Truist (BB&T & SunTrust) 2021 Mortgage Review

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Truist Bank became the seventh largest commercial bank in the United States following the merger of SunTrust Bank and BB&T Corp. in 2019. Truist is now based in Charlotte, North Carolina and is currently moving all products within a single retail line. As a full-service bank, customers can find consumer banking, mortgages, home equity products, credit cards, investment products, and several types of loans.

Home Buyers Can Get Truist mortgage loan in 47 states and Washington, DC, and customers can apply online, by phone, or at one of the thousands of SunTrust and BB&T offices located in the United States. You can check mortgage rate quotes and find information about the home buying process both on SunTrust and on the BB&T Websites. When you launch an online mortgage application from any brand, you will be redirected to the Truist Mortgage Origination platform where you will complete the process. Here’s what you need to know about Truist mortgage before applying.

Pros and cons of Truist (SunTrust and BB&T)

pros

  • Offers a full range of major mortgage programs including regular and government-backed loans.

  • Advertises mortgage rate samples on SunTrust and BB&T websites.

  • Mortgages are available in 47 states and Washington DC.

  • Applicants can apply by phone, mail or in person. They can also go to the BB&T or SunTrust physical office to complete the application in person.

Minuses

  • Gathering information on mortgage products is a little confusing due to the merger.

  • Mortgages are not available in Hawaii, Alaska, or Arizona.

Truist (BB&T and SunTrust): loan types and products

Truist does not offer reverse mortgages or home improvement loans, although most borrowers will find what they are looking for on the lender’s menu. Here’s what Truist Bank is offering right now:

Loans from construction to permanent allow home buyers to finance the costs of building a new home. After the house is built, the loan is converted into a traditional mortgage for 15 or 30 years. This type of loan has become popular as the number of households declines, but the demand for housing is growing.

Truist also gives home buyers the choice between fixed and variable rate mortgages. With a fixed rate mortgage, your mortgage rate never changes. This can be a good option if you find a low rate and prefer predictable payments. ARM offers a flat rate for certain times only. Then, depending on market conditions, the rate can rise or fall at certain intervals until the end of the loan term. Truist offers ARM in 5/6, 7/6, or 10/6 timing. So, for example, with ARM 5/6, the rate is fixed for the first five years and then adjusted every six months. ARMS Truist has limits on the adjustment rate as well as the duration of the loan.

And if you already have a mortgage, you can exchange it for refinancing at the rate and term, cash out refinancing, FHA Optimizes Refinancing, VA Refinancing of cashing out, VA IRRRL refinancing, or Optimizing USDA Refinancing

Truist (BB&T and SunTrust) Transparency

SunTrust and BB&T are still bundled under the Truist brand, so you can browse any website to find information, including course quotes. Both websites are easy to navigate and offer several tools and resources to help borrowers with their mortgage process. You will find calculators, blog posts, videos, and detailed explanations for each mortgage program. You can also call, email, or visit the branch to ask questions, get pre-approval, or apply for a loan.

According to a Truist spokesman, it usually takes 30 to 45 days to close a deal with a lender, while a refinancing deal takes 45 to 60 days to close.

Truist (BB&T and SunTrust): rates and fees

You will find a detailed selection of Truist mortgage rate quotes on both SunTrust and BB&T Web sites. Truist advertises daily refinancing and purchase rates for 15 year loans, 30 year loans, giant loans, VA loans, and FHA loans… You can adjust the quotes to include zero discount points, 1 discount point, or 2 discount points. Discount point, or mortgage point, is an optional down payment that you pay in exchange for a lower interest rate.

These rates are subject to change every day and are based on several assumptions. For example, a 30 year flat purchase rate assumes your credit score is above 740 and your down payment is at least 20%. So everyone will not be able to claim the lowest rates. During the pre-approval process, you will receive a more personalized offer – including your potential rate and monthly payment – depending on your financial situation, down payment, the mortgage program you want to use, and other factors.

Borrowers may also need to budget for closing costs, for example:

  • Evaluation fee
  • Credit Report Fee
  • Search by title and title insurance
  • Entry Fee
  • Escrow deposit
  • Prepaid interest
  • Discount points if you decide to buy them

The minimum credit rating required by Truist varies depending on the type of loan, but the representative did not provide details. However, it does help to find out the minimum credit score requirements by type of loan. Regular loans usually require at least 620 points, while your credit rating can range from 500 to 580 with an FHA loan, depending on your down payment. Both the VA and the USDA do not set credit requirements, although the lender may have a minimum. Of course, in any loan program, a higher credit rating can help you get better mortgage rates.

