Known to provide peace of mind for many consumers, the option of discussing mortgage details face-to-face with a lender has a significant appeal. However, recent trends indicate the growing popularity of online mortgage companies like Rocket Mortgage, the nation's largest home loan provider. Evidently, people are increasingly comfortable with applying for a loan outside the confines of an office.
In 2021, Quicken Loans announced its formal name change to Rocket Mortgage, solidifying its position under the umbrella of the publicly traded Rocket Companies (RKT).
When searching for a new mortgage or refinancing online, it's crucial to understand that not all loan providers function the same way. Unlike websites like Lending Tree and Zillow, which solicit your loan request to multiple lenders, Rocket Mortgage is an actual lender. If you use Rocket Mortgage, you avoid an influx of emails from loan providers vying for your business, and your personal information is less exposed; this is attractive to privacy-conscious customers.
Yet, for those who want to compare rates from an array of lenders, you may opt for websites that distribute your information to multiple lenders simultaneously.
Hailing from Detroit, Rocket Mortgage alleges to be the nation's premier mortgage lender, with about $351 billion worth of home loans closed in 2021.
Rocket Mortgage is designed for people who prefer the convenience of acquiring a loan from their home or even from their local café. The process of application and loan closing is similar to the traditional procedure followed by brick-and-mortar banks. You can submit an all-digital application or work with a Rocket Mortgage Home Loan expert if you prefer. Rocket Mortgage then reviews your financial information and employment details to determine the loan options and rates for which you qualify.
Before closing the loan, the company verifies your credit score, income, employment, and homeowners insurance, and commissions a third-party home appraisal. As these steps incur costs, Rocket Mortgage asks borrowers for a "good faith deposit" between $400 to $750 which is later deducted from other closing costs.
The Rocket brand puts customer convenience at the forefront of their process. You select the closing date and location simply by accessing your online account.
With Rocket Mortgage's all-digital platform, you can have complete control over your mortgage experience. You log onto the website or app, provide details about your finances and the type of loan you're applying for. In many cases, the company can directly pull your pay stubs and bank statements from your banks, eliminating the need for you to gather and send those documents.
Compared to online marketplaces like LendingTree and Credible, using Rocket Mortgage means dealing with a single lender, offering both pros and cons.
The company's vast history dating back to 1985 provides conventional mortgages along with specialized products like VA and FHA loans. The digital service allows you to get in touch with a team member, check your loan's status, and view closing details right from your mobile device.
While some might worry about the loss of service when working with a nationwide banker, most industry sources including J.D. Power, which gave Rocket Mortgage its highest customer satisfaction award for 11 consecutive years until 2021, where it claimed the No. 2 spot, disprove this belief.
Rocket Mortgage, previously called Quicken Loans, is part of Detroit-based Rocket Companies Inc., a public company trading on the NYSE under the ticker RKT. It runs several businesses, apart from the home loan business, including Rocket Homes, Rocket Auto, and Rocket Loans, among others.
Rocket Mortgage now only deals in home loans and related products and offers no banking services such as deposits or payment services like credit or debit cards.
Promising a convenient method to finance a home purchase, Rocket Mortgage has established a firm reputation over the years. However, it's still advisable to shop around to ensure a competitive interest rate.