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About BNC National Bank
BNC National Bank (NMLS #418467) is an online bank and mortgage lender that’s been in business for over 30 years. The company is headquartered in Bismarck, North Dakota. It offers conventional, FHA, VA, USDA and jumbo loans. You can apply for a mortgage directly through the company’s website.
Pros & Cons
Pros
- Experienced VA lender
- Competitive rates
- Online preapproval decisions in minutes
Cons
- Limited fee info online
- No HELOCs or home equity loans
- Few in-person branches
Bottom Line
BNC National Bank is a full-service bank that offers digital banking and mortgage products. It’s a seasoned mortgage lender for first-time homebuyers and veterans. BNC lends in all 50 states, but it has physical offices in only a few.
Featured Reviews
We used BNC back in 2018 and we used them again. We’re very happy with them. The application process was as smooth as it could be. One of the reasons that we came back was because...
Read full reviewI was working with three different lenders trying to work a deal out. So, it took a little bit of time. But once I committed to BNC, they were great. We got everything knocked out...
Read full reviewRates
BNC National Bank doesn’t publish its starting rates online, but according to Home Mortgage Disclosure Act data, the company has had a lower average rate for home purchase loans than the national average in recent years. In 2021, its average rate was 0.25% lower than the national average.
BNC National Bank offers both fixed-rate and adjustable-rate mortgages (ARMs). Fixed-rate mortgages are popular when rates are low; when rates climb, many borrowers choose ARMs for the short-term savings they offer. ARMs have relatively low introductory rates for one to five years, after which the rate resets and adjusts according to market conditions. Before you get an ARM, keep in mind there’s no guarantee rates will come down over time.
BNC National Bank average home purchase rate vs. national average
| Year | Difference from national average |
|---|---|
| 2021 | -0.25% |
| 2020 | -0.15% |
| 2019 | -0.20% |
Application process
You start the preapproval process by applying through the company’s website. Once you create an account, the application asks questions about the type of home you’re looking to purchase, your assets (like bank account balances) and your demographics. You may also need to upload financial documents, like bank statements and pay stubs, before you can submit the finalized application.
A loan officer is available to assist you with your application or answer any questions you may have about the process. After completing the application, you could receive a preapproval decision within a few minutes.
Matthew, a ConsumerAffairs reviewer from Matthews, North Carolina, had this to say about BNC National Bank: “The rep worked with me and gave me the lowest available rate. I got a conventional loan and everything rolled fast. It was a good process. He told me what I needed, and I got those things. The portal was easy to upload information. It was a good experience and I would use BNC again. I recommended them to a friend and he used them as well.”
BNC National Bank application features
| Features | Availability |
|---|---|
| Online application | |
| Mobile document upload | |
| Physical branches | Four states |
| Publishes minimum rate on website | X |
| Rate lock | 10 days to 12 months |
| Pre-qualification (no hard credit pull) | |
| Certified approval letter |
Loan types
BNC National Bank offers a variety of mortgage loan options to suit borrowers’ needs. The company offers conventional loans (with fixed or adjustable rates), jumbo loans, FHA loans, USDA loans and VA loans. Conventional loans generally come with 15-year, 20-year or 30-year terms. The company also offers 203(k) loans, which are mortgage loans insured by the FHA for purchasing and remodeling a home.
BNC National Bank states that it specializes in VA loans and mortgages for first-time homebuyers. The company originated over $1.2 billion in VA loans alone in 2021.
That same year, BNC National Bank received 3,157 home purchase applications. Of those applications, about 64% (2,023) turned into closed home purchase loans, and about 8% (253) were denied.
Loan applications for home purchases only by year
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| Home purchase applications | 3,157 | 1,979 | 2,469 |
| Home purchase loans closed | 2,023 | 1,344 | 1,477 |
| Home purchase applications denied | 253 | 178 | 255 |
| Home purchase preapprovals denied | 0 | 0 | 0 |
Refinancing
BNC National Bank offers refinancing for jumbo, FHA, USDA and VA loans. You can refinance to lock in a lower interest rate, shorten your loan term or get cash.
In 2020 and 2021, many borrowers refinanced their mortgages to secure lower rates. The majority of loans BNC closed in 2021 were for refinancing (66% for refinances and cash-out refinances combined). Less than one-third (31%) were for home purchase loans.
Rates have since risen, and fewer borrowers are expected to refinance in 2022. For reference, the average 30-year fixed-rate loan rate was under 3% in August 2020; it was 5.13% in mid-August 2022, according to the Federal Reserve Bank of St. Louis.
Home purchase vs. refinance loans by year
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| Home purchase loans | 31.01% | 16.05% | 36.38% |
| Refinance loans | 46.34% | 65.24% | 40.27% |
| Cash-out refinance | 19.51% | 16.73% | 19.46% |
Requirements
BNC National Bank lists many of its borrower requirements on its website. Most seem to adhere to the industry norms, though it does require a credit score of 620 for a VA loan (some lenders may allow 580). BNC National Bank also allows a 3% down payment for first-time homebuyers on conventional loans; some lenders require more.
The company doesn’t disclose its minimum credit score requirement for FHA loans, but it does state that this type of loan allows for lower credit scores. This could be an ideal choice for first-time homebuyers with lower credit scores.
