Rocket Mortgage Review for August 2022

Rocket Mortgage is the largest online retail mortgage lender in the United States. This online lender offers a wealth of educational content on its website to help buyers better understand the mortgage and home buying process.

Its website offers several easy-to-use mortgage calculators to help you determine how much house you can afford. Rocket Mortgage is a leading lender of FHA loans, which are lower and flexible down payment options for home buyers. It is also one of the largest securitizers of VA loans, which are lower-cost mortgages for veterans and their family members.

As

  • Quick and convenient underwriting process with verified approval
  • Offers FHA loans for condominiums (a rare find)
  • No fee to lock in interest rate for 45 days

Do not like

  • No physical branches, although it partners with independent brokers with physical locations
  • No free float for interest rate locks
  • No USDA or HELOC loans

Rocket Mortgage offers an option called Overnight Underwrite, a quick and verified approval tool for getting a home loan. It works the same way as a pre-approval letter, but it actually offers full lender approval in as little as 2 hours. By uploading all your documents before 7 p.m. ET, for example, you can get full approval the next morning. If you go through the verified approval process and your loan does not close due to Rocket Mortgage reviewing your finances, they will pay you $1,000.

Here’s everything you need to know about Rocket Mortgage and its mortgage offerings.

What types of mortgages does Rocket Mortgage offer?

Rocket Mortgage offers most types of home loans and is one of the largest online mortgage lenders in the country. Its full list includes:

  • Virginiaor veteran loans
  • FHAor loans from the Federal Housing Administration
  • Conventional
  • Giant
  • Armsor adjustable rate mortgages
  • Refinance

Minimum Credit Score for Rocket Mortgage

The minimum credit score for conventional mortgages with Rocket is 620 and 680 for jumbo loans. You can get approved for an FHA or VA loan through Rocket Mortgage with a score as low as 580.

Minimum down payment requirements for Rocket Mortgage

The deposit requirements with Rocket Mortgage are the same standard requirements for all home loans. Here are the requirements by type of loan:

  • VA loan: 0% minimum deposit required
  • FHA loan: 3.5% minimum deposit required
  • Classic loan: Minimum 3% deposit required
  • giant loan: 10% minimum deposit required

What are the terms, fees and conditions of Rocket Mortgage?

Rocket Mortgage charges most of the fees typical of all lenders, but there is no fee to lock in an interest rate for 45 days. Locking in your rate can help, especially as interest rates are rising and are expected to continue rising throughout 2022. Even a tenth of a percentage point can add tens of thousands of dollars over time of your loan.

However, if you want to extend your rate for another 15 days (which you can do twice), it will cost you 25 basis points, which means your mortgage rate will increase by 0.25%. While some lenders offer a free float, which lets you lower your locked-in interest rate if rates drop, Rocket Mortgage doesn’t offer it as standard. Instead, Rocket Mortgage offers Rate Shield, a product that lets you lock in an interest rate for 90 days before you find a home, which includes a free float down – but it’ll cost you 1 basis point .

This online mortgage giant also charges a $500 deposit for home appraisals, which is used to pay for the appraisal when you close on your new home at the end of the transaction.

Aside from lender-specific fees, there are other standard costs and fees associated with buying a home. Some of the most common include:

  • Home evaluation
  • Title insurance
  • Attorney fees
  • Taxes
  • home insurance

What discounts does Rocket Mortgage offer?

Like most lenders, Rocket Mortgages offers you the option of lowering your interest rate by purchase of mortgage points in the front. If you can afford to pay cash for points, your interest rate for your entire loan will go down, saving you tens of thousands of dollars over the life of your mortgage.

Can you refinance with Rocket Mortgage?

Yes, Rocket Mortgage offers to refinance home loans. You can fill out a cash refinance or standard term rate financing.

Where does Rocket Mortgage operate?

Rocket Mortgage operates online in all 50 US states. Although the company itself does not employ any mortgage brokers, it works with thousands of independent mortgage brokers across the country, many of which have physical branches where you can go for an in-person experience.

FAQs

How long does it take to apply online with Rocket Mortgage?

Rocket Mortgage has a verified approval process called Overnight Underwrite, which can get you approved for a mortgage in as little as 2 hours.

Does Rocket Mortgage advertise interest rates online?

Rocket Mortgage advertises daily interest rates online, but your individual interest rate is always specific to your personal financial situation. Your credit score is a big factor in determining your interest rate, so be sure to prioritize paying off any high-interest debt, like credit card debt, before you start paying. look for a house.

There is no firm credit pull when you search for general Rocket Mortgage rates or get pre-qualified, but to get pre-approved or verified you need to pull your credit.

How many days does it take to close a home with Rocket Mortgage?

It can take as little as eight days to close a new home with Rocket Mortgage, which is a fairly quick closing process. On average, the closing process takes about 26 days, but it depends on the market in which you are buying your new home. In particularly hot markets, you should expect it to take more than a month to close on your home, no matter which mortgage lender you work with.

Methodology

CNET reviews mortgage lenders by comparing various criteria, including: types of loans offered, credit score requirements, down payment requirements, features, terms and fees, discounts offered, accessibility and refinancing options.

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