Thursday, May 16, 2024

Is Rocket Mortgage The Same As Quicken Loans

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What Are The Requirements For Getting A Loan With Rocket Mortgage

Quicken Loans Review: Is Rocket Mortgage Really That Easy?

We look for certain things when we evaluate a loan application. While the approval process is unique to each person, here are some general guidelines.

Ideally, your monthly expenses shouldnt be more than 45% of what you earn each month. For a better understanding, read Debt-To-Income Ratio : What Is It And How Is It Calculated?

When you purchase or refinance a home, we need to trace your assets. We also like to see a two-year work history with proof of current, stable income.

There are certain circumstances in which a credit score of 580 is enough, but typically you need a credit score of 620. Check your credit score through our sister company, Rocket Homes®. Our free Fresh Start program can help you boost your credit just call 769-6133.

Whether youre purchasing or refinancing, youll typically need an appraisal. We work with an independent, third-party appraisal management company to order the appraisal for you.

You Dont Want To Borrow A Lot Of Money

Generally, a personal loan is best if you want to borrow money in smaller amounts. In fact, a personal loan is often your only option if youre looking to borrow a smaller sum . However, if you want a higher loan amount with a faster approval process, consider a cash-out refinance. Its a good way to get a quick loan if youre a homeowner with some accrued equity.

Rocket Mortgage Wants To Be The Cool And Easy Mortgage

  • Rocket Mortgage is essentially a brand-name home loan that exudes speed and simplicity
  • The company relies on the latest technology to target Millennials and Generation Z home buyers and homeowners
  • Those who prefer to use smartphones and texts to get things done as opposed to speaking to humans
  • They compete with other disruptors in the space that are trying to accomplish the same thing with so-called digital mortgages

The nascent space is still in its infancy, but there are already multiple players Quicken needs to keep its eye on, including the likes of Better Mortgage, Lenda, Sindeo, SoFi, LendingHome, and many others, some of which are popular with Millennials thanks to offerings like student loan refinances and the like.

Most of the startups above consider themselves online mortgage lenders that cut out the middleman , while promising to make home buying or refinancing a lot easier than it has traditionally been.

Quicken seems to have taken notice with their latest move, referring to themselves in the press release as the nations leading FinTech mortgage lender.

Short for financial technology, FinTech is the latest buzzword taking Silicon Valley by storm. It basically describes any financial company harnessing the power of the Internet to conduct business more efficiently.

Quicken Loans claims it took more than 500 Detroit-based developers and various other employees some three years to completely redesign the highly complex mortgage process.

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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 partnersandhere’s how we make money.

Why Should I Use Rocket Mortgage

Quicken Loans Rocket Mortgage TV Spot,

Rocket Mortgage® lets you work at your own pace, while providing award-winning customer service and expert advice. It lets you apply online, anytime, at your convenience which means its there when you need a fast approval to buy a house or a way to lock your rate when rates drop.

If youre buying a home, heres when we recommend using Rocket Mortgage®:

  • Youre just starting your home search.
  • You have a home in mind and want to make an offer.
  • You already have a signed purchase agreement.

If youre refinancing, heres when you can use Rocket Mortgage®:

  • You need to get cash out of your home.
  • You want to lower your monthly payment.
  • Youre interested in shortening your loan term.

If youre just trying to find out what you can afford, we recommend using our Home Affordability Tool.

If youre thinking about refinancing and are just looking for payment estimates, check out our Refinance Calculator.

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Rocket Mortgage Rate Transparency

Rocket Mortgage offers sample rates for fixed-rate purchase and refinance loans on its homepage, and youll find more extensive rate information if you head to the rates page. There, youll find their most current interest rates and APR, as well as the points youd need to buy upfront to get that rate and APR combo, for 30- and 15-year fixed rate home loans as well as 30-year FHA and VA loans.

You can also click view legal disclosures to see the assumptions Rocket makes to determine those rates viewing sample rates isnt the same as getting personalized rates.

Even when rates are low, lenders often work the assumptions to make their rates look just a bit lower and Rocket Mortgage is no exception. For example, a lender can show a lower interest rate by adding in discount points. The more points paid for, the lower the rate.

