Citibank Mortgage Review: Pros, Cons, Rates, What to Expect

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Selecting the best fit for your mortgage financing needs is one of the most important parts of buying a home. One company that you may be considering is Citibank mortgage. This article is going to educate you on this company and seek to offer a comprehensive review of its services.

Citibank Mortgage – Details and Overview

Ranking within the top five largest banks in the United States, Citibank mortgages parent company holds an estimated $1.792 trillion in assets as of the end of 2016. The initial bank was founded back in 1812 before undergoing a series of mergers and name changes that led to the bank we know today.

Currently, Citibank originates mortgages all across the United States. To find a loan officer near you, use their handy loan officer locator on their official website. As far as mortgage types, Citibank actively participates in all of the main loan programs that are currently available. More information on each of these loan programs will be explained further below.

Citibank Mortgage Loan Process Explained

Learning about the Loan Program Types

The first loan program we will talk about is the FHA loan. These loans are specifically designed for first-time home buyers. They have less stringent credit requirements and a much smaller down payment amount than other traditional mortgages. Currently, the minimum down payment for an FHA loan is 3.5 percent. Due to the high loan to value ratio, these loans require an initial lump sum payment called an upfront mortgage insurance premium and monthly mortgage insurance payments.

The second most popular loan program available with Citibank mortgage is a VA loan. These loans are reserved for military personnel and their immediate family members. Like FHA loans, they offer more flexible financing terms. Their best benefit is that they require no down payment or private mortgage insurance. Instead of PMI, you will pay an initial funding fee at closing for your loan.

The third type of loan program you will find at Citibank mortgage is rural housing loan. Also known as USDA mortgages, these loans are designed to encourage resettlement in areas with low population densities. Your property must be located in an approved area to qualify for this mortgage. Its main benefits are flexible credit score requirements and no minimum down payments. Like VA loans, you will find that these loans use a one-time funding fee instead of private mortgage insurance.

Citibank mortgage also offers traditional mortgages, refinancing, and home equity loans. The majority of their mortgage types come in adjustable rate and fixed rate types. The terms of loans can vary anywhere from ten to 30 years in length. As for rates, you can expect to see figures as low as 3.5 percent for shorter term lengths.

Preparing for Your Prequalification

Now that you have a sound understanding of the available mortgage types at Citibank mortgage, you’re ready to prepare for your prequalification. Before you start it, you should consider checking your credit report for any errors and omissions. You can request one copy of your credit report from all three credit bureaus for free once per year.

This is particularly important since erroneous information can lead to higher interest rates and outright denial of your loan later on at Citibank. Knowing your actual credit score will also make the prequalification process go much more smoothly. Once you have finished reviewing your credit report, you’re ready to start gathering your documents.

The first thing you should gather is your income documentation for the past month. This includes paycheck stubs, sales receipts, and any other income details that you rely on each month. Next, you should print out a copy of your checking and savings account statement for the prior month as well.

The next thing you should do is get in contact with your manager or HR representative. Ask them for the direct extension or fax number where you should send correspondences related to verifying your employment. This information will be vital later on in ensuring that your loan application proceeds smoothly and efficiently.

Now that you have all of the required information, you can begin the prequalification on the Citibank official webpage and find a home lending officer. Alternatively, you can contact a mortgage representative by calling 1-800-248-4638 directly. One important note to remember is that you will need to have a rough idea of the amount you wish to borrow to complete this process.

Dealing with Closing and Beyond

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Once your preapproval is done, you’re ready to begin shopping for homes. When you find one you are interested in, you will make an official offer on the house. If all goes well and the seller accepts, your loan origination process will progress to the next step.

In this portion of the mortgage process, you can expect underwriting to take another look at your financial health. This will include things like an updated credit report, requests for fresh income documentation, and potentially another verification of employment.

It is vital that you work to maintain your financial status before and during this process. Make sure to avoid requesting or opening new lines of credit and maintain timely payments on all your accounts. Any dip in your credit score can derail the underwriting process.

You can expect the underwriters to also look at specific property details as well. This information will mainly come from the appraisal of the subject property and will be related specifically to the type of loan program you are applying for. If all goes well, you can expect a final decision from the mortgage company within one to two weeks.

When your loan closes, you will sign important documents with your real estate agent and a closing specialist. Afterwards, you can expect to receive the keys to your new home and copies of important documents from the mortgage company. Be on the lookout for the payment remittance information regarding where to send your first payment. If Citibank maintains the servicing rights to your loan, you can easily make payments and check your account balance on their website.

PROs and CONs of Citibank Mortgage

Pros

  • Easy to apply online and check your application status.
  • Competitive rates.
  • Available in virtually every state.

Cons

  • Getting to the mortgage broker search screen is somewhat difficult.

Citibank Mortgage Customer Service Review

Overall, Citibank mortgage has fairly positive customer service reviews. For new prospective customers, their mortgage representatives are available from Monday to Friday from 8 AM to 10 PM EST. They’re also available Saturday from 9 AM to 7 PM EST as well.

For established customers, the hours are slightly more limited with customer care agent availability from 8 AM to 9 PM Monday through Thursday. They’re available on Friday from 8 AM to 7 PM and on Saturday from 8 AM to 12 PM. While slightly disappointing, these types of reduced hours are common among most mortgage providers for existing customers.

Contact Information

Final Word

Overall, Citibank mortgage is an excellent company to consider for your mortgage needs. They lend in virtually every state and participate in all of the most popular lending programs. If you’ve had experience with Citibank mortgage, feel free to share your thoughts with us about them in the comments section.

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