TD Bank Mortgage Review 2020

About TD Bank

TD Bank, which stands for Toronto-Dominion Bank, has seen many name changes, mergers and acquisitions in its long 160-plus year history. It originally opened its doors in 1852 as the Portland Savings Bank in Portland, Maine. After a series of mergers and acquisitions, the present-day TD Bank is headquartered in Cherry Hill, N.J.

The company, which serves more than 26 million customers worldwide, bills itself as “America’s Most Convenient Bank” for offering banking services at its branches seven days a week, 361 days a year. As of April 2020, TD Bank held nearly $396 billion in total U.S. assets, however, its latest annual mortgage volume was not listed on its website. The company has more than 27,000 employees in over 1,200 retail locations in the U.S.


Working with TD Bank

TD Bank operates retail branches that offer mortgages in the District of Columbia and the following 15 states:

  • Connecticut
  • Delaware
  • Florida
  • Maine
  • Maryland
  • Massachusetts
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Vermont
  • Virginia

TD Bank mortgage borrowing requirements

TD Bank offers home loans backed by the Federal Housing Administration (FHA), which typically allows for credit scores as low as 500 with a 10% down payment. TD Bank makes mortgages on the following types of properties:

  • Primary residences
  • Single-family homes
  • Multifamily homes
  • Manufactured homes
  • Condominiums
  • Co-ops (in certain markets)
  • Planned unit developments (PUDs)

TD Bank mortgage products

Consumers have a wide variety of home loan programs to choose from at TD Bank, such as:

Fixed-rate mortgages. Choose from a 30- or 15-year fixed rate on conventional loans.

Adjustable-rate mortgages (ARMs). ARMs offered through TD Bank allow for a low payment at the beginning of the loan with the ability to switch to a fixed rate.

Low down payment loans. The Fannie Mae HomeReady® program is offered with a 3% down payment requirement for a single-family residence or a two- to four-unit property. Although the Freddie Mac Home Possible® program is not available, TD Bank offers its own proprietary low down payment mortgage, which is covered later.

FHA loans. TD Bank offers 30-year, fixed-rate FHA loans.

VA loans. TD Bank issues loans backed by the U.S. Department of Veterans Affairs (VA) to eligible military borrowers.

Home equity loans and home equity lines of credit (HELOCs). Both fixed-rate home equity loans and variable-rate HELOCs are offered. TD personal checking account customers may get a 0.25% rate discount on a HELOC.

TD Bank special mortgage programs

Construction loans. Borrowers can finance construction costs and the purchase price of land with a TD Bank construction loan. The loan automatically converts to a fixed-rate mortgage after the 12-month construction period ends. That means you need to submit only one application and have one closing to finance both the construction and loan costs.

Medical professional loans. Medical professionals may be eligible to finance a home with more qualifying flexibility than a standard mortgage. The loans don’t require private mortgage insurance (PMI) and you may be able to put no money down or as little as 5% down, depending on the loan amount.

To be eligible for medical professional loans, you must be:

  • A licensed medical or dental resident or fellow with a minimum of two years’ completed residency.
  • A practicing physician (MD, DO, DPM), dentist (DDS, DMD) or oral surgeon less than 10 years out of residency.
  • A self-employed borrower with at least two years of work history.

TD Right Step Mortgage. Qualified homebuyers can put as little as 3% down for a 30-year fixed mortgage without paying PMI. Homebuyer education is required.


The mortgage application process

How to apply. Borrowers can apply online, by phone with a mortgage loan officer or in-person at a TD Bank branch. TD Bank’s all-in-one digital mortgage center allows customers to track the status of their application and upload financial documents online.

Disclosure process. Customers receive a loan estimate within three business days of submitting an application.

Submitting loan for approval. A conditional decision is made within 24 hours of submitting an application. A conditional approval letter is provided if the loan is approved.

Final approval. All paperwork is collected and an appraisal is ordered to verify the home’s value. Title work is reviewed to confirm ownership can be legally transferred.

Closing. Three days prior to closing, you’ll receive a closing disclosure that details the final terms of the loan and your closing costs. A closing agent will schedule the closing time and date and provide the exact amount needed for closing.

Servicing. Current TD Bank mortgage customers can make payments online, or call (888) 751-9000 to discuss concerns about their home loan.

Communication during the process

The mortgage lending process is laid out in detail on the website with milestones that a borrower can expect along the way. Borrowers have the option to communicate online, over the phone or in-person at a TD Bank branch.


Pros and cons of a TD Bank mortgage

Pros
  • Informative website. The website features educational mortgage articles and a variety of different mortgage calculators.
  • Proprietary first-time homebuyer program. A special first-time homebuyer program with no PMI and a low down payment option can help ease the transition into homeownership.
  • Special loan programs are available. A competitive one-time close construction loan program and no-down-payment loan for medical professionals are available, expanding homeownership opportunities to more potential buyers.
Cons
  • No Freddie Mac programs. TD Bank does not offer the Freddie Mac Home Possible® loan.
  • Limited number of branch locations. Borrowers in most parts of the country won’t have the convenient option of in-person support.
  • Minimum mortgage requirements are not online. The TD Bank website does not have a list of the borrowing requirements for a mortgage, such as the minimum credit scores or maximum debt-to-income ratio.

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.