On the day we checked, Rockets interest rate page showed points ranging from 2 to 2.125 built into the interest rates. Thats a little high, considering that, overall, borrowers have paid an average of 0.70 points on loans in the past 12 months, according to the Federal Reserve.

For rates customized to your situation, youll have to begin the process of applying online with Rocket Mortgage. Even qualified preapproval includes a hard credit inquiry, so its important to be sure youre serious about considering Rocket as a lender before applying.

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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.

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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 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.

Who Owns Rocket Mortgage

How To Refinance a Home Using Rocket Mortgage | Quicken Loans

Rocket Mortgage is owned by Detroit-based Rocket Companies Inc., a public company trading on the New York Stock Exchange under the ticker RKT. In addition to its home loan business, Rocket Companies owns Rocket Homes, a real estate search and referral platform Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to online car purchasing platforms and Rocket Loans, an online-based personal loans business. It also owns and operates several technology and ad-tech platforms around these businesses.

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Whos Quicken Loans For

Quicken Loans is for busy people who dont want to deal with in-person meetings about their mortgage. You can still get a personal experience by calling or by chatting with a representative, but you dont have to take time out of your day to drive somewhere and meet on someone elses time.

Quicken Loans is also one of the best lenders for first time home buyers. Why? It offers extensive educational materials on its website. You can play with its calculators. You can review its guides to refinancing or buying a home. You can also review its blog posts on just about everything related to buying a home.

If you already own a home, Quicken Loans is a great choice for you, too. It offers educational materials about refinancing. You may be able to refinance to a lower mortgage rate, a shorter mortgage term or to cash out money from your home. If youre not sure which option is best for you, chat with an expert by phone or online.

Average Days To Close A Loan

Closing a loan is the process of approving and funding your mortgage. It starts once you complete your formal application. Quicken Loans® takes an average of 30 days to close a loan.

You can speed up the closing process by answering any questions the underwriters ask promptly. Underwriters are the people who examine your loan application and make sure the information is accurate. They want to be sure you can afford the loan. They may also ask for additional documents. Provide these as quickly as you can to keep the process moving.

Youll also need to get a home inspection and provide proof of homeowners insurance. Take care of these as quickly as possible. Once your mortgage is approved, youll set a date for closing. This is a meeting where you sign all the paperwork involved with your mortgage. You can ask for the closing documents in advance so you can review them before your closing meeting.

If you have questions about anything during the process, dont hesitate to ask. Quicken Loans is known for its service, so it will be responsive. No question is silly, and its always better to ask about anything you dont understand.

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How Are Rocket Mortgage’s Rates Compared To The National Average

Rocket Mortgage rates trend about the same or a little higher than the national average. The day we checked, Rocket Mortgage’s advertised rate on a 30-year fixed-rate mortgage was just 7/10ths higher than Freddie Mac’s published national average rate. But you might pay more at Rocket Mortgage to get its lowest rate.

Nationally, mortgage lenders charge an average of 0.7 mortgage discount points for the lowest rate, according to data from Freddie Mac. Rocket Mortgage charges more than two points. The cost of one point equals 1% of your loan amount. So if you wanted to borrow $200,000, two points would cost $4,000. If you’re comparing total loan costs, the number you want to look at when you compare loans is the APR or annual percentage rate. That number will be a little higher than the interest rate and reflects the true cost of the loan.

Mortgage Loan Products At Rocket Mortgage

Quicken Loans launches new Rocket Mortgage logo

Rocket Mortgage can offer the following loan options:

  • Fixed-rate mortgages Most people choose a 30-year fixed-rate loan. But with Rockets YOURGage program, you can choose a term anywhere from 8 to 30 years
  • Adjustable-rate mortgages These can be more affordable than fixed-rate mortgages at first, but they come with the risk of higher rates later. You can fix your rate for a period of 5, 7, or 10 years, after which it will move up and down with the market
  • FHA loans Backed by the Federal Housing Administration, FHA loans are great for home buyers with imperfect credit and low down payments . But they come with high monthly mortgage insurance payments
  • VA loans Eligible service members, veterans, and surviving spouses can buy homes with no down payment, lower credit requirements, and no continuing mortgage insurance payments
  • Jumbo loans Borrow up to $3 million, if Fannie Mae and Freddie Macs conforming loan caps are cramping your style

The big things Rocket doesnt offer are construction loans, home equity loans, and USDA-backed loans.

