Ally Bank began offering direct-to-consumer home loans in 2016. The bank and lender provides several mortgage options, including conventional loans, jumbo loans and adjustable-rate loans in five- seven- or 10-year terms. Ally Bank also offers refinancing options, including rate-and-term and cash-out, but doesn't offer FHA loans, VA loans, USDA loans or home equity loan options. You can lock in your rate for up to 45 days. For a home purchase loan, the bank currently averages 35 days to close.
How Bankrate scored Ally Bank
- Affordability: Ally Bank’s mortgage rates aren’t as competitive compared to those of some other lenders, but it doesn’t charge loan fees.
- Availability: Qualified borrowers in all states can get a mortgage through Ally Bank. You won’t be able to get a government-backed loan from this lender, however.
- Borrower experience: Some customers have shared less-than-stellar feedback about the bank online, but the complaints aren’t typically tied to mortgages, but rather banking services or auto loans.
Affordability: 3.4/10
Ally Bank doesn’t charge lender fees, and it posts detailed rate information on its website, often updated throughout the day. The bank’s mortgage rates are right in line with Bankrate’s averages, so shop around — you might find you get a better deal elsewhere.
Availability: 9/10
Ally Bank only offers conventional loans, both conforming and non-conforming if you’re buying a higher-priced property. It doesn’t offer FHA, VA or USDA loans, which might be limiting for some borrowers. The bank is licensed to lend mortgages in all states.
Borrower experience: 8.6/10
Ally Bank has an A grade from the Better Business Bureau, but isn’t accredited by the organization, and its Trustpilot rating is “Bad” based on several hundred complaints (at the time of this review). However, its J.D. Power score is near the top of the pack of large loan originators. The bank doesn’t have brick-and-mortar locations, so if you’re looking to get a mortgage, you’ll do so online. It offers tips and educational articles about the mortgage-lending process on its website, and if you have the Ally Bank app, you can access your home loan easily on your phone. Once preapproved, you'll upload, sign and submit documents online.
How to apply for a mortgage with Ally Bank
You can apply for a mortgage with Ally Bank online or by phone at 855-256-2559. Here are some tips to prepare for the process:
- Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
- Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
- Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)
Refinancing with Ally Bank
Ally Bank offers both rate-and-term and cash-out refinancing options.
FAQ about Ally Bank
What is Ally’s partnership with Better Mortgage?
Ally's fast preapprovals and rate locks are powered by its partnership with Better, a digital mortgage lender.
