Meeting a mortgage lender in person can give some customers some peace of mind. However, the popularity of online mortgage providers like Rocket Mortgage, the largest home loan provider in the nation, demonstrates that many people are completely at ease applying for a loan outside of an office.
Quicken Loans announced in May 2021 that it would officially change its name to Rocket Mortgage. Rocket Mortgage is a division of the publicly traded Rocket Companies (RKT).
What Is Rocket Mortgage (Formerly Quicken Loans)?
You should be aware that not all loan originators operate in the same manner if you’re searching for a new mortgage or trying to refinance online. Rocket Mortgage is a real lender, as opposed to LendingTree and Zillow, which act as lead generators by sending your loan request to numerous mortgage providers.
You won’t get a barrage of emails from lenders vying for your business if you use a direct lender like Rocket Mortgage. Fewer people have access to your personal information, which is very appealing to customers who value their privacy. However, you might want to try websites that send your information to numerous lenders at once if you’re looking for a quick way to compare rates from different lenders.
The Detroit-based business claims to be the top mortgage lender in the country, closing on $351 billion in mortgage loans in 2021.
How Does Rocket Mortgage Compare to Traditional Loans?
Borrowers who prefer the convenience of applying for a loan from their home or even their neighborhood coffee shop should consider Rocket Mortgage. However, the actual loan application and closing process is quite similar to that of your local bank. You have the choice to submit an entirely online loan application with Rocket Mortgage. Working with a Rocket Mortgage Home Loan Expert is an option for those who do not prefer to apply online. Rocket Mortgage then determines the loan options and rates for which you are eligible based on your financial information and employment status.
The lender must check your credit score, confirm the accuracy of your income and employment information, and confirm that you have enough homeowners insurance before finalizing the loan. Additionally, it must request a third party appraise the property.
Rocket Mortgage demands that borrowers put down a “good faith deposit” of $400 to $750 because taking these actions costs money. The good news is that because the firm subtracts the deposit from your other closing costs, you might not ultimately pay more for these costs than you would with other lenders.
The Rocket brand’s mission is to simplify the borrowing process, and its approach to mortgage closing is no different. By logging into their account, users can choose where they want to close and when. You’ll probably be making payments to Rocket Mortgage once you’ve finished your home purchase because the company asserts that it services 99% of the loans that it originates.
Customers who enjoy taking control of their own experiences are likely to choose to use Rocket Mortgage, an entirely digital platform that the business unveiled in 2015. When you first access the Rocket Mortgage website or mobile app, you’ll be prompted to enter financial details as well as the type and amount of the loan you’re looking to apply for. The company can retrieve pay stubs and bank statements for many customers directly from their financial institutions, negating the need for them to gather and send those documents.
Although you can always pick up the phone, you can use the platform to see if you’re approved and to ask questions about your loan. Once the loan is closed, you can access your account through the Rocket Mortgage website or mobile app and update your payment details.
Pros and Cons of Rocket Mortgage
Customers who use Rocket Mortgage only deal with one lender, unlike those who use online marketplaces like LendingTree and Credible. That has its pros and cons.
You won’t be inundated with emails from lenders begging for your business, which is a plus. And fewer people will have access to your personal information, which is a big draw for customers who value their privacy.
On the other hand, if you don’t receive multiple bids, it can be difficult to determine whether you’re getting the best deal. Additionally, contacting multiple direct lenders to compare offers may result in more paperwork and credit report inquiries.
One advantage that Rocket Mortgage provides is choice. The business, which has been around since 1985, offers conventional mortgages as well as unique products like U S. Loans from the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA)
Rocket Mortgage positions itself as a more practical substitute for conventional lenders, and it undoubtedly plays a significant role in that. From your mobile device, you can use the digital service to contact a team member, check the status of your loan, and view information about the closing.
Most industry sources agree that the answer to the question “Do homeowners have to forgo service when working with a banker in another part of the country” is categorically “No.” ” J. D. For the eleventh year in a row, Rocket Mortgage won the top spot in Power’s rankings of mortgage originators based on customer satisfaction in 2020. It slipped slightly to the No. 2 spot in 2021. The company also receives 4. 5 stars out of 5 on real estate site Zillow.
Who owns Rocket Mortgage?
Rocket Companies Inc., based in Detroit, is the owner of Rocket Mortgage (formerly Quicken Loans). , a publicly traded company with the ticker RKT that trades on the NYSE Rocket Companies also owns Rocket Loans, an online personal loans business, Rocket Auto, an automotive retail marketplace that offers centralized and virtual car sales support to online car purchasing platforms, and Rocket Homes, a real estate search and referral platform. Around these businesses, it also owns and runs a number of technology and ad-tech platforms.
Is Rocket Mortgage the same as Quicken Loans?
Yes, Rocket Mortgage officially replaced Quicken Loans as the company’s name in 2021. While still operational, the Quicken Loans website now directs visitors to the Rocket Mortgage platform.
Is Rocket Mortgage a bank?
No. A direct lender, Rocket Mortgage only offers mortgages and related products. It doesn’t provide payment options like credit or debit cards or banking services like deposits.
The Bottom Line
Rocket Mortgage has established a reputation as a practical means of obtaining mortgage financing over the years. However, it doesn’t hurt to shop around to make sure you’re getting a competitive interest rate. Article Sources Investopedia mandates that authors cite original sources to back up their arguments. White papers, official data, original reporting, and interviews with industry professionals are some of these. When necessary, we also cite original research from other respected publishers. On our website, you can read more about the guidelines we adhere to when creating truthful, unbiased content.
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Is Rocket Mortgage same as Quicken Loans?
Due to this, Quicken Loans changed its name to Rocket Mortgage on July 31, 2021. Rocket Mortgage revolutionized the way people find homes and obtain personal loans by inspiring sister businesses like Rocket Homes® and Rocket Loans® to follow suit. Now that Quicken Loans has added Rocket to its name, it has joined them.
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 bank is behind Rocket Mortgage?
Customers can apply online, receive approval quickly, and receive funding the same day. Loans are provided by Cross River Bank, a partner of Rocket Loans.
Does Rocket Mortgage have a good reputation?
Borrower experience: 4. 9/5 Despite receiving some customer complaints, Rocket Mortgage continues to lead the mortgage industry in terms of customer satisfaction, according to J D. Power. In terms of expertise, the lender is also the gold standard.