Monday, September 19, 2022

Is Quicken Loans Rocket Mortgage

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How To Buy a Home Using Rocket Mortgage | Quicken Loans
CFPB Complaints, 20214
0.35 829/1,000

Federal regulators at the Consumer Financial Protection Bureau maintain a public, online database of consumer complaints against mortgage lenders. And in it, borrowers filed over 300 complaints against Rocket Mortgage in 2021. Still, this figure represents a relatively small number of negative experiences compared to the amount of home purchase and home refinance loans it underwrote that year.

Rocket Mortgage Review: Full Approval In Just 8 Minutes

Do you know how long it takes for the space shuttle to reach orbit? Apparently it takes just eight minutes, the same amount of time it will take borrowers to get a full mortgage approval online via Rocket Mortgage.

At least, this is the powerful claim the company is touting via a new online mortgage approval engine that promises to shake up the age-old, and very stale home loan process. They created quite a stir during their Super Bowl ad as well.

The company launched the end-to-end online product in late 2015 in what appeared to be a direct response to the many online mortgage startups now in existence.

Essentially, parent company Quicken Loans didnt want to get left behind, and in fact, wanted to be a leader in the new digital mortgage world. So far, it seems to be working.

Rocket Mortgage Quickly Took Over Its Parent Company

  • Founder Dan Gilbert started a regional branch-based mortgage broker in metro Detroit called Rock Financial in 1985
  • Later changed the name to RockLoans.com in 1999 and sold the company to Intuit, the owner of Quickbooks and TurboTax
  • They changed the company name to Quicken Loans before he eventually bought it back and retained the new name
  • Rocket Mortgage was launched in 2015 and quickly overtook its parent company in terms of brand popularity, which explains the move

Rocket Mortgage was only launched in late 2015, but since then it has become a household name for both prospective home buyers and existing homeowners in need of a mortgage refinance.

It got a big boost from its controversial 2016 Super Bowl ad in which it said customers could push a button to get a mortgage.

That conjured up some bad memories of the not-too-distant subprime debacle, though it was more a marketing gimmick than a reality.

Ultimately, borrowers still had to submit their loan to the underwriting department and get it approved.

However, this was the first time a consumer could go from application to closing on their own, without dealing with a human being .

Rocket Mortgage was simply a new technology, namely a fully-digital mortgage experience that lived entirely online, an initiative founder Dan Gilbert had always pushed since the Internets inception.

And now that the company is the #1 mortgage lender in America by a wide margin, it appears theyre finally okay with releasing the Quicken name.

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Rocket Mortgage Review 2022

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandheres how we make money.

Is Rocket Mortgage Trustworthy

Quicken Loans launches new Rocket Mortgage logo

Rocket Mortgage ranked as the top lender for customer satisfaction from J.D. Power for 11 consecutive years, and it ranked as No. 2 in 2021. It also has an A+ rating from the Better Business Bureau. The BBB measures trustworthiness based on response to customer complaints, honesty in advertising, and transparency about business practices.

In 2019, the US Justice Department required Rocket Mortgage’s parent company Quicken Loans to pay $32.5 million for alleged mortgage fraud. The Justice Department claimed Quicken Loans approved mortgage applications it shouldn’t have. Although Quicken Loans paid the settlement, the company never admitted to mortgage fraud.

If the mortgage fraud scandal makes you nervous, you may decide to go with another lender. But considering its great customer satisfaction and trustworthiness scores, you might still feel comfortable using Rocket Mortgage.

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Whats The Process For Getting A Mortgage With Rocket Mortgage

The first step is setting up an account on Rocket Mortgages website. After that, youll answer a number of questions about where you live, where you want to buy, who will be on the loan with you and your financial information. This includes employment history and salary. Your assets and income are required as well as your Social Security number for a credit check. Rocket Mortgage integrates with most banks so youll be able to log in to your bank account directly through the system if you want to verify your assets using the quickest method available.

When youve finished entering the required information, youll see a countdown. After a few minutes or so, Rocket Mortgage will display which loans you qualify for. This could include fixed-rate or adjustable-rate mortgages, or specialized loans such as VA or FHA. Theres a slider bar that can help you see what happens if you change the loan term, interest rate or closing costs.

If you find an option that suits your needs, you can lock your rate in and send your application for approval. Rocket advertises that youll find out if youre approved within minutes. If you are, you can print out an approval letter to help prove your intent to purchase to a realtor. When you have a purchase contract to buy a home, youll work with Rocket Mortgage to finalize the loan. That includes setting up a closing date and moving forward with the house-centric portion of the home-buying process, such as the appraisal and home inspection.

What Kind Of Mortgage Can I Get With Rocket Mortgage

You can generally apply for all the same loans offered by Quicken through Rocket Mortgages online application system. Therefore, you have plenty of options whether youre looking for a conventional loan, or something more specialized for your situation. Your loan options include:

Fixed-rate mortgage: This popular mortgage type locks in your interest rate for the entire life of the loan. This means your monthly principal and interest payment stays the same, which many find useful for budgeting and planning. You will find the standard 15-year and 30-year fixed-rate mortgage options. This is also the type of loan YOURgage uses, but with adjustable terms.

