Ally Bank Review

Ally Bank at a Glance

Loan TypesMortgage loans and mortgage refinancing
Loan FeaturesFixed-rate and adjustable-rate mortgages
Repayment Terms10- to 30-year fixed, 5- to 10-year adjustable
Down PaymentAs low as 3%
Credit Score620
Best ForUnbeatable low rates with Price Match Guarantee*

Visit Ally Bank

Overview

Ally Bank is an online bank owned by Ally Financial that offers mortgage loans, mortgage refinancing, and a host of other financial products.  Ally offers mortgages to residents of all states except Hawaii. It doesn’t have any physical branches; instead, it offers an easy-to-navigate website and customer service staff that can be reached beyond standard business hours.

Best for?

Ally Bank is suited to:

  • Home buyers who are comfortable applying for a mortgage without meeting a representative face-to-face.
  • First-time buyers, with a bunch of useful articles and online tools to help estimate and understand monthly payments and fees.
  • Home buyers who have shopped around the market for good rates: under Ally’s price-match guarantee, if you find better pricing at another lender, send Ally Bank the complete loan estimate when you're ready to lock in your rate. They will match your rate and points as long as it's for the same loan terms Ally Bank offers and dated within the past 5 business days. 

Loan Features​

Ally Bank offers Fannie Mae's HomeReady mortgage program designed for first-time buyers and those who have limited down payment funds or unique circumstances, conventional fixed-rate and adjustable-rate home loans and doesn’t offer other government-backed loans (such as FHA loans or VA loans). By limiting itself to mostly conventional loans, it is able to focus on being excellent at what it does, and indeed it delivers with exceptional customer service and a commitment to matching the lowest rates on the market.

Another highlight of Ally Bank’s mortgages is its customer service. Its website contains a stack of information about its mortgage and refinancing options, helpful tips and tools, and is transparent about the latest rates and fees. The Ally Home Team is the name Ally Bank gives to the group of loan experts that are trained to accompany borrowers along every step of the process—from application to close. Ally Bank promises to provide a dedicated expert or experts to all applicants, to check in regularly to answer any questions, and to offer borrowers a choice of phone or email contact.

Top features include:

  • Unbeatable rates backed by Ally Bank's Price Match Guarantee
  • Help for first-time buyers
  • Speedy application process
  • Online interactive calculators to help you make educated decisions about affordability and payments
  • Concierge customer services all the way from application to close and payments.

The Application Process

It takes 2 minutes to get started. All you need to do is fill out a short online form with a few details about yourself and the size of the home loan you require, and one of Ally’s licensed home loan advisors will call you back.

The next step is the application process itself, which usually takes 1-2 weeks to complete, but the faster you get your documents in, the faster you can be approved. Ally will usually ask for the following documents:

  • Most recent pay stubs
  • Employment records
  • Bank statements
  • Tax returns

 Other documents Ally Bank might ask for:

  • Letter of explanation for gaps in employment greater than 30 days
  • Proof of other income or assets
  • Divorce decree or separation agreement
  • Proof all judgements and liens have been paid in full
  • Landlord information to verify rent payments
  • Proof of student loan payments

The final part of the application is the underwriting, and this usually takes 2-3 weeks. This is when Ally’s loan experts look over your documents, review the home appraisal, and make a final decision. In some cases, they may also ask for additional documentation. If your application has been approved, a closing day will be set to review and e-sign your closing documents. Ally will let you know within 15 days of closing who will be servicing your mortgage loan and where to make future payments.

Pros and Cons

ProsCons
Website is packed full of information and tools to help calculate costsDoesn’t offer government-backed FHA, VA, or USDA loans
Promises to match competitors’ lowest ratesHas no physical branches
Offers help for first-time homebuyers with low down payment options 

As an online-only branch, Ally’s strength is in enabling borrowers the ability to apply and get approved quickly, easily, and all from the comfort of their own home. Ally passes on a big chunk of the savings it makes from not having brick-and-mortar branches to the consumer. It offers competitive rates on fixed-rate and adjustable-rate loans, and best of all, it promises to match the lowest rate from any competitor—as long as the customer brings proof of a loan estimate within 5 business days of receiving it, and as long as the rate is for a term that Ally offers. Ally’s website is very easy to navigate, but just in case your questions aren’t answered, its loan experts are available for extended business hours Monday to Friday and are trained to guide buyers through the whole mortgage application process.

Loan Terms – The Bare Basics

Ally Bank offers fixed-rate loans over terms of 10-30 years and adjustable-rate loans over terms of 5-10 years.

To qualify, you must meet these requirements:

  • Be aged 18 or more
  • Be a U.S. citizen or primary resident
  • Have credit of at least 620

When assessing your application, Ally will consider your:

  • Credit score.
  • Debt-to-income ratio
  • Down payment
  • Employment history

Repayment Terms

For fixed-rate loans, Ally offers 10-year, 15-year, 20-year, 25-year, or 30-year terms. For adjustable-rate loans, it offers 5-year, 7-year, or 10-year terms.

Help & Support

Loan experts are available Monday to Friday, 8am-11pm and Saturday 10am-4pm ET on a toll-free number. To have a home loan expert call you back, simply fill out a short online form with contact information and details about the type of loan you’re looking for.

Summary

Ally Bank provides a quick and easy way of getting conventional and jumbo home loans at competitive rates and without having to leave the comfort of your own home. Its online service is easy to navigate and contains many useful tools to help everyone from first-time buyers to seasoned property investors understand their options. Best of all, with its price match guarantee, Ally promises to match the lowest competitor rates on the market.

Physical Address​

Ally Bank
2101 Rexford Rd., Suite 300 East
Charlotte, NC 28211

 
 

*Price Match Guarantee

If you find better pricing at another lender, let Ally Bank know. Send in the complete Loan Estimate from the other lender when you're ready to lock in your rate. Ally Bank will match the rate and points as long as it's the same loan terms it offers and dates within the last 5 business days. 

 

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