You should know the difference if you're planning on using Quicken Loans or Rocket Mortgage. Quicken Loans' internet-based mortgage service is known as Rocket Mortgage. The Rocket Mortgage website may be used for every step of the mortgage process, from initial application through monthly payment after closing. Throughout the transaction, you will interact only through the Rocket Mortgage platform; however, Quicken Loans is the firm responsible for processing and creating the loan.
How Do Mortgages Work?
A house loan, or mortgage, is used to finance a residence's purchase. If you default on the loan, the lender might foreclose on your property and sell it to recoup their losses. Mortgage options range from the "conventional," "FHA," "VA," and "USDA" varieties.
The interest rate on a mortgage can be either fixed (being the same during the loan's term) or variable (being subject to change by the lender, within certain restrictions).
How Do Home Equity Loans Function?
Equity in a property is the monetary surplus above the mortgage's principal sum. There is $50,000 in equity if your property is worth $200,000 and you owe $150,000. You may take out a home equity loan to use some of the value of your property as collateral for a loan. The money from the loan is yours to do with as you like, and the mortgage is only additional security.
Quicken vs. Rocket: Comparing and Contrasting
Quicken Loans originated more loans than any other U.S. lender in 2019, the most recent year for which data is available. According to CEO Bill Emerson in a November 2015 press release, the business launched Rocket Mortgage in 2015 as their "internet retail lending platform." 3
Despite maintaining its website, Quicken Loans now directs most of its consumer applications through Rocket Mortgage, a web, and mobile app-based mortgage service.
The Process of a Rocket Mortgage
The Rocket Mortgage application requires you to answer several questions about your financial history, employment, and the house you want to buy. You'll have to give your banking institution permission for a credit check and login credentials.
This enables the site to have access to and validate up-to-the-minute financial data. After your mortgage loan closes, you'll have access to Rocket Mortgage's online payment portal to make regular monthly payments.
Why You Should Use the Rocket Mortgage Platform
Quicken Loans has a lot going for them, and one of those things is its Rocket Mortgage platform and the convenient online application procedure it provides. According to the marketing material, customers may cut costs and time spent using the service.
Rocket Mortgage boasts that a mortgage loan may be approved in just eight minutes, so it's fast. If you want to apply for a loan online, Rocket Mortgage makes it easy to do so from any computer or mobile device, with no need to fax or mail any documents.
There is no need to fax, scan, or submit any financial papers because the service imports your data automatically. Electronic signatures are acceptable, and online conversations with your loan officer are available.
Clients who have purchased from the firm have nothing but praise. Quicken Loans, for the ninth year in a row as of 2018, has the most outstanding customer satisfaction levels in the country, according to the 2018 U.S. Primary Mortgage Origination Satisfaction Study by J.D. Power.
Problems With Rocket Mortgage
Using Rocket Mortgage by Quicken Loans has one major drawback: you get far less assistance than you would if you applied for a mortgage over the phone or in person. You may talk to a "Home Loan Expert" if you want to, but it's not essential.
Due to this lack of guidance, first-time homeowners may feel more overwhelmed by the entire mortgage process. It's also not a good choice for self-employed purchasers or has bad credit. To qualify for a loan through Rocket Mortgage, borrowers need a credit score of at least 580, and those who are self-employed need to consult with an agent.
For Whom Is Rocket Mortgage Best?
Using Quicken Loans' Rocket Mortgage, borrowers may finalize their mortgage applications entirely in virtual space. If you have any problems or are uncomfortable entering your financial information online, you may contact a platform agent for assistance.
So that you may apply for and manage your mortgage from the comfort of your home, Rocket Mortgage employs banking-grade encryption on all transferred data.
The Verdict
Whether you go with a traditional brick-and-mortar bank or an internet lender like Rocket Mortgage, rate browsing is always a smart idea. Rocket Mortgage is one of the kinds of businesses that can cater to a wide range of customers since it offers a wide range of goods.