Adjustable-rate mortgage: This type of mortgage, the ARM, does just what the name suggests: adjusts the interest rate. When you reach the end of your initial fixed-rate term, your interest will go up or down once per year. Youll find five-year or seven-year ARMs at Quicken and Rocket.

Federal Housing Administration loan: An FHA loan helps those with limited down payment funds and lower credit scores qualify for a home loan. Quicken states that credit scores as low as 580 may qualify for a loan, but it will depend on your situation. Your options include 30-, 25-, 20- and 15-year fixed-rate terms as well as five-year ARMs. If you qualify, you can buy a home with as little as 3.5% down.

Refinance: Rocket Mortgage has refinancing options for a conventional refinance.

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How Rocket Mortgage Stacks Up

Quicken Loans, which powers Rocket Mortgage, is the overall largest online retail mortgage lender. With that size comes a number of mortgage and refinance options that help homebuyers with low credit scores or low income. Thats advantageous if youre looking for a company with a wide range of loan options. You can also find specialized loans such as VA and FHA, which are great options for certain customers.

Compared to its online competitors, such as Better.com, a mortgage startup, Rocket Mortgage has some of the most diverse offerings. For example, Better.com, while offering online preapproval and loan applications, doesnt offer VA or USDA loans. That means if you dont have a excellent credit score, or are looking to use government loan options, youre out of luck.

However, Rocket Mortgage doesnt look as good when compared to a full retail bank, such as Truist or PNC . These banks offer checking, savings and retirement products alongside mortgages, which is attractive if youre trying to keep all your finances in one spot.

Additionally, many big banks include home equity loans and home equity lines of credit as customer options, which Rocket Mortgage and Quicken Loans doesnt offer. Finally, although a representative stated that Quicken Loans is starting to offer USDA loans, you wont find that option on Rocket Mortgage. Rural homebuyers will have to look elsewhere for that product offering.

What Can You Do Online With Rocket Mortgage

How To Refinance a Home Using Rocket Mortgage | Quicken Loans

You can do everything online with Rocket Mortgage thats the basis behind its creation. Back in 2015 during its release, Quicken explained, were obsessed with finding a better way to help our clients get a mortgage. Thats why we build Rocket Mortgage, a completely online, self-service mortgage experience. That said, you can still talk to a home loan expert by phone or via online chat at any time in the process.

The online process starts with the application for initial mortgage approval, which as advertised, takes minutes. After that, you can start the full application process and home-buying process which takes longer. How long from approval to mortgage close depends on your financial situation as well as home-related factors such as the appraisal.

You can provide all the necessary financial documentation through the online interface called Rocket Mortgage . Through this portal, you can access the status of your loan 24/7. For updates on the go, you can download the app for Android or Apple users.

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What Kind Of Homes Can I Use Rocket Mortgage To Get A Loan For

Most people use Rocket Mortgage® to buy or refinance:

We dont provide mortgages for manufactured or mobile homes. We encourage you to see if you can get approved for a single-family home.

We do provide mortgages for other less common property types. If you want to buy or refinance something not mentioned above, reach out to a Home Loan Expert.

Rocket Mortgage Rates And Fees

One of the most important considerations when choosing a mortgage lender is understanding what the loan will cost. Because in 2020, the most recent year for which data is available, Quicken Loans was still the lender behind Rocket Mortgage, our scoring reflects Quicken Loans rates and fees.

In order to provide consumers with a general sense of what a lender might charge, NerdWallet scores lenders on two factors regarding fees and mortgage rates, based on the most recently available Home Mortgage Disclosure Act data:

  • Quicken Loans, the lender behind Rocket Mortgage in 2020, earns 1 of 5 stars for average origination fee.

  • Quicken Loans earns 3 of 5 stars for offered mortgage rates compared with the best available rates on comparable loans.

Borrowers should consider the balance between lender fees and mortgage rates. While its 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.

Also Check: Can You Refinance Your Loan With The Same Bank

Compare To These Lenders

  • Average mortgage rates and feessourced fromself-reported datamortgage lenders are required to file under the Home Mortgage Disclosure Act. Rates and fees shown reflect the previous years data and may not align with todays mortgage rates
  • Monthly principal and interest paymentscalculated using TheMortgageReports.commortgage calculator. Payments shown are based on a $200,000 loan amount and assume a very good credit score. Property taxes and homeowners insurance are not included. Your own monthly payment will vary
  • Number of mortgage originations for the previous yearsourced fromself-reported datamortgage lenders are required to file under the Home Mortgage Disclosure Act
  • CFPB Complaintsreflect the number of mortgage origination or closing-related complaints filed with theConsumer Financial Protection Bureaufor the previous year
  • Complaints per 1000 mortgagesreflect the number of official complaints filed against a lender with the CFPB for the previous year, compared to the lenders total number of mortgage originations for the previous year
  • JD Power Ratingreflects the companys customer satisfaction score according to JD Powers most recent Primary Mortgage Origination Satisfaction Study. Survey respondents score their lenders in four areas: application/approval process, communication, loan closing, and loan offerings
  • How Can I Use Rocket Mortgage To Get A Preapproval Letter

    Rocket Mortgage

    Rocket Mortgage® gives you a Prequalified Approval Letter, whichis an initial review of the basic financial information you shared. Similar to apreapprovalletter, this provides an estimate of how much home you can afford, but does not verify your financial details or credit history.

