Overview: Bank of America vs Wells Fargo Home Loans
One of the most important decisions to make when buying a home is choosing the right lender. This decision is more than a one-night stand: it is like a 30-year marriage.
Given the title of this article, we assume that you have narrowed your home loan options down to these lenders: Wells Fargo vs. Bank of America. You also already know that just because your best friend (in the whole world) gives an excellent Bank of America home loan review does not necessarily mean this lender will best serve your specific situation.
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The truth is that you need a knowledgeable, objective opinion that takes into consideration both Wells Fargo and Bank of America mortgage reviews, praises, and complaints. In other words, you need proper advice, but if you cannot count on your friends, relatives, or a bank lender for advice, how will you know which bank to choose? The amount of research on this topic can be intimidating and reminiscent of your college days.
Fear not, future home buyer; you stumbled upon an unbiased compilation of Bank of America vs. Wells Fargo home loan reviews formatted into this easy-to-read article. After exhaustive research, it seems that the Bank of America vs. Wells Fargo debate comes out neck-and-neck when it comes to their home loans and mortgages. However, there are a few key differences to keep in mind, some of which may tip the scale for you one way or the other. This article describes how these two major lenders created their specific niches in the financial industry.
Read on for Wells Fargo vs. Bank of America home loan and mortgage comparisons. This article breaks down valuable information into these basic factors for your consideration: Wells Fargo mortgage reviews/home loan reviews, Bank of America mortgage reviews/home loan reviews, Wells Fargo mortgage complaints, and Bank of America mortgage complaints. Ultimately, this article is designed to help you discover which lender will best serve you in the years to come.
How to Compare Wells Fargo vs. Bank of America Mortgage Terms
Wells Fargo and Bank of America home loan interest rates differ, and Bank of America uses “discount points” which, in turn, make comparing the mortgage terms of the two lenders a bit difficult. The bottom line when comparing the home loan terms of big lenders comes down to two factors:
- Closing costs
- Total cost over the life of the loan
The first question we must ask is how much we need to put down to secure the loan and the property. Next, before committing to either Wells Fargo or Bank of America home loans, we need to know how much we will end up dishing out by the time the property is completely paid off.
Right now, Bank of America vs. Wells Fargo offers 3.75% vs. 3.875% interest rates, respectively, on 30-year fixed rate loans. On a $200,000 loan, this translates to $333,443.23 vs. $338,570.70, respectively, in total costs over the life of each loan. But there are factors beyond sheer cost to consider. Keep reading this article to receive unbiased, factual information regarding both lending agencies.
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Is Wells Fargo a Good Bank?
Wells Fargo has some key distinctions to take into consideration. Although Wells Fargo mortgage rates are higher, the bank was named a “Most Admired” company by Forbes magazine and is known for its excellent customer service. Customers who choose to build rather than buy have much to praise, too: Wells Fargo is one of only a few lenders to offer loans for home construction.
They do not stop there. Wells Fargo offers a locked rate for construction loans while your home is under construction. If rates fall, the bank is willing to float your interest down to the lower rate.
Whether you plan to build or buy, Wells Fargo’s website goes the extra mile with online tools and multifaceted features. Their online services for home loans and homebuyers is exceptional. For instance, the website boasts an interactive program called MyFirstHome that helps its user weigh out pros and cons of various home buying decisions.
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Top Wells Fargo Mortgage Complaints
Wells Fargo’s MyFirstHome feature on their website tips the Wells Fargo home loan reviews scales in their favor, but before we seal the deal, let’s take a look at Wells Fargo mortgage complaints.
The top Wells Fargo mortgage complaint is that customer loyalty does not weigh heavily (or at all) on the mortgage terms and refinancing. Multiple complaints from across the nation have similar stories. Customers stated that their established relationships with Wells Fargo did not help them to gain trust from this big lender and, ultimately, their financing requests were denied.
This major Wells Fargo mortgage complaint can be attributed to the size of the institution. Wells Fargo, and other big lenders, must adhere to different lending requirements than small lenders because so much money is at stake. The lending restraints placed on big lenders does not allow the credit worthiness of the borrower to account for much. Out of 61 reviews from 2015-2016, only 36% consider Wells Fargo a good bank.
Is Bank of America a Good Bank?
If you are in a rush to get approved, Bank of America boasts closing on a loan in as little as 17 days. Bank of America loan officers inform potential borrowers to prepare months ahead of time so the process can go as smoothly as possible.
Various Bank of America home loan reviews note that the bank is known for its wide variety of loan options. Although their rates tend to be higher than other major lenders, someone with a very unique financial situation may benefit from the many mortgage and home loan options provided by Bank of America.
Bank of America is improving their rates by offering special programs. In fact, 2016 brought with it Bank of America’s Affordable Loan Solution program. The big lender, along with Self-Help Ventures Fund and Freddy Mac, provides low-moderate income homebuyers a shot at mortgaging a home.
A great improvement over what Bank of America mortgage reviews say, the Affordable Loan Solution program would allow low-income homebuyers to access responsible lending services with as little as 3% down. Wells Fargo’s chief financial officer stated that they will not compete with this service because of the high default rates of low-income borrowers.
Bank of America Home Loan Complaints
What is the top Bank of America mortgage complaint? Out of the top 25 most complained about lending agencies, Bank of America fell second (only to Wells Fargo) in home loan complaints in 2015. The most complained about problems arose when customers were (1) unable to pay their mortgage and (2) while making a payment.
This can possibly be attributed to unresponsive websites and other online difficulties. When reviewing the websites of Bank of America vs Wells Fargo, Bank of America falls short. Live chat is available, but this is only a middle man who relays your Bank of America mortgage complaints and questions to a loan officer. In other words, you get the run-around.
This run-around has many downfalls, and miscommunication is a major Bank of America home loan complaint. For instance, the Bank of America website details an interest-only jumbo loan. However, the loan officer could not support this appealing offer on the BofA website.
The Bottom Line: Bank of America vs. Wells Fargo
Both Wells Fargo and Bank of America have their particular features that help homebuyers in unique situations. Wells Fargo offers construction loans. Many other lenders do not offer these types of loans (the home, itself, is usually the collateral on the loan.) However, Bank of America is partnering with other lenders to provide low- and medium-income homebuyers an opportunity to purchase property. This is also risky – and admirable – because of high default rates.
Over the course of 30 years, you may pay a few thousand dollars one way or the other with Wells Fargo or Bank of America. Both banks have far-reaching ATMs and expansive mortgage selection. However, Wells Fargo has a more impressive online banking platform than Bank of America.
Both Wells Fargo and Bank of America home loan complaints are similar, in that they do not provide adequate help when you are unable to pay your mortgage. Ultimately, your individual situation must dictate which lender you choose to work with. Depending on your situation, both Wells Fargo and Bank of America provide unique home loan options.
Both banks offer a pretty good range of fixed and adjustable-rate mortgages, but our bottom-line advice to potential borrowers is as follows:
- Do not be misled into believing that you can get all the information you need about Bank of America or Wells Fargo home loans just from their websites.
- Read Bank of America mortgage complaints from consumer report websites.
- Read Wells Fargo mortgage complaints from consumer report websites.
- Check the date on articles about Wells Fargo vs. Bank of America to be sure you are reading current information.
Taking these steps ensures that you are receiving well-rounded advice. This is incredibly important when choosing your home loan lender because – remember – this is a 30-year partnership to which you will commit. Do not underestimate the value of choosing the right lender for such a weighty, lengthy, important matter.
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