction fees, insurance and property search fee (certain states only)
  • Georgia residents will also pay a Georgia Residential Mortgage Act Fee
  • Appraisal fee may not be required for most applications

Home Equity Rapid Refinance

  • Fixed rate for life of loan, up to 30 years
  • Possible 0.25% discount off rate when paying by automatic payment from a new or existing PNC checking account
  • No application fee
  • Minimal closing costs, including recording and satisfaction fees, insurance and property search fee (Georgia residents may be required to pay a Georgia Residential Mortgage Act Fee)
  • For most applications, an appraisal fee is not required

The mortgage application process

  • How to apply. Borrowers can start the mortgage application process online or find a local loan officer. If they prefer, borrowers can begin the application process over the phone by calling the bank’s toll-free number.
  • Disclosure process. When applying in person, you will need to bring all required documentation with you to present to the loan officer. When applying online, you can enroll in PNC’s Home Insight Tracker. This digital tool allows users to check the status of their application, verify application details, upload documents, receive real-time emails documenting key milestones and exchange secure messages with the loan officer and lending team.
  • Submitting loan for approval. Once your application and all documentation have been submitted and reviewed by your loan officer, he or she will notify you by phone or email to provide initial approval of your loan. If the loan is not approved, you’ll receive a letter explaining why the loan was denied.
  • Final approval. Once the loan receives final approval, your loan officer will call or email you to let you know.
  • Closing. Closing usually takes place between seven and 10 days after the loan receives final approval. PNC provides your closing date along with your closing disclosure (loan details) three business days prior to closing. At the closing, you’ll need a valid photo ID, a certified check for the closing costs and your homeowner’s insurance policy, plus any other required insurance policies.

 

Communication during the process

Initial contact. If applying online, your preliminary information will be sent to the lending department, and someone will contact you within one to two business days. You also have the option to see a loan officer at a local branch to start the application process. If you prefer to call, PNC has a toll-free number (877-508-3339) you can call to speak with a loan officer.

Loan processing contact. Once you have applied for a home loan, your application is assigned to a loan officer and home-lending team. You will receive their contact information so you can call or email them as needed. Also, when using PNC’s Home Insight Tracker, you can view your home-lending team’s contact information and exchange secure messages with them through this digital tool.

Electronic status notifications. When using PNC’s Home Insight Tracker, you can check the status of your application, verify application details and receive real-time emails noting key milestones of your application. Borrowers can also call the toll-free number for 24-hour automated account information.


Pros and Cons of a PNC mortgage

Pros

  • Website provides easy-to-navigate pages and menus that clearly outline the application process for a home mortgage, refinance, home equity loan or line of credit
  • Provides several digital tools, including PNC Home Insight Planner, which can help you determine a mortgage payment for your budget
  • Offers a variety of products
  • Borrowers may work with a local loan officer and through an online application
  • Dedicated contacts to answer questions about both PNC’s loan programs and the application process
  • Electronic status notifications through the PNC Home Insight Tracker supplement information received from loan officer and home-lending team

 

Cons

  • Limited number of states where PNC is licensed to do business
  • Limited information available on the website

 
Editorial Note: Parts of this article were reviewed by a lender to ensure accuracy prior to publication. The overall conclusions, recommendations and opinions are the author’s alone.

The information in this article is accurate as of the date of publishing.