Homebuyers who prefer doing business online can apply for and manage their home loan with Ally Bank. Qua🌞lified borrowers seeking conventional and jumbo fixed- and adjustable-rate mortgages can find an Ally loan to suit their needs. With its online pre-approval, application, and loan tracking processes, Ally holds licenses in every state and Washington, D.C.

Ally’s online tools can help you d🧜etermine the amount of money you can afford to pay for a home and how much you’ll need to spend to make mortgage payments. First-time homebuyers can also take advantage of Ally’s educational resources to learn about the home-buying process, how mortgages work, and how to avoid pitfalls such as foreclosure.

Pros Explained

• Digital pre-approval, application, and loan tracking: In keeping with Ally’s all-digital banking environment, you can request pre-approval and submit your loan application online. Once you’ve applied for a loan, you can track its progress through your Ally online account.
• Conventional conforming and jumbo loan options: Ally’s conventional conforming loans enable qualified borrowers to get a loan with credit scores as low as 620. Buyers in the most expensive housing markets can still get funding through an Ally jumbo loan.
• Licensed in all states: Ally is licensed to make home loans for purchase or refinance in all 50 states. When taking out a home loan, existing Ally customers may qualify for a $500 bonus to apply toward their closing costs.  
• No lender fees: Some lenders charge fees throughout the loan approval process. Loan application, origination, and underwriting fees can add a significant sum of money to your overall costs. But Ally Bank charges no lender home loan fees.

Cons Explained

• Limited loan types: Ally only offers conventional and jumbo home loans. It does not provide construction, FHA, home equity, USDA, or VA loans. Additionally, Ally Bank does not offer balloon or interest-only loan terms. 
• Poor customer satisfaction ratings: Ally Bank did not earn a ranking in J.D. Power’s 2023 Mortgage Origination Satisfaction Study. Among its existing customers, Ally Bank earned a low, 1.4 out of 5 star rating on Trustpilot.
• Digital closing unavailable: Ally does not offer an all-digital closing option. However, it does provide a hybrid closing process, which enables you to sign closing documents online and meet with a notary in person.
• No local offices: While many homebuyers appreciate a loan process in a digital environment, some prefer meeting in person with a loan officer. However, Ally Bank has no local offices.

Types of Mortgage Loans Offered by Ally Bank

Ally Bank offers two types of home mortgages, 澳洲幸运5开奖号码历史查询:fixed-rate and adjustable rate.

• Fixed-rate mortgages: Ally’s fixed-rate mortgages offer 15-, 20-, and 30-year terms. With a fixed-rate mortgage, you’ll pay the same 澳洲幸运5开奖号码历史查询:interest rate throughout the loan's life.
• Adjustable-rate mortgages (ARM): With an Ally Bank ARM, you can choose to lock in your initial interest rate for five, seven, or 10 years. After the term ends, your rate will adjust to market rates every six months. Typically, ARMs offer a low initial interest rate, then go up when they adjust. However, if market rates go down after your initial rate period, you may receive a lower interest rate when it adjusts.

Ally Bank Mortgage Loan Features

• No lender fees: Ally Bank does not charge any fees for applying for a mortgage, loan origination and processing, or underwriting services.
• Verified pre-approvals: Ally’s verified pre-approvals are valid for 90 days.
• One-day mortgage: Qualified applicants can receive mortgage approval within 24 hours of 澳洲幸运5开奖号码历史查询:requesting a rate lock. Ally offers one-day mortgages for 澳洲幸运5开奖号码历史查询:conventional conforming and 🔯jumbo loans.
•  Ally Home Grant: Ally offers up to a $5,000 grant, which you can use for a down payment or to pay closing costs. The program only applies to 澳洲幸运5开奖号码历史查询:low-income borrowers who purchase homes in areas designated as a majority-minority census tract (MMCT) in Charlotte, North Carolina; Detroit; and Philadelphia.
• Home affordability calculator: This online tool can help you determine 澳洲幸运5开奖号码历史查询:how much you can afford to borrow for a home based on your annual household income, credit score, monthly expenses, and property location.
• Mortgage payment calculator: Enter the price of the home you want to buy, your down payment amount, your credit score, and the ZIP code of the home, and Ally’s mortgage payment calculator will provide an estimate of your monthly mortgage payment. Results are based on a 30-year fixed-rate loan.
• Online first-time homebuyer guide: Access this online guide to learn about loan pre-approvals, making an offer on a home, home appraisals, rate locks, the underwriting process, and home closing procedures.

