How Rocket Mortgage, Previously Known As Quicken Loans Works?
Some customers find that talking to a mortgage lender face-to-face helps ease their minds. Rocket Mortgage is the largest home loan provider in the country, but the company’s success online demonstrates that many people are fine with applying for a mortgage loan without ever setting foot in a physical branch.
To better reflect its position as a wholly owned subsidiary of the publicly traded Rocket Companies, Quicken Loans announced in May 2021 that it will be formally changing its name to Rocket Mortgage (RKT).
What Is Rocket Mortgage?
When looking for a new mortgage or attempting a refinancing online, keep in mind that not all loan originators use the same process. In contrast to “lead generators” like LendingTree and “matchmakers” like Zillow, Rocket Mortgage is a direct lender.
When you work with a direct lender like Rocket Mortgage, you won’t be flooded with emails from banks competing for your business. Customers who value their privacy will appreciate the reduced likelihood that their data will be shared with third parties. However, websites that send your information to numerous lenders at once may be useful if you want to quickly compare rates from different providers.
A corporation located in Detroit boasts that it will have originated $351 billion in mortgage loans by the end of 2021, making it the largest mortgage lender in the country.
Rocket Mortgage is perfect for those who would rather apply for a loan in the comfort of their own homes or even at their favorite coffee shop. On the other hand, the steps involved in applying for and finalizing a loan are very similar to what you would experience at a traditional bank. You can submit a loan application in its entirety on Rocket Mortgage’s website. Those who would rather not use the online application can speak with a Rocket Mortgage Home Loan Expert instead. The loan alternatives and interest rates that Rocket Mortgage offers are based on the information you provide about your income and employment history.
Loan approval is contingent upon the borrower’s credit history, employment history, and income, as well as proof of adequate homeowner’s insurance. A third-party house appraisal is also required. As a result of the financial outlay involved, Rocket Mortgage requests that all borrowers provide a “good faith deposit” of $400–$750. The deposit is applied toward your closing expenses, so you may not wind up paying more than you would with other lenders.
Pros and Cons
Rocket Mortgage customers, in contrast to those of online marketplaces like LendingTree and Credible, deal only with one lender. That has its pros and cons.
In addition, you will not be flooded with messages from financial institutions competing for your attention. Customers who value their privacy will appreciate that their data is less likely to be shared.
🏡 Home buyers: We pay 1% of your rate for a FULL year. And you could save even MORE if rates drop and you refinance with Rocket. Get started today! https://t.co/EseZbhZ6ZZ NMLS #3030 pic.twitter.com/H9CY21EIdZ
— Rocket Mortgage (@RocketMortgage) October 26, 2022
However, if you only receive one offer, it’s tough to tell if you’re getting the greatest price. Furthermore, if you approach multiple direct lenders to shop around, you can end up with more paperwork, as well as more inquiries about your credit record.
Rocket Mortgage’s flexibility is a major benefit. The organization has been around since 1985 and offers standard mortgages in addition to niche offerings including VA and FHA loans through the United States Department of Veterans Affairs and the Federal Housing Administration.
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