February 14, 2019 / Holly
Rocket Mortgage by Quicken Loans is an online lending platform owned and operated by Quicken Loans, the largest mortgage lender in the United States. Rocket provides fast online applications for purchasing a new home loan or refinancing. This powerful platform taps into Quicken’s database of rates and loans to find each borrower a custom mortgage solution based on their needs.
How it Works
Rocket Mortgage is designed to make the process of applying for a mortgage as quick, smooth, and painless as possible. Anyone can apply for a purchase loan or refinance on Rocket’s online portal or mobile app. To get a pre-qualified quote, just click Purchase or Refinance and answer a few questions about yourself and your preferred home loan to see rates.
While any home loan application necessarily requires paperwork, Rocket’s application process uses automation wherever possible to save you time. Applicants may automatically upload financial information from Rocket’s large network of banking and financial partners. One thing worth noting: the automated documentation process works best if you’re in full-time work: self-employed borrowers may need to speak to one of Rocket’s home loan experts to verify some information.
Most online mortgage lenders save the borrower time, but Rocket’s system goes one step further by verifying your information automatically. As innovation website TechCrunch has noted, The service also verifies information, then provides a conditional approval as valid as something a loan officer would issue.
Overall, Rocket beats other online and bricks-and-mortar lenders for speed – from application through to approval and funding.
Pros and Cons
- Completely online applications
- Saves time by verifying applicant’s information automatically
- Custom mortgages to meet each borrower’s needs
- No HELs or HELOCs
- No physical branches
As explained above, the strength of Rocket Mortgage’s product is its speed. While other online lenders can save you time, Rocket Mortgage goes one step further by automating most of the application process. Rocket’s sophisticated AI-powered system processes the applicant’s information to find the best fit for their needs from parent company Quicken Loans’ rates and products. The whole process is quick, easy, and online. You can even apply from your phone, thanks to Rocket’s sleek mobile app.
There aren’t really any major reasons to avoid Rocket Mortgage unless you just don’t like applying for financial products on the internet. If you’re the type of person who prefers to speak to a mortgage advisor face-to-face, then we recommend looking elsewhere. Many top mortgage lenders do still have physical branches around the country, including Rocket’s parent company Quicken Loans.
Types of Loans
Rocket Mortgage offers a wide variety of purchase and refinance loans, with the only notable omission being home equity loans and lines of credit. Residents in all 50 states are eligible for its loans and refinancing options.
Here are some of the mortgage products you’ll find at Rocket Mortgage:
- Fixed-rate mortgages
- Adjustable rate mortgages (ARMs)
- Jumbo loans
- Cash-out refinance
- FHA loans
- VA loans
- USDA loans
Rocket Mortgage offers most of the features found at parent company Quicken Loans. In addition, it offers all the benefits of being able to apply for a loan quickly and easily online. It is most suited to people who have begun their home search, have a home in mind and want to make an offer, or who have already signed a purchase agreement. It isn’t as suited to people who are only planning to buy their home six months or more from now.
Here are some of the features of a Rocket Mortgage loan:
- Minimum credit score of 580 or above.
- Minimum down payment of 20% for a conventional loan or 3-10% for FHA loans.
- Like with Quicken Loans, origination fees start from around 0.50% of the loan amount – which is low compared to other mortgage lenders. Some government-backed mortgages like FHA, VA, and USDA can carry higher origination fees.
- Other closing fees such as title and appraisal fees apply.
- Borrowers are assessed on credit score and debt-to-income ratio: other information isn’t considered as important.
- Most borrowers can opt to have their financial information sent to Rocket Mortgage automatically, reducing the time it takes to complete the application process.
- All loans are underwritten by Quicken Loans, the largest mortgage lender in the United States.
Rates and Terms
Rocket Mortgage taps into owner Quicken Loans’ rates to find the best rates for your credit score and financial status. It offers a choice of fixed-rate loans and adjustable-rate mortgages across its mortgage products. Although Rocket doesn’t have the lowest rates in the market, it does offer competitive rates to borrowers with a solid credit history.
At time of writing, Rocket was offering as low as 4.342% APR for a 15-year fixed mortgage and 4.668% APR for a 30-year fixed mortgage. Rocket Mortgage offers a choice of 15-year to 30-year terms for fixed-rate loans as well as adjustable loans with a fixed introductory period of five years.
Contact Figure Lending
Although Rocket is an online lender, it does offer customer support by phone. Here are the contact details:
- Phone: 888-452-8179
- Live Chat: On the Rocket Mortgage Website
- Address: Quicken Loans, 1050 Woodward Ave Detroit, MI 48226
One thing makes Rocket Mortgage stand out from all other mortgage lenders: speed. Some lenders might be able to offer you better rates, others might offer great customer service, but few come close to matching Rocket for speed. This might seem like a small thing, but speed is important in the mortgage industry. Getting stuck with a time-consuming mortgage application and not even knowing whether you’ll get approved can be costly in terms of both time and energy. With Rocket, you know where you stand within a few minutes of applying and you can save time by having all your documentation verified automatically.