With the launch of their new Rocket Mortgage, Quicken Loans hopes to upend the mortgage industry. In our Rocket Mortgage review, find out what it is and how you can apply for a home loan in just 10 minutes.
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For many years, Quicken Loans has bragged about being the top local online mortgage broker. With 6% of all mortgages in the United States, it is one of the largest mortgage companies in the industry thanks to its straightforward application process.
This places them far behind Wells Fargo and Chase in the competition for control of the mortgage market. Not bad for an “online” broker.
Despite all of their success, Quicken Loans has never offered a fully online application process. Yes, potential borrowers started the application process online. However, just like with every other mortgage provider, a loan officer received the submitted applications and then guided the applicant through the procedure. That’s how it has always worked…until now.
Enter Rocket Mortgage, Quicken Loans’ response to the demand for entirely online transactions in the modern world. Mortgage seekers can now complete the entire loan application process without ever speaking to another person That’s a pretty amazing project that could completely alter how Americans apply for mortgages. In fact, Quicken Loans founder Dan Gilbert recently told TechCrunch that he thinks Rocket Mortgage will upend the home financing industry in a similar way to how the iPhone upended the cell phone industry. It’s difficult not to buy into his hype once you see the product.
How Rocket Mortgage Works
Rocket Mortgage is changing the game for mortgage applications. It automates the verification process, removing the requirement for you to repeatedly send a human being all of your banking information. I’ve applied for several new mortgages and refinanced a few others, so I can understand how this new procedure could be a huge time and stress saver. Sincerily, I find it hard to believe that a mortgage broker has waited this long to make this decision.
See also: How to determine a mortgage refinance’s true value.
Instant access to your bank records is impressive. But the most crucial aspect of Rocket Mortgage is its capacity to swiftly approve new loans, removing the waiting period for the borrower. Amazingly, Rocket Mortgage can approve applications in under 10 minutes, which is a major factor in why this process might be very successful.
Both the interface and the application process are easy to use and understand. Rocket Mortgage makes it simple by posing a series of questions to you, as opposed to just displaying confusing raw forms for you to fill out. How the interview proceeds based on your responses to those questions Rocket Mortgage then imports your responses to the appropriate forms, much like a contemporary tax program.
The first step in the procedure is to determine if you are purchasing a home or refinancing an existing mortgage. The process is tailored to fit that objective based on the button you choose for the next step. Rocket Mortgage will ask you to link your financial accounts to their program, borrowing from automated financial tools like Personal Capital and Betterment. This eliminates the need for you to send them hard copies of your banking information so they can check your financial statements online.
You can view a complete “real-time” itemization of your fees, interest rates, and projected payment after entering all the necessary information. You can modify the term of your loan or “buy points” to lower your monthly payments by using a straightforward set of sliders. Once you’re satisfied, click the submit button to secure your rate and submit your application for quick approval.
Rocket Mortgage Pros and Cons
We currently have no idea how the public will react to Rocket Mortgage. Despite the fact that some people may welcome the plan’s advantages, some do-it-yourselfers are prone to costly mistakes. Even if they are solely at fault, that will make some people very unhappy.
Customers might decide they want more interpersonal interaction in the future. We are talking about enormous sums of money here. However, if you’ve ever applied for a mortgage, you’ve probably prayed for the mortgage company to leave you alone at some point throughout the procedure. Therefore, I have a hunch that consumers will adore it.
It is far too early to know whether or not Quicken Loans’ huge gamble on Rocket Mortgage will pay off. Only time will tell if it truly disrupts the mortgage market as it is capable of doing. But, in this age of increasing automation and demand for more customer control, it looks like Rocket Mortgage is a solid bet to come out a winner.
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FAQ
What credit score is needed for a bank statement loan?
In general, a 620 credit score is enough to be approved for a bank statement loan, but a 700 or higher will get you a better rate and terms.
What is a bank statement mortgage loan?
A bank statement mortgage is a type of home loan in which the borrower’s income is determined using their bank statements. Tax returns and W-2s are not required for qualification with this type of alternative documentation loan.
What is the downside to Rocket Mortgage?
Cons. A credit check is necessary to receive a personalized interest rate, and this could lower your credit score. Doesn’t offer home equity loans or lines of credit. The most recent federal data show that origination costs are higher than those charged by other lenders.
What does a mortgage company look for on bank statements?
Lenders examine your bank statements when you apply for a mortgage to confirm where the money comes from and that you can be trusted with the loan amount. Lenders must make sure that borrowers have sufficient funds in their accounts to pay back the loan.