    After you get a Prequalified Approval Letter, the next step is to maximize your buying power with aVerified Approval Letter. Weverify your income, assets and credit up front,which can help your offer stand out.

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    Applying For A Home Equity Loan

    When you apply for a home equity loan, be prepared to show plenty of paperwork. Lenders need proof that your income is high enough and your debt is low enough that you can afford your monthly payment.

    Your lender might ask for copies of your most recent bank account statements, paycheck stubs, tax returns and W-2 forms. They might also ask for your most recent credit card statements.

    Lenders will also review your three credit reports, each maintained by the national credit bureaus of Experian®, Equifax and TransUnion®, and pull your three-digit FICO® credit score.

    The higher your score, the more likely you are to get approved and the lower your interest rate will be. Most lenders consider a FICO® Score of 740 or higher to be particularly strong.

    Who Pays For Closing Cost In California

    There is no state or county law that dictates who pays which closing costs in California, between the home buyer and seller. It usually comes down to two things local customs and negotiations. Even so, there are certain closing costs that are usually paid by the buyer, and some that are typically paid by the seller.

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    Rocket Vs Quicken: The Same But Different

    Quicken Loans is the highest-volume lender in the U.S. when it comes to the total number of loans, originating over 541,000 in 2019, the most recent year for which statistics are available.

    The company launched Rocket Mortgage in 2015 to serve as its online retail lending platform, according to CEO Bill Emerson in a press release in November 2015. Quicken Loans has continued to operate a separate company website, but consumer applications are usually routed through the Rocket Mortgage platform, which is available online or via mobile app.

    You can talk to a Rocket Mortgage agent on the phone if you prefer not to apply online.

    Is Rocket Mortgage The Best Lender For You

    Quicken Loans Review: Is Rocket Mortgage Really That Easy?

    Rocket Mortgage is one of the most popular mortgage companies in the U.S. Thats probably because it has stellar customer service reviews and a whole host of great online tools.

    In other words, if you want to get a mortgage quickly and easily, Rocket is worth a look.

    Just keep in mind that rates from any single company arent competitive for everyone. Compare your Loan Estimate from Rocket Mortgage with a few other companies to be sure youre getting the best possible deal.

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    Import Documentation Online With Rocket Mortgage

    From there, youll also be able to lock in your mortgage rate so its guaranteed. Then simply complete a to do list by a certain date and youll be all set.

    Rocket Mortgage also allows you to import asset, income, and property information online thanks to numerous partners and databases throughout the country.

    It sounds kind of like Turbo Tax where you can sign in to certain accounts and have the information imported directly into the mortgage application.

    This should reduce the headaches of incomplete paperwork and missing pages that often need to be re-sent over and over again.

    Youll also be able to view all your loan details and documentation online or on your mobile device to keep track of your progress.

    Rocket Mortgage Interest Rates

    When you visit the Rocket Mortgage website, select “Rates” on its menu. It shows you interest rates and APRs on 30-year and 15-year fixed conforming mortgages, 30-year VA mortgages, and 30-year FHA mortgages. It also compares today’s rates with rates yesterday and one year ago.

    You can read the assumptions for these rates on the website. For example, the 30-year rates shown are for $200,000 loan amounts and cover 1.375 points at closing.

    Unlike with some online lenders, you can’t plug in your information to see a more personalized rate on the site. You’ll need to create an account before you can do this.

    Right now, the 30-year and 15-year conforming loan rates on Rocket Mortgage’s website are a little higher than the average rates listed on the Federal Reserve’s website.

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    Quick Fast Mortgage Application Process Online

    Yes, you can get an online mortgage pre-approval almost instantly. Credit Score, income verification, credit history, and debt to income ratio are not reviewed. This does stop the hassle of talking to your banker, filling out an application with more questions and financial documents needed.

    At the same time, the reward can be getting a loan pre-approval instantly. The drawback is the quality of the application.

    Online mortgage lenders ask basic questions to get their application in the system in hopes that the information you provided is correct. A great example is Rocket Mortgages question on whats your household income? Their questionnaire doesnt ask if its pre-tax, cash, commission, or salary. All of these income questions matter when it comes to receiving the best interest rates for your home loan.

    Online home loan applications can be smooth through the transaction of buying and selling a home. The problem arises when hiccups come. Most real estate transactions have some type of issue. Issues with real estate transactions can include missing financial documents.

    Do you have your taxes filed? Are your pay stubs correct? Can you verify large deposits into your bank account? Are you commission-based?

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