The digital era that found momentum during the late 1990s with the dot-com boom has dramatically transformed the landscape of the mortgage loan industry. At the forefront of this digital wave is Rocket Mortgage, which seized the trophy as the country's largest retail mortgage lender. Formerly known as Quicken Loans, Rocket Mortgage rebranded in May 2021 to fall in line with its parent entity, Rocket Companies.
With the advent of firms such as Rocket Mortgage offering automated approval processes via their platforms, one might question whether these online giants outweigh the benefits of the familiar, local community bank. The answer is - it depends. What works for you depends on what you are comfortable with and where you can find the best rates.
Interestingly both types of lenders, online or traditional, offer mortgage pre-approval, which can be a deciding factor when placing an offer on a home. However, there are other defining differences that could sway your preference.
Opting for an online lender lends certain advantages, especially if you prefer to be in command of the loan process. Rocket Mortgage, for example, presents appealing benefits. However, a major part of the digital loan model is that once your loan eventually closes, it will likely be sold to another company for servicing. This implies that you have no control over which company will own your mortgage or to whom you will be making your payments.
For those who prioritize human interaction and reputability in their financial transactions, in-person services provided by companies like Rocket Mortgage may not be entirely satisfactory. Instead, some individuals value the experience of meeting face-to-face, eye-to-eye, and hand-shaking when trusting someone with their financial affairs, which is where traditional, local lenders shine.
There are also specific advantages to sticking with a brick-and-mortar provider. These can include terms for borrowers with varying credit scores, low down payments, and more. However, Rocket Mortgage definitely takes the cake when it comes to offering a wider variety of loan products and more flexible requirements.
Rocket Mortgage was previously Quicken Loans, but rebranded in May 2021 to align itself with its parent company, Rocket Companies, more effectively. Rocket Mortgage is one of the U.S.'s largest mortgage lenders and operates solely online.
Whether you prefer sticking to your neighborhood bank or exploring online arenas like Rocket Mortgage, remember to explore all options and make an informed decision. Ultimately, online mortgage companies like Rocket Mortgage offer more products and cater to a wider audience, making them an interesting option in the lending landscape.