Rocket Mortgage, a branch of Quicken Loans, is a mortgage company that has literally rocketed into popularity largely due to its mobile-friendly app. The company entered the mortgage scene in 2016 after a clever Super Bowl commercial, and immediately changed the home buying scene.
Since then, Rocket has become the go-to mortgage lender for homebuyers who want a fast, convenient loan process with minimal human interaction. If you prefer doing things online rather than talking to a person, Rocket could be right for you. Plus, there are plenty of built-in tools to answer (and anticipate) any questions you may have.
Learn more about Rocket Mortgage and how you could qualify for a home loan with this mobile-friendly lender.
Mortgage Application Requirements
There are a few basic application requirements to be aware of when considering a loan through Rocket Mortgage. The first is your credit score.
How low can your credit score actually be?
It depends on the loan type. For conventional and USDA loans, your score could be as low as a 620. For FHA and VA loans, you may be able to qualify with a score of just 580.
What about the minimum down payment?
That’s certainly a concern for a lot of people because the age-old tradition of a 20% down payment is probably unattainable for most Americans. Luckily, Rocket Mortgage has low down payment options available.
You could actually qualify for a mortgage with as little as 3% down on the home’s sales price. The details do depend on your credit score, debt-to-income ratio, and other financial factors.
Types of Home Loans Available
Rocket Mortgage really excels in its loan type offerings. They offer:
- Conventional loans (fixed and adjustable rates available)
- FHA loans
- VA loans
- USDA loans
- Jumbo loans
This is actually one of the widest arrays of home loans available on the market, especially for an online lender. You can also compare your options as part of the loan application process. Some, obviously, have rather limiting requirements. A VA loan, for example, is only available to active military and veterans, while a USDA loan can only be used for a home located in a rural-designated area.
Fees and Rates
Origination fees are approximately 0.5% of the loan amount, so for a $300,000 house, a loan through Rocket Mortgage would cost you $1,500. Government-backed loans (such as FHA, VA, or USDA loans) do have slightly higher fees, but never exceed 1%. So a $300,000 house would have a maximum of a $3,000 fee.
People often go to Rocket Mortgage to get an idea of what interest rate they would get if they went through the company; however, Rocket doesn’t post sample rates on its website. To get a personalized rate, you must first create an account and provide some basic information on yourself.
Rocket Mortgage’s Loan Process
The loan process varies depending on whether you’re buying a new home or refinancing your existing mortgage.
Buying a New Home
If the home you’re purchasing is already under contract, Rocket will submit an approved loan for processing through one of its many mortgage bankers.
Typically, to go through a full application takes under thirty minutes. Take your time reading through the material, ask any questions you may have, and watch educational videos on topics you’re fuzzy about. It’s smart to take the time to understand what your options are and why some choices are better than others.
Rocket truly excels in this area. You’re encouraged to go at your own pace, learn what you need to learn, and make the best decision possible. At no point are you pushed to choose one loan over another, or given a time frame where you need to decide then and there.
Once your loan is in the underwriting stage, a social network style wall comes up whenever you log in. It helps you keep up-to-date with your to-do list, allows you to manage and e-sign any paperwork you may have, monitor your loan’s progress, and schedule a date for closing on your loan.
If you want to refinance, you must first choose what your goal is. For most people, their goal is to lower their monthly payment. Once you select your option, enter where you live and Rocket will gather all public data that pertains to your house.
If you need asset information, meaning banks or investment accounts, most U.S. financial institutions have that on their website to be easily downloaded.
Depending on where you work, Rocket might also be able to import your employment information.
If at any point you get confused, you can click on question marks that either bring up hyper-relevant FAQs or professionally-made educational videos. If you’re still confused after going through those, you can click on the ‘Talk to Us’ button to talk with a knowledgeable mortgage banker.
Answer just a few more questions and you’ll get to the ‘See Solutions’ page. Here Rocket will pull your personalized credit information, process it, and after crunching some numbers will reveal your loan choices. From there, each option can be further customized, such as the loan term, money due at closing, and interest rate (whether it’s fixed or adjustable).
If you like what you see, click on the “See if I’m approved” button. Rocket then verifies whether you are qualified and submits your application to an underwriting system. If you get approved, you can lock in your loan rate right then and there.
The best part of Rocket Mortgage by far (even compared to other online lenders) is that you can receive the loan amount you qualify for in just a matter of minutes. And it can all be done on your phone. So if you’ve been scrolling through Zillow and find your dream home, you can immediately hop over to the Rocket Mortgage app and check to see if you’d qualify to borrow that amount.
The entire process is easy and intuitive, from start to finish, which is where Rocket truly stands out.
Rocket’s online application is intuitive and educational. If you never really know what you’re doing and why you’re doing it when it comes to anything finance related, Rocket takes the time to make sure you understand what’s going on.
Ask a question at any time during the process. Again, not only are the mortgage bankers extremely knowledgeable, they’re also really good at explaining things to anyone.
But Rocket Mortgage may not be for you. For example, if you need an alternative credit history to be used, or you are looking for a home equity loan or HELOC, then your business might be better deserved elsewhere. Otherwise, Rocket Mortgage is a solid home mortgage company with excellent customer service that can’t be found elsewhere.