You’re well aware that your home could be the single most expensive purchase you ever make. Even though purchasing a home is a joyous occasion, the process can be extremely stressful.
We’re fortunate to live in a simpler era. The days of a loan officer arriving at your home with a 200-page stack of documents for you to read, absorb, and initial or sign are long gone. That’s exactly what happened to me when I bought my first home. I felt absolutely overwhelmed and out of my depth. Instead of asking for my three days of review time and a follow-up appointment with the loan officer, I felt forced to finish the review and signing procedure in one sitting. I don’t recall the documents or the verbiage; all I remember is that my eyes glazed over and that I hoped the loan officer was guiding me in the right route.
Now, digital services are surfacing to help speed and modernise the mortgage application process. Here comes Rocket Mortgage®.
So, what exactly is Rocket Mortgage?
Rocket Mortgage, formerly known as Quicken LoansSM, is establishing an online, mobile-friendly platform to take you step-by-step through the mortgage process, similar to what TurboTax® accomplished for tax returns. You can apply for a home loan from the convenience of your own home.
All 50 states have access to the service.
How does Rocket Mortgage make things easier for you?
Rocket Mortgage is known for two things: its convenience and speed. In as little as eight minutes, you can complete and approve a purchase or refinance application. Of course, before you can go to closing, you’ll need to schedule an appraisal, which, according to some Highya reviews, can be time-consuming.
People have closed loans as quickly as eight days after their mortgage application was accepted, according to Rocket Mortgage, and their average client closes their loan more than two weeks faster than the industry average.
When you get a mortgage with Rocket Mortgage, you’ll be looking at real-time industry statistics rather than a ballpark offer.
You can choose whether or not to speak with a qualified mortgage officer. They do have genuine human help available if you have any questions.
The Process of Rocket Mortgage
Rocket Mortgage collects your information (social security number, birth date, and other basic identification data) and permission (you’ll have to request a credit check) after collecting your information (social security number, birth date, and other basic identity data).
After the platform analyses your information, it suggests loan types that might be suitable for you, such as fixed and variable mortgage rates, conventional loans, jumbo loans, and government-backed loan programmes like as FHA, VA, and USDA loans.
To get started, go to the Rocket Mortgage home page and select either house buy or refinance from the drop-down menu. Following that, you’ll be asked a few basic questions about the house and yourself, such as whether you currently rent or own. You’ll be asked to create a login username and password as well. You’ll be asked to supply information about your assets and income, and you’ll be asked to provide your social security number and authorise a credit check in the final stages.
Each piece of information you provide will forward your mortgage application to the next round, leading to further questions and, eventually, a decision on approval.
Fees for Rocket Mortgages
The application for a Rocket Mortgage is free, however there are costs and fees associated with the loan.
While closing expenses vary depending on a variety of factors, you should budget for 0.5 to 3% of your purchase price in costs and fees (not including your down payment). On the Quicken Loans blog, you can discover a list of typical closing fees.
Competitors of Rocket Mortgage
Rocket Mortgage competes with all of the big and small lenders competing for your business in the mortgage sector. Quicken Loans became America’s largest mortgage lender by loan origination volume in 2018, and it still holds that position now.
However, the competition for a digital mortgage experience is far smaller. Other lenders that presently provide an online digital mortgage application include:
Guaranteed Rate® by
- SoFi®
- PennyMac®
- Bank of America® is a registered trademark of Bank of America, Inc.
- PNC®
- Improved Mortgage
- Network Capital Investments
- Rocket Mortgage testimonials
J.D. Power ranked Quicken Loans first in the nation for client satisfaction among mortgage servicers for the eighth consecutive year in 2021. In 2021, J.D. Power’s mortgage originator survey ranked it second in customer service.
Consumer reviews on the internet are likewise usually positive. On Highya, you can read recent Rocket Mortgage reviews.
Rocket Mortgage’s advantages and disadvantages
Pros
For the following types of homebuyers, Rocket Mortgage might be a suitable fit:
You feel at ease conducting business on your phone, or at the very least from your PC.
You look at online quotes and prefer to do business online.
Your earnings and assets are simple to understand and verify (traditional paycheck job, and documentable investment accounts, for example)
You want to acquire a mortgage approval so you can start looking for a house in your price range.
You’ve decided on the home you want to buy and are ready to compare rates from many lenders.
Cons
Rocket Mortgage is unlikely to be the best option for those who do not qualify for traditional mortgage loans. A self-employed candidate, for example, who must qualify based on personal finances and cash flow rather than tax returns and pay stubs. Instead of using a self-serve approach like Rocket Mortgage, this type of borrower might want to talk to a mortgage broker about a portfolio loan.
Rocket Mortgage might not be the greatest option for someone who wants or has to look into a wider range of loan possibilities, including ones that Rocket Mortgage doesn’t provide. The mortgage broker who is experienced with and has access to a wider range of loan programmes from several lenders still has a place in the industry.
A new generation of homebuyers is emerging
Because a mortgage is likely to be the most expensive financial product you ever obtain, you should shop around. Rocket Mortgage makes the process go as smoothly as possible. Have you come across a home you like while surfing the web or using a real estate app? You can open a new tab and apply right away to see if the house you saw is within your price range. Keep in mind that applying for a mortgage will have an impact on your credit score.
Rocket Mortgage, like other digital-first lenders, may make reaching a key financial milestone easier. While you may prefer personal connection with a mortgage broker or home loan expert, knowing that there is an internet option can make the mortgage process considerably less intimidating — and far more convenient — for prospective buyers.