National mortgage requirements by type
| Min. credit score | Min. down payment | Compare with other lenders | |
|---|---|---|---|
| Conventional | Typically 620 | Typically 3% | Mortgage lenders |
| FHA | 500 | 3.5% with 580 credit score | FHA lenders |
| VA | Set by lender (often 580) | 0% | VA lenders |
| USDA | Set by lender (often 640) | 0% | USDA lenders |
Cost and fees
BNC National Bank doesn’t list its lender fees for new mortgage loans online. Closing costs usually include a credit report fee, title search fees, homeowners insurance premiums, property taxes and other fees.
If you’re concerned about paying these costs, you can ask BNC if it offers any closing cost assistance programs.
Once you’re preapproved, BNC National Bank should give you a Loan Estimate, which details all the estimated closing costs. You’ll receive Closing Disclosures at least three business days before your closing, which will show the finalized loan costs and fees.
FAQ
How does BNC National Bank work?
BNC National Banks specializes in home loans for first-time homebuyers and veterans. It offers conventional, FHA, VA and jumbo loans.
BNC provides a digital mortgage experience; you can apply for a loan on your phone in less than 10 minutes, then follow up with your loan officer by phone, email or text. You can also manage your mortgage payments online through the company’s loan portal.
Is BNC National Bank legit?
BNC National Bank is a legitimate bank and mortgage lender. It’s experienced in helping veterans and first-time homebuyers find the right products and resources, and it offers helpful educational tools. It doesn’t publish mortgage rates or detailed descriptions of its products online, but it offers one-on-one connections with borrowers, so an experienced loan officer should be able to answer any questions.
Where is BNC National Bank available?
BNC National Bank’s mortgages are available in all 50 states. The company has branches in Arizona, Kansas, Illinois and North Dakota.
BNC National Bank Reviews
ConsumerAffairs has collected 105 reviews and 66 ratings.
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Reviewed July 30, 2022
The individual that we worked with was very responsive and the experience was very straightforward. This is the second time that we've purchased a home. It can be cumbersome or stressful at times but we felt there were no silly questions. I appreciated that, too.
Reviewed July 24, 2022
It was a new construction and we started and then we stopped. Then, it was going to take longer than we thought. But we got the mortgage. So, the end result was good. The rep, Vic, did his job and it all worked out.
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Reviewed July 17, 2022
The application process was smooth and quick. We had great communication. But after BNC did my mortgage, they turned around and sold my mortgage off to somebody else. The transition hasn't been the smoothest because the letters I've been getting don't clarify who I need to send my payment to. Everybody else was just as confused as I was because of the way that the letters were worded. Somebody finally clarified that once there's a transferring of mortgages, the government allows for a 60 or 90-day no bad reporting for late payments. I'm just waiting on my payment information from the new bank.
Reviewed July 15, 2022
They gave me the lowest rate and the senior mortgage consultant I worked with was extremely helpful, knowledgeable and friendly. The process was very smooth and there was constant communication. We closed in less than two months.
Reviewed July 10, 2022
Julie ** and her team were extremely helpful and go over and above good customer service. Would definitely go with BNC again if I ever need another mortgage loan. This is the second time we have worked with Julie and both times were as easy as this process can possibly be.
Reviewed July 10, 2022
I had already used BNC before. I had called a few years back for a refi and talked to Jennifer and we did a refi. I called back again and I did another refi with a cashout. It took a long time because I had done the other one too early, but it was fine. I was completely satisfied and happy with everything.
Reviewed July 9, 2022
The rep worked with me and gave me the lowest available rate. I got a conventional loan and everything rolled fast. It was a good process. He told me what I needed and I got those things. The portal was easy to upload information. It was a good experience and I would use BNC again. I recommended them to a friend and he used them as well.
Reviewed July 5, 2022
The application process was super easy. I liked being able to just upload our documents or link our accounts and that’s the part I liked the most. I was also impressed with the timeliness and professionalism of the rep. We did a 90-day pre-lock so the process was right at 90 days. It was all positive dealing with the team and I had a very good experience.
Reviewed July 4, 2022
We used BNC back in 2018 and we used them again. We’re very happy with them. The application process was as smooth as it could be. One of the reasons that we came back was because it was so streamlined and easy to deal with. It was a perfect process. People should gibe BNC a chance. They’ll be impressed.
Reviewed July 3, 2022
Working with BNC was simple. It was through email communication and the reps were responsive getting back to us quickly. We closed within 30 days. It did seem at the end that, to get the final reconciliation for the closing statement, it took them a little longer than we anticipated. But nothing prevented us from closing that day.
The rates have been fluctuating and if you lock in and the rates go down, you should be able to adjust down. But BNC didn't mention that and I doubt another lender would have either. And I, with everything going on, did not follow up or inquire about that either. Also, they told me the day before we were scheduled to close that they had submitted employment verification to my employer. I worked for a global company with more than 25,000 employees and they did not get a timely response, which, when you wait, I'm not surprised at all that an employer of that size probably had lots of requests and do not respond to them immediately. So, that was kind of a fire drill. But everything worked out.
Sources
- Federal Financial Institutions Examination Council, “ HMDA Data Publication .” Accessed Sept. 21, 2022.
- Federal Reserve Bank of St. Louis, “ 30-Year Fixed Rate Mortgage Average in the United States .” Accessed Sept. 1, 2022.
- U.S. Department of Veterans Affairs, “ Lender Statistics .” Accessed Sept. 21, 2022.
BNC National Bank Company Information
- Company Name:
- BNC National Bank
- Website:
- www.bncbank.com
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