How to Apply for an Ally Bank Mortgage

Typically, Ally’s 澳洲幸运5开奖号码历史查询:home loan process takes four to six weeks from the time you apply to closing. The timeframe can vary depending on the complexity of your purchase and your loan eligibility. These are the basic steps in obtaining an Ally home loan.

Get Pre-Approved

A 澳洲幸运5开奖号码历史查询:basic pre-approval is a written estimate from a lender that estimates the amount of money it will lend you. Since Ally is an all-digital bank, you must submit a pre-approval application online, which should only take a few minutes. The pre-approval application requires you to submit basic information about your assets, debt, income, and Social Security number. When processing your basic pre-approval application, Ally will perform a soft credit check. Once you submit, the Ally system processes your request within minutes.

Make an Offer on a Home

After you find a house you want to buy, you must submit an offer to the seller. This document includes the amount of your offer, the earnest money you plan to offer (typically 1% to 3% of the offer amount), your 澳洲幸运5开奖号码历史查询:down payment amount,🌸 the expiration date of the offer, and your proposed closing date. Also include contingencies. For example, you might make the offer contingent upon getting a loan approval or selling your existing home.

Submit Mortgage Application

Now it’s time to apply for an Ally home loan. You must submit personal documents, typically including bank statements, employment records, proof of income, and tax returns, among other records. Within three days of approving your application, Ally must provide an online loan estimate, which includes your estimated closing costs, insurance and tax costs, interest rate, and monthly payment.

Wait During Underwriting

Next, your home loan a🧜pplication heads to underwriting, which typically takes two to three weeks. During this process, an Ally home loan expert might request additional documents, like a copy of a divorce decree or proof of student loan payments. The underwriter will verify the accuracy of your documentation to determine your eligibility for the loan. During the underwriting process, Ally might set up an appraisal appointment for a home assessment. Throughout the underwriting process, your Ally home loan expe🐭rt should provide you with updates about the loan’s progress.

Get Your Mortgage Approved or Denied

To obtain approval, you’ll need to meet Ally’s loan guidelines. Approval depends on your credit score, debt-to-income ratio, down payment amount, and employment history.

Close

Ally will notify you of the closing location, date, and time and provide you with a disclosure that defines the closing costs and final loan terms. Traditional closings require you to sign all relevant documents at a specified location. Ally also offers a hybrid closing option, which enables you to electronically sign the documents online and have them notarized in person with a notary. Sometimes, you can apply the earnest money you paid when you submitted an offer toward your closing costs.

Ally Bank Rates and Fees

Some mortgage lenders charge borrowers an application fee and fees for origina🍨tion and underwriting. Ally Bank charges no lender fees for home loans.

Online Experience

Ally’s all-digital banking approach enables you to apply at your own pace and track your loan’s progress from the convenience of your computer or🔥 mobile device. The lender’s mortgage landing page updates interest rates daily, which can help you decide the best time to apply for a loan or request a rate lock. Since you’ll pay no lender fees with Ally, you can also get pre-approved and submit a loan application at no cost. 

Whether you’re researching home ownership, actively shopping for a house, or have ♋signed a purchase agreement, Ally’s pre-approval application enables you to request pre-approval based on your timeline. Once you’re pre-approved, you can go back to the Ally website to apply for a loan when you’re ready to buy a ♊home. 

First-time homebuyers can take advantage of Ally’s calculators to help them decide how much they can afford to borrow and how mortgage payments will affect their monthly budget. The lender’s educational resources provide a wealth of knowledge about budgeting to buy a home, state 🍨home-buying 🧔programs, interest rates, refinancing, down payments, and more.

Customer Service

Ally🤪 provides lots of ways for you to speak with a home loan expert, ask questions, and keep track of your loan’s progress. After applying, you can update your communication preferences within your Ally account. You’ll also receive the contact information for your Ally home loan expert.💧

Customer Satisfaction

Ally Bank’s customer satisfaction record does not r꧅ank as high as some other mortgage lenders.

• : Among 223 Ally customers, the bank earned a low 1.4 out of 5 star rating on Trustpilot.
• : Ally Bank did not rank among the best mortgage lenders in J.D. Power’s 2023 U.S. Mortgage Origination Satisfaction Study. Fairway Independent Mortgage Corporation earned the top ranking in the J.D. Power survey, followed by Rocket Mortgage and Citi.
• Regulatory actions: Government regulators, including the Consumer Financial Protection Bureau, Federal Reserve, FDIC, and Office of the Comptroller of Currency, have not imposed any regulatory actions against Ally Bank since 2013. 

