Looking to get a personal loan with Bank of America? Getting a granted bank of America personal loans might need a little more effort, but one thing for sure is the legitimacy of the financial institution would mean more security for the borrower.
Today I’ll walk you through your loan options with Bank of America.
looking for applying to home loan? Read this first.
Firstly, what are personal loans for?
A personal loan is a loan that’s typically unsecured, which means you will borrow the money without having to give any collateral up.
Personal loans are often used to cover expenses that people can’t currently cover today or in the near future. Some examples of reasons why people take out personal loans is because they need to renovate their home, buy their fiancee a wedding ring, pay for bills and groceries, or go on a vacation.
Essentially, a personal loan is used for just about any “personal” reason.
It is an insecure deal for the lender because of the amount of risks that the lender has to deal with. As the result, the lender then would set much higher interest rates on the loan, and also sometimes charge another additional fee.
The unsecured loan is an easy way to get fast loan with less paperwork hassles. This type of loan is provided by online loan services, personal lenders, and also big financial institution, for example the bank of america personal loans.
Getting A Personal Loan With Bank Of America
Bank of America offers all types of loans, including personal loans.
To apply for a personal loan, you’ll want to either give Bank of America a phone call or visit them in person at a Bank of America location.
If you want to visit someone in person and need to locate a Bank of America near you, click here. Or you can reach them by phone at 1 (800) 432-1000.
How To Get A Bank Of America Personal Loan
I recommend going into a BOA location in person to apply for a loan. As of right now, I was unable to find any information about applying for a loan online on BOA’s website, so I don’t think they have that option.
Also read: US Bank Account for Non Residents: Free Prepaid Debit MasterCard
What is BAC Home Loans?
Bank of America Home Loans is the mortgage unit of Bank of America. In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion.
What You’ll Need To Get Approved For A BOA Loan
All lenders use similar steps to qualify you and approve you for a loan.
Getting approved for a loan depends on many factors, but two major factors are your current credit score and how much money you currently make.
If you are looking to get an unsecured loan (a loan where you don’t have to give anything up for them to hold on to and keep in case you don’t pay back your loan), then you will likely need at least an average credit score, but preferably good to great credit score.
If you have fair or poor credit, then it could be difficult obtaining a personal loan under normal circumstances.
Applying for your loan
Once you have found a refinancing solution that fits your personal preferences, your needs and your budget, it’s time to apply for your loan.
Select your lender and complete your application in person, and depending on your lender, over the phone, or online. You’ll provide information about yourself and anyone else who is going to be listed as a co-borrower on the mortgage (like a spouse or partner). If you’ve already been pre-approved, you may have filled out some of the application details by this point.
What you’ll need to apply for bank of America loan
To apply for a refinance, you’ll need to provide your lender with documentation to help verify your employment history, creditworthiness, and overall financial situation. If you are applying with someone else (called a co-borrower, such as your spouse), they will also need to provide the same documents. Be prepared to provide the following:
- W-2s (for the last 2 years)
- Recent pay stubs (two most recent consecutive)
- Bank statements for all financial accounts, including investments (for the last 2 months, all pages)
- Signed personal and business tax returns (all pages and relevant schedules)
- If self-employed, a copy of most recent quarterly or year-to-date profit/loss statement
- Most recent monthly statement for any mortgage, home equity loan or line of credit you hold on your home
Your lender may require more documents, depending on your circumstances and the type of mortgage for which you’re applying. You can expect your lender to ask you details about your employment and financial history. With your permission, your lender will also run your credit report as part of the process.
How To Increase Your Chances Of Getting A Loan With Bank Of America
If you already bank with Bank of America, you can get a little more favourable treatment because they know who you are and they have some information about how you behave financially.
Plus, you are already their customer and they obviously would love to keep your business. So this could help you secure a loan they you may not normally qualify for.
Recommended: Tips To Improve Chances Of Getting A Small Business Loan
Predictable monthly payments
A fixed-rate mortgage offers you consistency that can help make it easier for you to set a budget: Your mortgage interest rate — and your total monthly payment of principal and interest — will stay the same for the entire term of the loan.
Fixed-rate mortgages are a good choice if you:
- Think interest rates could rise in the next few years and you want to keep the current rate
- Plan to stay in your home for many years
- Prefer the stability of a fixed principal and interest payment that doesn’t change
Increase your credit score
You should know what your credit score is. If you have no idea what your credit score is, you won’t know what types of loan interest rates you should be getting, and you also won’t know if you qualify for a personal loan. For example, if you have poor credit and didn’t know it, then you will be only hurting your credit score when you apply for loans because you won’t get approved for them, and credit inquiries hurt your score.
I recommend checking your credit score and also increase your credit score if it’s bad. It takes time to improve credit scores, but learn some steps that may help you improve your credit and rebuild your credit score.
Have the following documents ready – Bank of America will want to verify your income at minimum. So make sure you have proof of income and proof that it’s steady. Also, showing that you’ve lived in a location for a longer period of time (more than 1 year) shows stability and could help improve your chances of getting loan. So if you have any documents that proves this then have that ready too.
Bank Of America Loan Rates
The rate you will be charged for your personal loan will depend directly on what your credit score is.
If you fall in the good to great credit score range, then you can expect to get the best rates. You are statistically less risky and more likely to pay back your loan, so banks will charge you smaller interest rates.
If you have poor credit, you probably will not be approved for a loan. You will have to look at other options besides a conventional unsecured personal loan You could discuss secured personal loan options with a BOA representative.
If your credit is “fair” you may or may not get a loan. You could consider raising your credit score before you apply for a loan if you can wait for the money, or apply for a loan with BOA and hope for an approval.
Bank Of America Application & Requirements
To apply for a loan, give BOA a call or visit them at one of their branches in your local area. Use the link I provided above to find a location near you. You’ll need proof of identity to apply for a loan, and other documents to verify your financial information, like pay stubs to verify income. Your BOA representative will tell yo what you need to bring. You can give them a call first to inquire about their personal loans if you want to save yourself a trip.
How To Contact Bank of America & Get More Information
You can check out BOA’s F.A.Q’s page here. They will answer many common questions people have. Also, I listed their phone number above, as well as a link to how to find BOA branches near you. Check them out if you want to get in touch.