U.S. Bank Mortgage Review

About U.S. Bank

U.S. Bank

U.S. Bancorp, with more than 70,000 employees and $495 billion in assets as of December 31, 2019, is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. The Minneapolis-based bank blends its relationship teams, branches and ATM network with mobile and online tools that allow customers to bank how, when, and where they prefer. U.S. Bank is committed to serving its millions of retail, business, wealth management, payment, commercial and corporate, and investment services customers across the country and around the world as a trusted financial partner, a commitment recognized by the Ethisphere Institute naming the bank one of the 2020 World’s Most Ethical Companies®. Visit U.S. Bank at usbank.com or follow on social media to stay up to date with company news

review breakdown

Recommended
92%
Interest Rates
Fees & Closing Cost
Customer Service
Responsiveness

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What is U.S. Bank?

Founded in 1863, U.S. Bank was once known as First National Bank of Cincinnati. Following a formal name change and a series of mergers, the company relocated its headquarters to Minnesota. Today, U.S. Bank, which is owned by U.S. Bancorp, is the fifth-largest bank in the country. Similar to other large financial institutions, U.S. Bank provides its customers with traditional banking products and services, such as checking and savings accounts, as well as personal loans and mortgage loans.

In 2018, U.S. Bank’s mortgage production volume was $41.4 billion.


Working with U.S. Bank

U.S. Bank has locations primarily in the West and Midwest regions of the United States. To date, the bank serves all 50 states with more than 3,000 branch locations in 25 states that have loan officers available on-site. The website has a search tool available for people to locate a branch and loan officers. If a loan officer is not local, or it is more convenient, customers can call mortgage customer service or send an email if they want to ask questions or begin the homebuying process.

With U.S. Bank’s mortgage product offerings, homebuyers have their choice between government-insured and conventional loans. Depending on what type of loan you choose, the credit score requirements will differ. For example, a buyer interested in an FHA loan can be accepted with a score of 580 or lower, while there is generally no minimum credit score requirement for a VA loan. In an interview, U.S. Bank representatives did not specify whether the bank sets its own minimum credit requirements for government-backed loans. When reviewing rates on the U.S. Bank website, many of the examples point out that borrowers can access lower interest rates for conventional loans if they have a credit score of at least 740. Regardless of the loan type, these credit requirements, along with additional loan-eligibility criteria, such as income, will be reviewed by the underwriter before the loan is approved.


U.S. Bank mortgage products

Purchase

 

Refinance

 

Home equity

 

U.S. Bank special mortgage programs

  • Smart refinance: A smart refinance is a loan that allows current homeowners with a mortgage to get a new mortgage with a lower interest rate, different term and no closing costs. This option is not available for homeowners with a VA or FHA loan.

The mortgage application process

How to apply: Prior to filling out an application, you can visit the U.S. Bank website to complete an optional pre-qualification and/or preapproval, which can return an instant decision. By providing your name, address, estimated annual household income, estimated monthly household debt expenses, authorization for U.S. Bank to pull your credit (which will appear as a soft pull) and credit card information to cover the payment for the credit report, you can receive a loan estimate and find out just how much you may be able to borrow and what your mortgage rate will be. The mortgage application can then be completed via phone, in person at your local branch or online by visiting the U.S. Bank Loan Portal and creating an account.

Disclosure process: Once you have created your account and filled out the application, U.S. Bank will need to collect documents to verify the information you provided on the application. You can electronically upload the required documents through the U.S. Bank Loan Portal. The required documents include pay stubs dating back 30 days, W-2s dating back two years and bank statements dating back two months.

Submission for approval: Upon completion of your application and uploading of your documents, you can submit everything to the underwriting department. Submitting this information can get you preapproved for a home loan, but it will require a review of documents and information you have provided so far. U.S. Bank will send you what is called an intent-to-proceed notice and a good faith estimate of settlement costs. If you plan to continue with the loan application process, the intent to proceed will need to be signed and submitted to U.S. Bank online. Payment for your appraisal and application fee, if required, will then be collected. If your mortgage rate has been locked in, your loan officer will confirm this.

Final approval: You will have 90 days to find a home before your preapproval is no longer valid. When you do find a home, it will need to be appraised before you can officially be approved for your mortgage loan. The appraisal will estimate the value of the home and compare it to the loan amount to ensure it is correct. If necessary, additional documents, which can also be submitted via the online portal, may be requested before the underwriter can make a decision.

Closing: Approved homebuyers will need to attend a closing meeting on the agreed-upon date at a time and location that has been discussed with the seller before they can officially become homeowners. This meeting will include the buyer, the seller, their agents and the closing agent, who will be an attorney or someone representing the title company. The buyer will be asked to review and sign documents and pay closing costs, which have been outlined in both the loan estimate and closing disclosure received prior to close. Once everything is signed and closing costs are paid, you can get the keys to your new home.


Communication during the process

There will be a lot of communication that will take place during the homebuying process, so borrowers will have a loan officer who can assist them at every step. If there are questions, the loan officer can be reached via phone, email or the online portal. They also have the option to visit their local branch in person.


Pros and cons of a U.S. Bank mortgage

Pros

  • Locations: Although U.S. Bank doesn’t have branches in every state, homebuyers who live near one can stop in to apply for a mortgage loan in person if this is what they prefer.
  • Online portal: U.S. Bank has an online portal customers can use to apply for their mortgage loan, upload any necessary documentation and sign disclosures.
  • Variety of mortgage products: U.S. Bank offers a variety of mortgage products for people who are looking to purchase a home and refinance, so there is likely a product suitable for their needs.

 

Cons

  • Limited branch availability: U.S. Bank doesn’t have branches in every state that it serves.
  • Unclear loan availability: The website states that current loan products are not available in all states, but it does not specify which states do not have access to loans and which products are not available in those states.
  • Limited special mortgage programs: The bank’s limited special mortgage programs may make it difficult for first-time homebuyers and some other applicants to get a approved for a home loan.

 
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.