What Is Rocket Mortgage?

Sep 03, 2022 By Triston Martin

If you're looking for an additional mortgage or are trying to refinance your mortgage using the internet, it’s important to know there are a variety of loan lenders that employ the same strategy. Although sites like LendingTree and Zillow serve as lead generators and send an application for a loan to several mortgage companies, Rocket Mortgage is an actual lender.

You will not receive a flood of emails from lenders trying to gain your company with Rocket Mortgage. Your personal information is put in smaller hands, a huge attraction for customers concerned about privacy. If you're searching for a speedy method of comparing rates from several lenders, you might want to check out websites that send your details to several lenders simultaneously. The company based in Detroit claims it is the country's top mortgage lender and is expected to close 351 billion in mortgages in 2021.

Compare to Traditional Loan

Rocket Mortgage is designed for those who prefer the convenience of taking out an installment loan at home or their nearby coffee place. However, the application process and loan closing are like that of your local bank. When you work with Rocket Mortgage, you can obtain the loan online. For those who don't prefer to fill out an online application, you can work with Home Loan Experts. Rocket Mortgage uses your details about your finances and employment to determine your loans and rates to which you're eligible.

Before closing, your loan lender will verify your credit score and confirm that your employment and income information is correct and that you are covered by homeowners insurance. Also, it must request an appraisal for your home through a third party. These costs are expensive, so Rocket Mortgage requires a borrower submit a "good faith deposit" of 400 to $750. The good thing is that the lender deducts the deposit from the other closing costs, meaning that at the end of the day, you won't have to pay more as you would with other lenders.

Rocket brand makes borrowing easier, and its method of closing mortgages is no exception. Customers can choose the time they'd like to close and from where by simply login into their account. Rocket Mortgage claims to cover 99% of the loans it originates; therefore, you're likely to pay your installments through Rocket Mortgage once you've completed your home purchase.

Customers who prefer having control of their experience are likely to utilize Rocket Mortgage, an all-digital platform that the company introduced in 2015. After logging into Rocket Mortgage app or website and are asked to give information regarding your financial status along with the amount and type of the loan you're seeking. For many people, Rocket Mortgage can obtain pay statements and stubs directly from their banks, eliminating the necessity to gather and forward these documents. The platform allows you to use it to check if you've been approved and ask questions regarding your loan. You can also sign in via your account on the Rocket Mortgage app or website.

Pros and Cons

In contrast to marketplaces on the internet like LendingTree and Credible, customers who choose Rocket Mortgage are only dealing with only one lender. This has advantages and disadvantages. If you choose to opt for the plus column, there's no stream of messages by lenders hoping to gain your business. Your personal information is transferred less accessible, which is a major benefit for privacy-conscious customers.

However, it's difficult to determine the most favorable rate when you don't have many offers. If you also approach more than one lender directly to compare shops, you might have more paperwork and questions about the credit score. One benefit that Rocket Mortgage provides is choice. Rocket Mortgage, which has existed since 1985, offers conventional mortgages and specific products like the U.S. Department of VA and FHA loans.

Rocket Mortgage markets itself as an alternative that is more convenient than traditional lenders. It's certainly one of the reasons. The online service allows you to contact an employee, track whether your loan is in good standing, and access information regarding the closing directly from your smartphone. Do homeowners need to compromise services when they work with bankers from another country? According to the majority of industry sources, it is "No."

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