Rocket Mortgage Reviews: Online Applications and Low Rates

✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.

Rocket Mortgage is an online lender providing financial services for almost 25 years. They offer conventional loans, jumbo loans, and FHA loans. You can also refinance with Rocket Mortgage or get home equity loans from them.

Rocket Mortgage is known for their convenient and simplified application process. They offer a feature-rich platform where you can get pre-approval and track the progress of your application online. They are also known for their 5-star customer service and educational resources.

With Rocket Mortgage, you incur an origination fee. They offset these charges by providing competitive rates. Rocket Mortgage’s rates usually outperform industry norms.

✍️ Editor’s Take: Rocket Mortgage is a trusted mortgage lender. They offer a verified approval letter to help your offer stand out. They also run special programs to help you save on down payments and closing costs.

Is Rocket Mortgage Legit?

Yes, Rocket Mortgage is a legitimate online lender. Founded by Dan Gilbert in 1985, Rocket Mortgage is a leading online lender under their parent organization Rocket Companies.

In 1999, they rebranded to Quicken Loans. Finally, Dan renamed the company from Quicken Loans to Rocket Mortgage LLC. In 2022, Rocket Mortgage has achieved an annual closed loan volume of $133 billion and has become one of the largest online lenders.

Rocket Mortgage Locations

Rocket Mortgage offers services throughout the United States. The extensive coverage of Rocket Mortgage is a result of their 100% online procedures.

It is good to have an online platform to apply and track the status of your application. The absence of physical branches might be a drawback for those who prefer in-person interactions.

Rocket Mortgage Loans

Rocket Mortgage offers loan options for financing and refinancing. They offer various loan types based on the requirements of lenders.

Rocket Mortgage Rates

As of December 11, 2023, these are Rocket Mortgage’s interest rates. Please note that the interest rates fluctuate as per the market condition. So, it is advisable to check for real-time updates.

How to Apply for a Mortgage?

With Rocket Mortgage, you can apply for a pre-qualified letter and a pre-approved letter. The process of getting a pre-qualified letter is quite simple. You have to fill out a form on their website with basic details. Here is how the process goes:

• Enter Basic Information: Fill out a form with details like your current living situation, primary home address, and real estate agent details.
• Provide Purchase Details: You also need to fill out your preferred location and expected and minimum budget.
• Run a Soft Credit Check: You need to mention your marital status, annual income, and current home’s mortgage balance to run a credit check. They also ask you about the down payment and closing costs you are willing to incur.
• Evaluate Available Mortgage Solutions: Get a recommendation on mortgage solutions, types of home loans, down payments, monthly payments, and mortgage rates. Evaluate and choose the one that fits your needs.

Once you have decided, you’ll get your pre-qualified approval letter online, accessible from your Rocket Mortgage account.

To get a pre-approval letter, contact a Rocket Mortgage home loan expert from their website. They guide you through the process of getting pre-approved.

Rocket Mortgage Fees

Rocket Mortgage doesn’t provide much information about their charges on their website. However, in our research, we came to know that they do charge an origination fee. This fee is typically between 0.5% to 1%. Many competitors of Rocket Mortgage don’t charge these fees.

» What’s My Home’s Value: You can know your home’s market value with Houzeo’s free Home Worth Estimator. It helps you estimate the amount you will get upon sale.

Special Programs for Borrowers

Rocket Mortgage has initiated some special programs for borrowers.

1. ONE+

As a borrower, you can use Rocket Mortgage’s ONE+ program for conventional loans. This program allows you to pay only 1% down payment instead of 3% for conventional loans. The remaining 2% is covered by Rocket Mortgage.

It is a great option for you if you can’t afford such a hefty down payment. This loan is only available to borrowers with annual income less than or equal to 80% of the area’s average. You can use this program to purchase a primary residence.

2. Rocket Rewards

Rocket Rewards helps lenders earn reward points. Borrowers can perform various activities to earn these rewards. These activities include watching videos, reading articles, and using Rocket’s mortgage calculator.

You can redeem these points for up to $10,000 toward your down payment and closing costs. You can also use these Rocket points to pay off your mortgage faster. This helps you to reduce your interest rates. To redeem these points, you can visit the ‘My Rewards’ page in your Rocket Mortgage account.

