Does Rocket Mortgage Do Auto Loans?

If you’re in the market for a new or used vehicle, you’ll inevitably have to explore financing options. With so many lenders to choose from, you may be wondering if popular mortgage lender Rocket Mortgage also provides auto loans. In this comprehensive guide, we’ll look at whether Rocket Mortgage offers auto financing and overview better auto loan alternatives to consider.

An Overview of Rocket Mortgage

Before diving into whether they provide auto loans, let’s quickly recap Rocket Mortgage and their key services. Formerly known as Quicken Loans, Rocket Mortgage is America’s largest mortgage lender. They make the process of buying a home or refinancing your mortgage simple through their online mortgage experience.

Some key facts about Rocket Mortgage:

• Provides a completely digital mortgage process
• Offers a wide range of mortgage products including conventional, FHA, VA, and Jumbo loans
• Known for speedy online approvals and closings
• Operates nationwide but based in Detroit, Michigan
• Sister brand of Rocket Homes real estate and Rocket Auto
• Part of the Rocket Companies brand family

With this background, let’s look at their capabilities regarding auto financing.

Does Rocket Mortgage Offer Auto Loans?

The simple answer is no – Rocket Mortgage does not directly provide loans for purchasing vehicles. Auto loans are not part of their current suite of lending products Their focus remains on innovating the mortgage financing process.

Rocket Mortgage is specifically a mortgage lender, not a direct auto lender. They do not originate or service auto loans. You cannot get financing for a car directly through Rocket Mortgage.

Rocket Auto for Buying Cars

Now this doesn’t mean Rocket Mortgage has no auto financing capabilities. In fact their sister brand Rocket Auto does help facilitate auto financing.

Rocket Auto provides an online car buying service that handles the entire process from start to finish. Their auto buying experts search inventory, negotiate pricing, secure financing, and even deliver vehicles to buyer’s doorsteps.

Rocket Auto has partnerships with lenders to help buyers secure auto financing. However, the loans themselves are provided by third-party lenders – not Rocket Mortgage directly

Alternative Auto Loan Options to Consider

Since Rocket Mortgage does not directly offer auto lending, what are some good alternatives for financing vehicle purchases? Here are a few top options to consider:

• Banks and credit unions: Many provide competitive auto loan rates and have local branches to work with.

• Online lenders: Companies like Lightstream offer quick online approvals for auto loans.

• Dealership financing: The convenience of one-stop shopping but rates may be higher.

• Manufacturer financing: Low-rate financing directly through auto manufacturers.

• Peer-to-peer lending: Borrow from individual investors via sites like Upstart.

• Credit cards: A short-term option but interest rates are usually high.

When exploring alternatives, here are some factors to look for:

• Low competitive interest rates and fees
• Flexible loan terms and down payment options
• Pre-approval process and rate shopping ability
• Strong customer service and borrower support

Doing thorough research is key to finding the right auto loan for your specific situation.

What to Know About Auto Loans at Rocket Mortgage

While Rocket Mortgage currently does not directly offer auto financing, here are some key things to keep in mind:

• They focus on innovating the mortgage lending experience, not auto loans.
• Rocket Auto can help facilitate financing through partnerships with lenders.
• Shop around with other banks, lenders, and credit unions for auto loan options.
• Having an existing relationship with Rocket Mortgage does not guarantee the best auto loan terms.
• Look for the lowest rates, flexible terms, and great customer service when financing a car.

The bottom line is you’ll need to look to providers beyond Rocket Mortgage for your next auto loan. But with ample competition in the auto lending space, you still have plenty of options to find affordable financing.

How Does the Auto Loan Process Work?

When you decide to move forward with an auto loan, here is an overview of what to expect from the lending process:

• Pre-approval – Many lenders allow you to get pre-approved for an auto loan using a soft credit check prior to shopping. This shows sellers your finance ability.

• Vehicle selection – With financing pre-approval, start shopping for the car you want and agree on a purchase price.

• Complete loan application – Next provide all required information like income, employment, expenses, and assets for underwriting.

• Loan approval – If approved, you’ll receive final loan terms including APR, payment amount, etc.

• Finalize contract – Review loan contract thoroughly and sign paperwork to secure your financing.

• Complete purchase – With financing set, complete the sale, take ownership of your vehicle and drive off!

While each lender has its own process, these are typical auto loan approval steps.

Auto Loan Requirements to Meet for Approval

When applying for auto loan financing, there are several key requirements you’ll need to meet for approval:

• Credit history – Most lenders require a minimum credit score in the 600s and good credit history.

• Down payment – A 20% down payment is recommended but some lenders may approve less.

• Debt-to-income ratio – Your total monthly debt payments compared to gross monthly income.

• Loan-to-value ratio – The loan amount compared to the total vehicle value.

• Proof of income – Pay stubs or tax returns to confirm your income.

• Proof of residency – Utility bills or other documents with your address.

• Proof of auto insurance – Required documentation of state minimum coverage.

Meeting these typical requirements improves your chances of auto loan approval.

Pros and Cons of Auto Loans

There are a few key advantages and disadvantages to financing your vehicle purchase with an auto loan:

Pros

• Pay off the car over time in affordable monthly payments
• Build your credit by making on-time payments
• Lower monthly costs than full cash purchase
• Take advantage of manufacturer financing incentives

Cons

• You must pay interest charges on the loan
• Loan denial is possible due to poor credit or income
• Extra fees like origination fees may add costs
• Miss payments hurt credit and lead to repossession

Looking at both the pros and cons will help you decide if an auto loan is your best option.

Alternative Ways to Buy a Car Without an Auto Loan

If you want to avoid the interest and fees of an auto loan, here are a few alternative options for financing a car purchase:

• Save up and pay 100% in cash. But few people can afford this option.

• Use funds from a home equity loan or cash-out refinance if you have sufficient home equity.

• Borrow from your 401(k) plan account, but this should be a last resort.

• Use crowdfunding platforms to create campaigns asking for donations to buy a car.

• Use peer-to-peer lending sites to obtain a personal loan at lower rates to purchase a vehicle.

• Lease instead of finance. But you won’t build equity and mileage limits apply.

While challenging, you may be able to creatively finance a car purchase without an actual auto loan if needed.

Is Rocket Mortgage the Right Option for You?

At the end of the day, while Rocket Mortgage does not directly offer auto loans, they remain one of the top national mortgage lenders. Here are a few factors to consider if you think Rocket Mortgage may be the right fit:

• You need a mortgage loan and value digital processes.
• You want fast approvals and closings when buying or refinancing.
• You prefer working with large, established national lenders.
• You value companies with innovative technology capabilities.
• You like having integrated real estate and auto services in one company.

Look at Rocket Mortgage for your mortgage needs, but explore other top lenders for your next auto loan. Investigating all your options will help you finance vehicles and homes smartly.