USDA loans help rural home buyers and require no down payment. If youre interested in this type of mortgage, youll need to check out some other lenders.

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Rocket Mortgage History Profile And Corporate Video

Online mortgage lender Rocket Mortgage offers residential mortgages in all 50 states, providing such financing options as fixed- and adjustable-rate mortgages, reverse mortgages and refinancing. Quicken Loans generates loan production from web centers located in Detroit, Cleveland and Scottsdale, Arizona. The company also operates a centralized loan processing facility in Detroit, as well as its San Diego-based One Reverse Mortgage unit. The company closed a record $70 billion of volume across all 50 states in 2012.Rock Holdings, which is led by billionaire founder and chairman Dan Gilbert, owns Quicken Loans.

Quicken Loans Changes Name To Rocket Mortgage

In an effort to perhaps streamline its brand and create a little less consumer confusion, Quicken Loans announced today that it is officially changed its name to Rocket Mortgage.

Going forward, you wont see the old Rocket Mortgage by Quicken Loans blurb, and instead will just see Rocket Mortgage, which has clearly become the hot brand in home loans.

The nations number one mortgage lender said the change will bring alignment to the Rocket brand, while making clear to home buyers that technology is the core tenet of Rocket Companies, Inc.

From searching for a home to mortgage closing, the Rocket brand will feature, whether its sister company Rocket Homes or Amrock Title, or the companys wholesale lender Rocket Pro TPO.

At the same time, the Quicken Loans brand is essentially being retired after about 20 years in existence.

In case youre wondering, the name originally came from Intuit Inc., the company behind TurboTax and QuickBooks, after Rock Financial founder Dan Gilbert sold to them in 1999.

He later bought back the company and kept the name, though I believe they had to pay naming rights to keep it.

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How Does Rocket Mortgage Compare To Traditional Loans

Rocket Mortgage is tailored toward borrowers who prefer the convenience of getting a loan from their home or even their local coffee shop. However, the actual process of applying for and closing on a loan are actually quite similar to that of your neighborhood bank. With Rocket Mortgage, you have the option to apply for a loan completely online. For those who do not prefer to apply online, they also have the option to work with a Rocket Mortgage Home Loan Expert. Rocket Mortgage then uses your financial information and employment status to determine the loan options and rates for which you qualify.

Before you close the loan, the company has to check your , as well as verify that your income and employment information are correct and that you have adequate homeowners insurance. It also has to order a home appraisal from a third party.

These steps cost money, which is why Rocket Mortgage requires that borrowers make a good faith deposit of $400 to $750. The good news is that the company deducts the deposit from your other closing costs, so in the end, you may not pay more for these fees than you would with other lenders.

You can use the platform to see whether youre approved and to ask questions about your loan . You can also log in to the Rocket Mortgage website or app to manage your account and update payment information once you close on the loan.

Investopedia / Sabrina Jiang

Should I Use Rocket Mortgage Instead Of Another Lender

Story from Rocket Mortgage by Quicken Loans | Getting Advice on a Dream Home
  • If speed and convenience are your top priorities
  • Rocket Mortgage might be just the ticket
  • But know that putting in a little time to shop around for a home loan
  • Could save you a lot of money and provide a great ROI, even if it takes a tad longer

All in all, it appears that Quicken wants to keep up with all the tech-minded debutants entering the mortgage space, while also appealing to a new generation that demands instant gratification and doesnt want to talk to anyone, ever.

Of course, I think there will always be a place for traditional face-to-face correspondence in the mortgage world seeing how important and complex it is for most folks.

And like other tech-based solutions, Quicken Loans Rocket Mortgage will only be successful if borrowers answers are honest and accurate, much like a standard home loan application.

At the end of the day, its recommended that you still shop around as opposed to taking the easiest route to a mortgage. While the application process might be faster, savings thousands for even a few hours more work seems like a no-brainer.

Personally, Id rather take my time and pay less each month for the next 360 months, but thats just me.

Ultimately, while convenience is great, a lower mortgage rate with fewer fees is much better, even if it takes a little more time and legwork.

And lots of other lenders are catching up technology-wise, so you might be able to get a similar experience and snag a lower mortgage payment at the same time.

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