Mortgage

PNC Mortgage Lender Review — Options for Low Down Payments

PNC Mortgage Lender Review — Options for Low Down Payments
Written by Publishing Team

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Palestine National Bank Review 2022

Palestine National Bank Review 2022

Editor’s points: (4/5)

Palestine National Bank Review 2022

Editor’s points: (4/5)

  • Minimum Credit Score:

    not supplied

  • It is possible to apply online:

    not supplied

  • Minimum Down Payment:

    Anonymous

  • work in:

    All 50 countries

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Positives

  • He advertises mortgage rates on his website
  • $5000 Option Grant for Eligible FHA Borrowers
  • Offers all government sponsored loans, conventional mortgages, real estate equity products, and low down payment options
  • You can request a mortgage pre-approval and start a digital mortgage application online, then track the progress
  • It has more than 2,600 locations in 27 states and the District of Columbia

Negatives

  • Do not offer construction loans, renewal loans, or reverse mortgages
  • A greater than average number of consumer complaints registered with the CFPB.
  • It is difficult to get credit and down payment requirements for each type of loan

bottom line

PNC Bank offers a long list of mortgage options in all 50 states and Washington, DC. A lender may be an especially good choice for first-time homebuyers who need a government-sponsored loan or borrowers who qualify for a community loan or grant assistance.

editorial independence

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.

PNC Bank Full Review

PNC Bank is a full-service bank headquartered in Pittsburgh that creates a wide range of mortgages nationwide. In mid-2021, the company acquired BBVA USA and is now the fifth largest commercial bank in the United States

In addition to conventional home loans and all government-sponsored mortgages, PNC also offers checking and savings accounts, credit cards, auto loans, student loans, and wealth management services.

If you’re in the market for a mortgage, here’s what you need to know about PNC Bank.

PNC Bank: Types and Products of Mortgage Loans

PNC Bank offers home purchase mortgages, refinancing, and home equity lines of credit. Now in the lender list:

Among PNC’s traditional loan offerings is the Community Loan, geared toward low-to-medium income borrowers. The loan requires a minimum 3% down payment, waives private mortgage insurance, and allows borrowers to use gift money at closing. Eligible FHA borrowers can take advantage of the $5,000 PNC grant to help close costs in certain markets.

There is also a specialized medical loan of up to $1 million for interns, residents, fellows, and physicians who have completed their residency within the past five years. This loan does not come with a PMI, and gift money is allowed for the down payment.

PNC Bank also offers mega loans, which are mortgages that exceed a dollar amount called the matching loan limit. The cap is set at $647,200 for one-unit properties in 2022, although it could stretch to $970.800 in some high-cost areas. Customers who want to borrow more than the corresponding limit can get a huge loan of up to $5 million.

When comparing loan options, borrowers can choose between a fixed rate mortgage, with terms ranging from 10 to 30 years, or an adjustable rate mortgage (ARM), which comes at a fixed rate for a certain period of time. PNC Bank offers ARM terms where the rate is fixed for five, seven or 10 years. Then, depending on the product, the price can be reset either every six months or once a year.

PNC does not offer construction loans, renewal loans, or reverse mortgage loans.

PNC Bank: Mortgage Transparency

The PNC Bank website is easy to use and includes several calculators and educational resources on the home buying process, mortgage loans, and creating a realistic budget. Customers can also get help by filling out an online contact form, contacting a loan officer, or visiting one of the bank’s 2,600 branches in 27 states and Washington, DC.

PNC publishes mortgage rates on its website, although you will not be able to customize a quote with your personal details unless you contact the lender. There is no difficult credit check at this step, which can help you figure out if a lender is a good fit.

When you’re ready to request pre-approval or start a mortgage application, you can do it online and track your progress through a dedicated portal. Both the pre-approval application and the mortgage require a difficult credit pull. (This is common among all lenders.) After providing some basic information about you and the loan you want, you can authorize the lender to withdraw your credit and electronically verify your employment, income, and financial assets.

It is important to note that in 2020, PNC Bank had a higher average number of consumer mortgage complaints registered with the Consumer Financial Protection Bureau (CFPB) than other mortgage lenders we reviewed.

PNC Bank: Mortgage Rates and Fees

PNC Bank announces daily refinancing and purchase rates for Conventional loans, FHA loans, and VA loans with different loan terms in both fixed rate and adjustable rate options. These rates can change every day and are based on some assumptions, like your credit score is at least 740, your debt-to-income ratio is less than 36%, and your first payment is 20%. So not everyone will be able to qualify for the lowest prices.