A Truist representative told us that borrowers never pay prepayment penalties and can lock the rate free of charge for up to 90 days. Blocking renewal fees may apply depending on the reason for the renewal.

Refinancing with Truist (BB&T and SunTrust)

If you already have a mortgage, you can refinance it with Truist using the following options:

  • Refinancing when cashing out allows homeowners to get a mortgage in excess of their debt, pay off their current mortgage, and keep excess cash. The borrower then repays the new, larger loan over time and can use the money for any expense.
  • Refinancing rate and term allows homeowners to change the terms of the loan, the interest rate, or both. It can help you save money on your monthly mortgage payments, get rid of private mortgage insurance, or speed up your payment deadlines.
  • VA interest rate cut refinancing loan (IRRRL) helps homeowners refinance their VA secured home loans to make their monthly payments more affordable. Applicants can get a lower interest rate or switch from a regulated rate to a fixed rate.
  • FHA Optimizes Refinancing allows FHA loan holders to obtain a new FHA mortgage with a lower interest rate with minimal paperwork. Rather than going through a credit check and proof of income, homeowners can qualify if they have a perfect history of making payments on time.
  • Optimizing USDA Refinancing also allows homeowners to skip some of the typical credit and income checks. If you have USDA Loan and you’ve made timely payments in the past 180 days, you can qualify for USDA Simplified Refinancing to help you save money.

Truist (BB&T and SunTrust) Compared to Other Mortgage Lenders

Truist (BB&T and SunTrust) Rocket mortgage Churchill mortgage
Minimum credit rating Not provided 620 for ordinary; 580 for FHA 620
Minimum down payment 3% for ordinary; 3.5% for FHA; 0% for VA and USDA From 0% to 3.5%, depending on the loan program From 0% to 5%, depending on the loan program
Where does the lender work? 47 states and Washington, DC All 50 states and Washington DC All 50 states and Washington DC
Main types of loans Regular, Large, VA, FHA, USDA, Construction Loans, Adjustable Rate, Fixed Rate, Multiple Refinancing Programs, Real Estate Loans, Home Equity Loans Regular, Large, VA, FHA, Fixed Rate, Refinance, Cash Refinance Regular, Large, VA, FHA, USDA, Miscellaneous Renovation Loans, Adjustable Rate, Fixed Rate, Refinancing, Cash Payout Refinancing, Reverse Mortgages, Real Estate Loans, Home Equity Loans

How to shop around to get the best mortgage rate

Mortgage rates can fluctuate every day and even by the hour, and each lender has a different way of setting rates for clients. So what’s important mortgage lenders research and get multiple quotes to find the best deal. You will be able to compare closing costs and find out how even a small difference in interest rate can help you. save hundreds or thousands of dollars during the term of the loan.

Take a look at one example: Suppose you received two quotes for a mortgage rate on a $ 200,000 home with a 15% down payment and 30 years maturity.

Interest rate Monthly payment of interest and principal Percentage saved
3.20% USD 735
3.00% USD 716 $ 19 per month or $ 6840 over the loan term

At an interest rate of 3.2%, the monthly principal and interest payments are $ 735. But at an interest rate of 3.0%, you save $ 19 a month in interest expenses. It may not sound like a lot, but in 30 years you will save $ 6,840 in total.

After applying for a mortgage, make sure you receive Loan valuation from each bank. Even if you find a good deal, you can use this document for further negotiations. Send your best loan estimate to another lender and ask them to give you the best interest rate or closing cost – or both. Lenders may be willing to compete for your business, especially if you have good credit.

Bottom line

Truist has two drawbacks: you cannot get a mortgage from this lender if you live in Hawaii, Alaska, or Arizona. And the process of transferring all of Truist’s bank branches and retail products under one brand can be confusing in the next couple of years.

But if you can get around these disadvantages, Truist is a great option for most borrowers. It offers all major mortgage programs including regular and government-backed loans, construction loans and large loans. The lender is a full-service bank, which means you can conveniently handle your day-to-day bank and mortgage payments in one place, and there are thousands of physical branches where you can get personal assistance.

Since mortgage rates and borrowing costs differ depending on the lender, it is still worth looking into when buying a home.

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