In a Nutshell
pros
- $500 payment towards closing costs
- Dedicated mortgage advisors with local knowledge
- Down payments as low as 3%
cons
- No bricks and mortar branches
- FHA and VA loans not available
Ally Bank at a Glance
| Direct lender or marketplace? | Direct |
| Loan types | Fixed-rate, adjustable-rate, jumbo |
| Loan amount | $75,000-$4m |
| Repayment terms | 15, 20, 30 years |
| Minimum down payment | 3% |
| Minimum credit score | 620 (700 on jumbo loans) |
| Suitable for | Securing a mortgage deal online |
Overview
Headquartered in Detroit, Ally Bank is an online financial services company that offers fixed-rate, adjustable-rate, and jumbo mortgage products. If you purchase a property or refinance through the company, you'll work with the same dedicated loan officer throughout the entire process. For customers who have been with Ally Bank for more than 30 days, it also pays $500 towards closing costs.
Suitable For?
Ally Bank offers mortgage deals for those with a minimum credit score of 620, or 700 in the case of jumbo products. This makes the lender particularly suitable for borrowers with a fairly robust financial history. With down payments as low as 3% for low-to-moderate-income borrowers under Fannie Mae’s HomeReady scheme, Ally Bank could be a good choice for buyers who would otherwise struggle to get on the property ladder.
Types of Loans/Products
Ally Bank offers purchase and refinance loans with a range of fixed-rate, adjustable-rate, and jumbo products.
- Terms: 15-30 years
- Minimum credit score: 620 (700 on jumbo loans)
- Minimum down payment: 3% under the Fannie Mae scheme or 5% with private mortgage insurance
The Application Process
Although every home loan is different, most applications follow the stages outlined below:
- Visit the customizable interest rate tool: enter details such as your ZIP code, home value, and property type to get an indication of the interest you’re likely to pay.
- Secure a pre-approval: input your details to receive a pre-approval letter in as little as 3 minutes.
- Complete your application: you can manage the entire process online, which includes uploading and managing your documents.
- Close the deal: you’ll need to complete this stage in person, with the bank instructing you where to go and what to bring.
During the application process, you’ll usually need to provide copies of the following documents:
- Most recent pay stubs
- Employment records
- Bank statements
- Tax returns
Ally Bank claims its mortgage services close 10 days faster than the industry average.
Repayment Terms
Ally Bank offers fixed-rate mortgages with 15, 20, or 30-year terms.
Help & Support
You can get in touch with Ally Bank by phone or email from 8 am-10 pm (ET) Monday to Friday and 10 am-4 pm (ET) Saturdays. Should you take out a loan with the company, Ally Bank guarantees you’ll have the same dedicated advisor throughout the process.
T: (855) 256-2559
E: help@allyloans.com
Summary
If you have a relatively strong credit history and are comfortable with managing your finances online, Ally Bank has a great deal in its favor. As well as offering pre-approvals in as little as 3 minutes, the company provides a $500 contribution towards closing costs for those who have been with the bank for more than 30 days.
The most significant downside we encountered is that Ally Bank doesn’t offer the full suite of products that some of its competitors do, such as products for veterans (VA loans) or federally backed FHA loans. If this isn’t an issue, however, it could well prove the right lender to help you buy or refinance a home.
FAQs
What types of homes does Ally Bank offer loans for?
The company covers the following property types: single-family homes, townhomes, condos, multi-family homes, second homes, and investment homes.
Does Ally Bank have bricks and mortar branches?
No, the lender offers an entirely online solution. You will, however, need to close your deal in person, as instructed.
Does Ally Bank require home appraisal?
Yes, Ally Bank will introduce you to a home appraisal company and also set up an appointment on your behalf.
Do agents work on commission?
No, agents have no financial incentive to encourage you to spend more.
Physical Address
Ally Detroit Center, 500 Woodward Ave, Detroit, MI 48226
Methodology
This review was compiled using information from Ally Bank’s website and emailing the customer service team.
