Are you in the market for a new home and considering CIT Bank for your mortgage? You're in the right place. In this article, we'll explore CIT Bank's mortgage options, investigate their rates and fees, and discuss the application process. We aim to provide you with a detailed yet easy-to-understand guide to help you make an informed decision.

CIT Bank's Mortgage Options: A Detailed Look

In a mortgage, what you choose could majorly impact your home-buying path. CIT Bank provides various mortgage products to cater to different financial needs and home-buying goals. Here's a closer look at what CIT Bank has to offer:

Conventional Mortgages

30-Year and 15-Year Options: These are the initial types of mortgages. CIT Bank offers 30–year and 15-year conventional mortgages, allowing the borrower to select between long-term repayment plans of more than thirty years with reduced monthly payments or short-term repayment allocations that require significant monthly payments but lower overall interest is paid throughout the loan.

Suitability: It is suitable for those who earn a stable income and prefer receiving the same amount every month. Implying that your mortgage payment will remain constant throughout loan life despite changes in the market; the interest rate is always at a fixed value.

FHA Loans (California Only)

Federal Housing Administration (FHA) Loans: These government-guaranteed loans help first-time buyers or those with bad credit history. In the case of CIT Bank, these loans are provided for California only.

Features: They are famous for being less harsh on down payments and credit scores for FHA loans. They may be an alternative for individuals not qualifying for a regular mortgage.

Suitability: It is unquestionably valuable for Californian residents planning to buy their first house or those with poor credit history.

Jumbo Loans

High-Value Property Mortgages: Jumbo mortgages are for properties that do not conform to the limits set by Fanny Mae and Freddie Mac. They are mostly used to purchase high-priced or luxury homes.

Suitability: Great for borrowers who aim to buy a big-value property and have good credit records as well as strong financial standing.

HomeRun Mortgage

Proprietary Loan Product: HomeRun Mortgage is CIT Bank's unique product in the mortgage business.

Features:

• Low Down Payment: A 3% down payment, or 5% in high-cost areas, makes it available for most first-time homeowners and those who do not have much savings.
• Flexible Credit Requirements: This feature also makes it an attractive option for individuals with not-so-perfect credit records.
• No Mortgage Insurance: Normally, mortgages with less than 20 percent down call for private mortgage insurance PMI; however, in the case of HomeRun Mortgage, this is not required, which may save borrowers hundreds each month.

Suitability: So this loan is good for borrowers who meet the income and property requirements – first-time home buyers, those who don't have much to part with as a down payment, or anyone looking to avoid mortgage insurance

Applying for a CIT Mortgage

Applying for a mortgage with CIT can be somewhat inconvenient compared to other lenders. Their website lacks a live chat feature, and finding contact information requires some navigation. However, once connected with a representative, you'll find they are knowledgeable and ready to assist with your queries. Application options are diverse, including online, over the phone, via video call, or in-person meetings.

Rates and Fees

CIT's mortgage rates are notably competitive, with average origination fees. Balancing the lender fees against the mortgage rates is important when evaluating their offers. Interestingly, CIT offers rate or closing cost discounts for existing account holders, with the discount scale based on account balances.

Pros of Choosing CIT Bank

• Variety of Loan Terms: CIT bank offers different kinds of mortgages, including 30-year and 15-year conventional mortgages, FHA loans, jumbo loans, and their HomeRun Mortgage. This spectrum allows for different money needs and objectives.
• Relationship Discounts for Existing Account Holders: The possibility of CIT Bank account holders qualifying for rate or closing cost discounts could also be quite advantageous in the long run concerning savings on this loan. Similarly, the higher the account balances would be in enjoying such discounts.
• Low Down Payment Options: This HomeRun Mortgage choice offers a low down payment, so first-time homeowners and people who seem unable to save much can enter their homes more easily.
• No Mortgage Insurance with HomeRun Mortgage: Unlike many other low down payment options, HomeRun Mortgage does not require PMI, meaning borrowers can save on monthly payments.
• Flexible Credit Requirements: CIT Bank includes features such as the HomeRun Mortgage, which enables borrowers of different credit scores to obtain home loans.

Cons of Choosing CIT Bank

• Requirement to Speak with a Loan Officer: Borrowers first need to visit a loan officer for application, which takes more time and is much more complicated than filling out an online form.
• Lack of Upfront Information on Specific Loan Options: The bank does not provide detailed information about the various types of loans online. Therefore, a person has to go physically to ask.
• Limited Availability of FHA Loans: CIT Bank also provides FHA loans. However, they are available only in California, making it limited for borrowers from other states.
• No Online Pre-Approval Process: Compared to CIT Bank, other competitors have an immediate online pre-approval process that can speed up the early days of mortgage shopping.
• No Home Equity Products, Renovation Loans, or Construction Loans: Therefore, the fact that CIT Bank does not offer such very special loan products may be considered a drawback for those considering home financing alternatives on a much wider scale.

Who Should Consider a CIT Bank Loan?

If you're already a CIT Bank customer or planning to open an account, your mortgages might be particularly appealing due to lower interest rates through relationship discounts. You may potentially save a considerable amount of money throughout the duration of your loan.

Conclusion

CIT Bank offers a range of mortgage options that are both competitive and diverse, particularly beneficial for their existing customers. While there may be some difficulties in the application procedure, opting for CIT Bank as your lender can result in considerable savings due to the various loan choices available. When making any financial decision, conducting thorough research and carefully considering your unique needs and circumstances is important.