You will need to contact the loan officer for a list of the lender’s fees and third-party closing costs you may pay, such as:

If you meet income requirements or live in an eligible community, FHA borrowers may be able to meet these costs (or down payment) with a $5,000 grant provided by PNC.

To qualify for a PNC loan, requirements vary based on the type of mortgage you’re looking at. PNC has not sent us their specific requirements, but it can help to know the industry standards. Borrowers typically need a credit score of at least 620 and a down payment of at least 3% to 5% to qualify for a conventional loan. Large loans usually have a higher credit score and down payment requirements because the lender takes on more risk.

But VA loans, USDA loans, and FHA loans are usually more flexible because they are subsidized by government agencies. Borrowers may qualify for FHA loans with a credit score of 580 (and a minimum down payment of 3.5%) or a credit score of 500 (with a down payment of at least 10%). VA loans and USDA loans do not require a down payment, although borrowers will need to cover financing charges up front with VA loans.

There are no penalties for prepayment at PNC Bank, so there is no additional cost if you want to refinance, pay off the loan or sell your home soon after closing. Customers can set a price for 30 to 90 days for free, but there is a fee to extend the price. Currently, PNC Bank closes home loans within 30 to 60 days.

Refinance with PNC Bank

If you have an existing mortgage, refinancing can help you save money, borrow against your home ownership, or modify the term of the loan. PNC offers the following types of refinancing loans:

  • cash disbursement refinance: These allow you to get a new mortgage for more than you owe. You will pay the old loan and get in your pocket the difference in cash, which you can use for any kind of expenses. However, your mortgage payments and bonus schedule will increase.
  • Refinance based on price and term: These allow you to get a new interest rate, a new loan term, or both. Homeowners usually apply to refinance on a price and forward basis to save money.
  • Simplify refinancing operations: If you currently have a government-sponsored loan, you may be able to save money with a VA Interest Rate Reduction (IRRRL) Refinancing Loan, FHA Simplification Loan, or USDA Simplification Loan. These programs cut some of the paperwork involved in refinancing and make it easier to save money.

Comparison of PNC Bank with other mortgage lenders

PNC . Bank real mortgage Fairway Independent Mortgage Corp.
Minimum credit score not supplied not supplied 600 for an FHA and veterans bill; 620 for the traditional model; 660 jumbo
Minimum Down Payment not supplied 0% for Virginia and the USDA; 3% for conventional purposes; 3.5% for FHA 0% for Virginia and the USDA; 3.5% for FHA; 3% to 5% conventional
Where does the lender work? All 50 states and Washington, DC 47 states and Washington, DC All 50 states and Washington, DC
Main types of loans Conventional, Jumbo, VA, FHA, USDA, Adjustable Rate, Flat Rate, Refinance, Cash Refinance, Simplify Refinancing, Home Ownership Lines of Credit Conventional, Jumbo, VA, FHA, USDA, Building Loans, Adjustable Rate, Flat Rate, Many Refinance Programs, Home Equity Loans, Lines of Credit for Home Purchases Conventional, Jumbo, VA, FHA, USDA, Various Renewal Loans, Adjustable Rate, Flat Rate, Refinance, Cash Refinance, Reverse Mortgage Loans, Home Equity Loans, Lines of Credit for Home Purchases

How to shop for the best mortgage rate

Getting the best mortgage rate is important because it affects the cost of borrowing over the life of the loan.

Here is an example to show how a small change in mortgage rates can make a difference. Let’s say you receive two mortgage rate offers on a $300,000 home with a 20% down payment and a term of 30 years.

Interest rate Capital and monthly payment of interest Total interest paid over 30 years Interest saved
3.25% $1044 $136,141
3.00% $1,011 $124,455 $33 a month and $11,686 over 30 years

With an interest rate of 3.25%, the monthly principal and interest payments come to $1,044. But with a 3.00% interest rate, you can save $33 per month in interest costs. This may not sound like much, but it adds up to $11,686 in savings over 30 years.

But you won’t know if you’re getting the best deal unless you shop. It is a good idea to submit mortgage applications to several lenders and request a mortgage loan estimate. Use these documents to compare the interest rate, annual interest rate, and lender fees on each loan. A mortgage calculator can help you see how much you can save at the lowest offer.

editorial independence

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.

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