U.S. Bank Home Mortgage Review 2021

U.S. Bank at a glance

Although it's been in business for over a century, U.S. Bank is well positioned as a modern mortgage lender, with excellent loan offerings and tech-forward convenience. It offers online pre-qualification and preapproval, a fully digital loan application and a mobile app — all aimed at closing loans on time and with less stress.

Here's a breakdown of U.S. Bank's overall score:

• Variety of loan types: 5 of 5 stars

• Variety of loan products: 5 of 5 stars

• Online convenience: 5 of 5 stars

• Rates and fees: 4 of 5 stars

• Rate transparency: 4 of 5 stars

U.S. Bank mortgage loan types and products

U.S. Bank offers fixed- and adjustable-rate mortgages, government-backed FHA and VA loans, jumbo loans, home equity loans and lines of credit, and mortgages for low-to-moderate-income borrowers.

Construction, home renovation and vacant lot loans also are available, but only in the states where U.S. Bank has physical locations.

U.S. Bank has a few products that may not be available from some smaller lenders, though you won't find them mentioned on its website. One such product is the simultaneous second mortgage. Also known as a "piggyback” or 80-10-10 mortgage, the loan is typically used by borrowers with strong credit in areas with high real estate prices who can't come up with a traditional 20% down payment.

» MORE: How an 80-10-10 loan can save you money

U.S. Bank also provides expanded mortgage financing for physicians who are in residencies. The program offers home loans with higher loan-to-value guidelines and some leeway on debt-to-income ratios. Again, this loan isn't advertised on the U.S. Bank website, so if you're a medical professional, contacting a loan officer is the best way to learn more about this option.

The bank also assists borrowers in locating down payment assistance programs where they live.

U.S. Bank online convenience

U.S. Bank offers a basic mortgage pre-qualification process online, but be aware that it's just a first step toward determining how much house you can afford. With a pre-qualification, there is no formal commitment from the bank to issue a loan, and you're not committing to anything, either. It also won't impact your credit score.

A mortgage preapproval requires a full mortgage loan application, which you can complete at your leisure online by clicking "Apply for a mortgage" on the U.S. Bank's home page and using its online portal.

During the application process, U.S. Bank may be able to electronically verify your income and assets, using information from third-party sources like other banks, tax preparers and payroll services.

The digital application system reduces the time it takes to get documentation from the borrower and into the underwriter's hands, so loans can close faster, according to U.S. Bank.

If you prefer a face-to-face experience, the lender has over 3,000 branches with a mortgage loan officer available.

U.S. Bank mortgage rates and fees

One of the most important considerations when choosing a mortgage lender is understanding what the loan will cost. To provide consumers with a general sense of what a lender might charge, NerdWallet scores lenders on two factors regarding fees and mortgage rates:

• A lender's average origination fee compared with the median of all lenders reporting under the Home Mortgage Disclosure Act. U.S. Bank earns 4 out of 5 stars on this factor.

• A lender's offered mortgage rates compared with the best available on comparable loans. U.S. Bank earns 4 out of 5 stars on this factor.

Borrowers should consider the balance between lender fees and mortgage rates. While it's not always the case, paying upfront fees can lower your mortgage interest rate. Some lenders will charge higher upfront fees to lower their advertised interest rate and make it more attractive. Some lenders just charge higher upfront fees.

You can decide to buy discount points — a fee paid with your closing costs — to reduce your mortgage rate. Deciding whether to pay higher upfront fees is a matter of considering how long you plan to live in your home and how much cash you have to apply toward closing costs when you sign the loan paperwork.

» MORE: 'Should I buy points?' calculator

U.S. Bank mortgage rate transparency

U.S. Bank provides mortgage rates for many loan products on its website. These are national rates, based on general assumptions, so you're only getting an idea of the lender's rates. You'll also want to note that these rates are based on an above-average FICO score.

When it's time to get serious, customized rate information based on your credit score and property details will require contacting a mortgage loan officer.