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If you’ve had a mortgage before or you know how the process works, a completely digital process may be just what you need.
You don’t have to deal with a loan officer or playing tag with phone calls. Your dashboard tells you everything you need allowing you to close your loan fast.
Is Rocket Mortgage right for you? Check out my review.
Rocket Mortgage offers the same loan types and products as your typical non-bank lender, including:
Please note, Rocket Mortgage doesn’t offer home equity loans, home equity lines of credit (HELOCs), USDA Loans, or reverse mortgages at this time.
Like any mortgage lender, the mortgage rates Rocket Mortgage offers vary by person. To get an idea of what they are offering on a specific day, head to Quicken Loans’ website to see what rates they’re offering.
Remember, though, the rates you see advertised online aren’t what you may get. That’s the starting point for most interest rates.
Rocket Mortgage adjusts the rates based on your qualifying factors, risk factors, and the profit they want to make on the loan.
Don’t take the rates you find at face value. If you want a true estimate of what they’ll charge you, create a Rocket Mortgage account and provide details about your qualifying factors.
Only do this when you’re ready to apply for a mortgage, though, since they’ll pull your credit, resulting in a hard credit inquiry on your credit report.
Like any lender, Rocket Mortgage charges lender fees. This is how lenders cover the cost of originating and processing your loan.
It’s important to find the balance between paying mortgage fees and choosing the right interest rate. I always recommend that borrowers look at the bottom line – how much does the loan cost over its entirety, not just monthly?
For example, look at only the interest rate, asking for the lowest rate possible, and ignore the high origination fees charged. The loan may be more expensive than you realized over its entire term.
Rocket Mortgage, like most mortgage lenders, charges different upfront fees:
Here’s where Rocket Mortgage really differs. If you love digital processes and minimal human interaction, you’ll love it.
If you like hand-holding and talking to someone daily about your loan updates, you may not like it as much.
Here’s how it works.
Getting pre-approved is important (and almost necessary) for most homebuyers. Even if you’re refinancing, knowing the rate and fees Rocket Mortgage will provide is important.
To get pre-approved, you’ll answer a series of questions and provide proof of your finances, including your paystubs, tax returns, bank statements, and proof of current debts.
Every situation requires different documentation and/or eligibility requirements. Rocket Mortgage has several loan programs and some leniency with the guidelines based on the factors you present.
The digital program will alert you if Rocket Mortgage needs further information to process your loan.
If you’re comfortable dealing with a completely digital process, you can. You never have to talk to a home advisor if you don’t want to. But, if you have questions, are confused, or need some guidance, you can contact a specialist.
Because Rocket Mortgage offers so many loan options, qualifying depends on the mortgage you want. On average, expect these guidelines:
Applying for a mortgage is stressful, but Rocket Mortgage makes it easy. You complete the application in the privacy of your own home and on your own time.
You don’t have to talk to anyone – you just follow the prompts, answering the questions, and providing the documentation they request.
Rocket Mortgage has topped the customer service ratings for J.D. Power for 11 years+. Even if they don’t offer the lowest interest rates, the level of customer service often makes up for the slightly higher rates.
Customers love the level of customer service they receive during the application process (when they request it) as well as after they close.
A mortgage is a big commitment, so knowing you have a good lender on your side is reassuring.
You can get a loan with as little as 0% down if you are a veteran or 3 – 3.5% down if you need an FHA or conventional loan.
They don’t ‘penalize’ you if you only make a small down payment, making it much easier for renters to become homebuyers because they don’t need a large 20% down payment.
Because Rocket Mortgage is the lender and servicer, loans fund fast. You don’t have to wait for a third-party bank to get their act together to be able to close on your loan.
Once you have a clear to close because you cleared all your stipulations, you’re ready to close, and Rocket Mortgage is ready to fund your loan.
Rocket Mortgage uses a commonsense approach to underwriting. They don’t automatically turn down low credit scores or high debt ratios.
They look at the big picture. Can you afford the loan? Do you have a high debt ratio but can keep up with your bills?