3. Rocket Homes

Rocket Home is a subsidiary of Rocket Companies. They offer real estate services to buyers and sellers. If you buy a home with Rocket Homes, Rocket Mortgage gives you a closing credit of 1.25%, up to $10,000. You can use this amount to pay closing costs.

On the other hand, if you sell a home using Rocket Homes, they give you 0.5% of the home’s sale price. To be eligible for this rebate, the home’s sale price should be more than $100,000.

The rebate is not available in Alabama, Alaska, Iowa, Kansas, Mississippi, Missouri, New Jersey, Oklahoma, Oregon, and Tennessee. You can also bundle these 2 services and enjoy the benefits of both.

Customer Reviews of Rocket Mortgage Lender

Rocket Mortgage has a 4.7 out of 5-star rating on Trustpilot. This rating is based on 16,416 reviews. Conversely, Rocket Mortgage has only secured a 2.1 out of 5-star rating on Better Business Bureau. These ratings are an average of 1,287 reviews.

Most customer reviews of Rocket Mortgage praised the availability and promptness of their staff. On the other hand, we found complex paperwork to be the common reason for frustration among customers.

Rocket Mortgage Reviews: Praises

✅ Jaqueline found the entire process to be simple. She said that the representatives of Rocket Mortgage helped her throughout the process.

✅ Claybon was pleased with Rocket Mortgage’s services. They praised the swift process of the company.

Rocket Mortgage Reviews: Complaints

❌ Judith was furious as her loan got postponed by 3 weeks due to Rocket’s complex paperwork process.

❌ Mark was frustrated with the underwriters at Rocket Mortgage, who took 4 months to complete the process. He found their customer service and other representatives to be fine.

Rocket Mortgage Pros and Cons

Let’s evaluate the pros and cons of Rocket Mortgage to see if they are the ideal choice for you.

✅ Pros

There are certain advantages of working with Rocket Mortgage.

• 100% Online Process: Rocket Mortgage’s process is completely online. So, you can apply and get pre-approved with Rocket Mortgage’s mobile app or web portal.
• Low Interest Rates: Rocket Mortgage’s interest rates are lower than the national average.
• 24/7 Customer Service: Rocket’s customer service is available 24/7 to help you out.
• Reward Points: You can earn reward points on Rocket Mortgage’s platform that can be redeemed for paying off the down payment and closing costs.

❌ Cons

During our research, we found certain limitations of Rocket Mortgage.

• Origination and Fees: Rocket Mortgage charges originating fees. This fee is not mentioned on their website.
• Runs Hard Credit Check: Rocket Mortgage runs a credit check to give you customized interest rates. This impacts your credit score.
• No USDA or HELOC Loans: Rocket Mortgage doesn’t avail of some important loans like USDA and HELOC.
• No Physical Branches: Rocket Mortgage doesn’t have any brick-and-mortar offices. So, if you prefer in-person interaction, Rocket Mortgage may not be ideal for you.

Rocket Mortgage Competitors

» Jump to: Rocket Mortgage vs. Better Mortgage | Better Mortgage vs. Bank of America

1. Rocket Mortgage vs. Better Mortgage

Better Mortgage is an online mortgage lender like Rocket. You can also use Better Mortgage to get a home equity line of credit, which is not provided by Rocket Mortgage.

Unlike Rocket Mortgage, Better Mortgage doesn’t charge any lender fees. So you can save a good amount on that. They also give you a pre-approval letter without a hard credit check. However, you’ll have to incur slightly higher interest rates with Better than those of Rocket’s.

2. Rocket Mortgage vs. Bank of America

Bank of America is the biggest national bank and has processed thousands of home mortgages. You can apply for fixed and adjustable-rate conventional loans, jumbo loans, and FHA loans.

With Bank of America, you need to have a higher credit score to be eligible for loans. But, this also means you enjoy lower interest rates.

» Check the current mortgage interest rates at Bank of America here.

Is Rocket Mortgage Good?

Rocket Mortgage’s 100% online process allows you to apply and track your mortgage application online. Their special programs also help you save thousands. Their top score on JD Power’s Mortgage Origination Satisfaction says a lot about their customer satisfaction.

So, yes. You can go with Rocket Mortgage if you don’t mind the lender’s fees and no in-person interaction. You also need to consider the credit check they perform to give you personalized interest rates. Remember, this affects your credit score.

Overall, as per Rocket Mortgage reviews, they are a good option for you. Their lower interest rates, special programs, and cashback on using other services help you save thousands.

 

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