How Rocket Mortgage (Formerly Quicken Loans) Works

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How Rocket Mortgage (Formerly Quicken Loans) Works

Meeting a mortgage provider in person might offer some customers some piece of mind. However, the prevalence of online mortgage providers like Rocket Mortgage, the biggest home loan provider in the nation, demonstrates that many people feel completely at ease applying for a loan outside of an office.

Quicken Loans announced in May 2021 that it will officially change its name to Rocket Mortgage. Rocket Mortgage is a division of the publicly listed Rocket Companies (RKT).

Key Takeaways

  • For residential mortgages and home loan products, Rocket Mortgage is an online direct-lending platform.
  • Prior to changing its name in 2021, Rocket Mortgage was known as Quicken Loans.
  • One of the most well-known mortgage lenders in America is Rocket Mortgage, which is owned by Rocket Companies.

What Is Rocket Mortgage (Formerly Quicken Loans)?

You should be aware that not all loan originators operate in the same way whether you’re looking for a new mortgage or attempting to refinance online. Rocket Mortgage is a real lender, unlike websites like LendingTree and Zillow that function as lead generators by submitting your loan request to several mortgage companies.

You won’t be bombarded with emails from lenders vying for your business if you go with a direct lender like Rocket Mortgage. Fewer people have access to your personal information, which is appealing to consumers who value their privacy. However, you may want to try websites that send your information to many lenders at once if you’re searching for a fast method to compare rates from different lenders.

The Detroit-based corporation claims to be the largest mortgage lender in the country, closing on $351 billion in mortgages in 2021.

How Does Rocket Mortgage Compare to Traditional Loans?

Borrowers who prefer the ease of obtaining a loan from their house or even a nearby coffee shop can choose Rocket Mortgage. However, the actual loan application and closing procedures are pretty comparable to those of your local bank. You have the option to submit an entirely online loan application with Rocket Mortgage. Working with a Rocket Mortgage Home Loan Expert is an alternative for people who would rather not submit their applications online. The loan alternatives and interest rates for which you are eligible are then determined by Rocket Mortgage based on your financial data and job situation.

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The lender must examine your credit score, confirm the accuracy of your job and income details, and ensure you have enough homeowners insurance before closing the deal. It must also ask a third party to get an evaluation of the property.

Due to the expense of these actions, Rocket Mortgage mandates that applicants provide a “good faith deposit” of $400 to $750. The good news is that because the firm subtracts the deposit from your other closing charges, you may not wind up paying more overall than you would with another lender for these fees.

The Rocket brand’s focus is on simplifying the borrowing process, and the way it handles mortgage closing is no exception. Just by login into their account, customers may choose where and when to shut. You’ll probably be making payments to Rocket Mortgage after you’ve finished your house purchase since the firm claims that it handles 99% of the loans that it generates.

The firm launched Rocket Mortgage in 2015 as an all-digital platform for customers who like to manage their own experiences. When you first access the Rocket Mortgage website or mobile app, you’ll be prompted to provide financial details as well as the kind and amount of the loan you’re looking to apply for. Many customers no longer need to gather and send over pay stubs and bank statements since the corporation can get that information straight from their financial institutions.

Using the portal, you may check your approval status and ask questions regarding your loan (though you can always pick up the phone, too).Once the loan closes, you may maintain your account and amend payment details by logging onto the Rocket Mortgage website or mobile app.

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Rocket Mortgage vs. Local Bank.

Investopedia / Sabrina Jiang

Pros and Cons of Rocket Mortgage

Customers who utilize Rocket Mortgage deal only with one lender, unlike those who use internet markets like LendingTree and Credible. That has benefits and drawbacks.

You won’t be inundated with emails from lenders begging for your business, which is a bonus. Additionally, fewer people will have access to your personal information, which is a key selling point for clients who value their privacy.

On the other side, if you don’t get numerous offers, it might be difficult to determine if you’re receiving the greatest deal. Additionally, contacting many direct lenders to compare offers may result in extra paperwork and credit report inquiries.

Rocket Mortgage offers options, which is one of its benefits. The organization, which has been around since 1985, offers traditional mortgages as well as specialist goods including loans from the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) of the United States.

As a more practical substitute for conventional lenders, Rocket Mortgage surely plays a significant role in that. From your mobile device, you may use the digital service to contact a team member, check the progress of your loan, and access information on the closure.

Do homeowners who deal with a banker in another region of the nation have to forgo service? The majority of industry sources categorically state “No” as the response. For the eleventh year in a row, Rocket Mortgage won the top place in J.D. Power’s rankings of mortgage originators based on customer satisfaction in 2020. In 2021, it marginally slid to No. 2. The business is rated 4.5 out of 5 stars on the real estate website Zillow.

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Who owns Rocket Mortgage?

Owner of Rocket Mortgage (formerly Quicken Loans) is Detroit-based Rocket Companies Inc., a publicly traded corporation that trades on the NYSE under the symbol RKT. Rocket Companies also operates Rocket Loans, an internet-based personal loans firm, Rocket Auto, an automotive retail marketplace that offers centralized and virtual automobile sales assistance to online car purchase platforms, and Rocket Homes, a real estate search and referral network. Around these companies, it also owns and runs a number of technological and ad-tech platforms.

Is Rocket Mortgage the same as Quicken Loans?

In 2021, Rocket Mortgage officially replaced Quicken Loans as the company’s moniker. The Quicken Loans website is still accessible, but it refers users to the Rocket Mortgage platform for more information.

Is Rocket Mortgage a bank?

No. An exclusive provider of home loans and associated products, Rocket Mortgage is a direct lender. It doesn’t provide payment options like credit or debit cards or banking services like deposits.

The Bottom Line

Rocket Mortgage has developed a reputation as an easy option to get finance for a home purchase over the years. Even so, it doesn’t hurt to look around to make sure the interest rate is reasonable.

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