They look at the factors of each application to ensure the loan you’re applying for fits within what you can comfortably afford without putting you over the edge.
But they don’t use rock-solid numbers that don’t look at your true ability to afford a loan.
Before you look at homes, you should get pre-approved, and Rocket Mortgage makes it easy. You answer their simple questions, complete the loan application, and provide the supporting documentation.
Most borrowers must provide:
Rocket Mortgage will underwrite your loan, asking for any more documentation they need to approve your request for financing.
Once approved, they will write a pre-approval letter. This letter shows lenders and real estate agents you are qualified to borrow money to buy a home.
The final approval relies on the value of the home you choose and its title (a clear title is required to close).
Rocket Mortgage offers several refinancing options. The process is just as easy as a purchase loan, but when you’re refinancing your mortgage, you have more options.
Better Mortgage also offers an online loan process. But they also claim to offer the lowest rates and fees in the industry.
Better Mortgage doesn’t charge any origination fees, offers fixed and adjustable-rate loans and both conventional and government-backed loan options.
If you have unique qualifying circumstances, though, you should look elsewhere. Better Mortgage focuses on conventional loan borrowers, and they are just now dabbling in FHA loans with a promise to add VA loans to their lineup soon.
>> More: Better Mortgage Review
LoanDepot also cornered the market with an online mortgage loan process. They do offer in-person support at its 200+ locations, too, though.
LoanDepot claims they have the fastest closing process, closing 50% faster than most other lenders. Like Rocket Mortgage, LoanDepot offers many loans, including conventional, jumbo, FHA, and VA loans for purchase and refinance.
>> More: LoanDepot Mortgage Review
Guild Mortgage is a west coast mortgage company with in-person and digital opportunities for borrowers.
They promise a 17-day closing but typically have interest rates higher than Rocket Mortgage. Guild Mortgage isn’t as transparent as Rocket Mortgage on its website, forcing you to talk to someone to get the true details of your loan options.
>> More: Guild Mortgage Review
Rocket Mortgage’s rates are about the same as the national average. While you may not save money on interest rates by using them, their digital process that makes securing a mortgage easier and faster can be worth much more than a lower interest rate.
Like any lender, choosing Rocket Mortgage is a personal decision. It can be a great option if you’re comfortable with a mostly online process and managing the stipulations yourself. The fact that they underwrite, fund, and service their loans makes it much easier and more convenient to manage your loans.
Rocket Mortgage offers a wide selection of loans, including conventional, FHA, VA, and jumbo loans. There’s a loan for most borrowers unless you have a unique situation and need a subprime loan or want a home equity loan since they don’t provide those.
Yes, you can buy a home or refinance an existing mortgage using Rocket Mortgage. The digital process makes it easy to take advantage of lower interest rates without the hassle of shopping around with different lenders.
As is the case with any financial company, always use caution. Rocket Mortgage uses bank-level encryption, but you should always protect your data, only accessing your account on your home Wi-Fi versus a public internet connection.
Most borrowers need at least a 620-credit score for a conforming loan and a 580 score for an FHA loan. However, Rocket Mortgage has flexible guidelines and will allow compensating factors to make up for a low credit score.
You can currently use Rocket Mortgage in all 50 states and the District of Columbia. It’s not available in Puerto Rico or outside of the United States.
If you’re comfortable with online processes, Rocket Mortgage is a great fit. If you think you have unique circumstances or you don’t understand the mortgage process, though, you may want a more personal approach working with a lender and loan officer face-to-face.
If you treasure good customer service, like working digitally, and want a fast process, Rocket Mortgage could be a great option.
Even if you need personal help, you can contact a home advisor. It comes down to the rates and fees you’ll pay and if you qualify for the mortgage selection Rocket Mortgage offers.
Kim Pinnelli is a Senior Writer, Editor, & Product Analyst with a Bachelor’s Degree in Finance from the University of Illinois at Chicago. She has been a professional financial writer for over 15 years, and has appeared in a myriad of industry leading financial media outlets. Leveraging her personal experience, Kim is committed to helping people take charge of their personal finances and make simple financial decisions.