Account Management

Ally home mortgage customers can manage their loans online within their Ally account. You can set up autopay t🦂o make month💧ly payments through your checking account and, if you choose to, schedule additional principal payments to reduce the loan amount faster. Ally’s mobile app lets you access your mortgage information, payment history, and statements using your mobile devices. 

Other Banki🏅ng S🍎ervices and Loans Offered by Ally Bank

Besides home loans, Ally Bank also offers:

• Auto loans (for personal vehicle purchases, business automobiles, refinances, and lease buyouts)
• Checking and savings accounts
• Credit cards
• Investment and retirement accounts (ETFs, IRAs, rollover IRAs, margin accounts, options trading, security income program)

Comp𓂃are Ally Bank With Other Mortgage Loan Lenders

The Bottom Line

Ally provides conventional and jumbo home loans with fixed- and adjustable-rate terms. Its online pre-approval and application process makes it a convenient choice for homebuyers comfortable with doing business digitally. Loan applicants📖 can track their loan’s progress digitally, too, through their Ally online account and the bank’s mobile app. While other lenders charge various fees—from a loan application fee to processing and underwriting fees—you won’t pay these expenses with an Ally home loan.

Ally does not provide a wide range of mortgage products. The lender does not offer choices such as construction, FHA, interest-only, or VA loans. Among some of its competitors, Ally Bank’s customer satisfaction history ranks poorly. However, federal regulators have not filed any actions agains⛎t the lender in more than a decade, and in recent years Ally has earned a spot among♊ the best online banks.

Frequently Asked Questions (FAQs)

What Credit Score Do You Need for an Al🦹ly Bank Mort⛄gage?

Typically, Ally requires home loan borrowers to have a 澳洲幸运5开奖号码历史查询:credit score of 620 or higher for a conventional loan. If you have a high credit score, you’re likely to receive ♎𝓡better loan options.

Does Ally Bank Require Collateral?

No. The 澳洲幸运5开奖号码历史查询:home you fi𒐪ꦅnance will secure the loan. If you’re unable to repay the loan, the lender can foreclose on your house. In such cases♊, you could l🍸ose the house and all your equity. You can also use the home as collateral when seeking a home equity loan, refinancing, or taking out a second mortgage.

Is Ally Bank at Risk for Failure?

Currently, Ally Bank does not appear to be at risk of failure. As of July 2024, Fitch gives Ally Bank a BBB- (stable) long-term issuer default rating. 澳洲幸运5开奖号码历史查询:Fitch’s highest long-term issuer default ratiﷺng—AAA—denotes the lowest risk of default. Ally has earned an F3 Fitch short-term issuer default rating. An F1 rating denotes the strongest ability to meet financial commitme💧nts.

Is Better Mortgage Part of Ally Bank? 

Ally Bank formed a partnership with 澳洲幸运5开奖号码历史查询:Better Mortgage in 2018. Additionally, Allyꦏ Ventures—Ally Bank’s investment division—provided Better Mortgage with Series C funding, which increased Ally’s ownership share. Ally harnesses Better’s technology to po💫wer its online home loan origination and funding processes. Better’s technology enables Ally to offer a nearly 100% digital home loan experience.

How We Review Mortgage Lenders

In March 2024, we conducted a consumer survey, collecting 500 responses from current or prospective homebuyers and mortgage borrowers to understand what is most important when selecting a lender. We asked them 41 questions about the home-buying and mortgage-shopping experience and learned what features and services were most import𝓡ant to them. Our team of researchers analyzed the results, a💜nd this information fueled our list of 38 mortgage lenders and 55 criteria for our rubric.

We then collected over 2,000 data points, surveying mortgage lenders and co𒉰llecting data via media contacts, websites, and customer service between May 31 and June 28, 2024. To develop our list of the best mortgage lenders, we weighted 36 of the 55 individual criteria, giving higher weight to those criteria that mean the most to borrowers. The score for each company’s overall star rating is a weighted average of those criteria in the following categories:

• Customer Experience: 48%
• Operational Features: 16% 
• Reputation: 14%
• Loan Types: 11%
• Loan Costs and Requirements: 11%

Read more about our process in our full 澳洲幸运5开奖号码历史查询:mortgage lender methodology.