Do you know how long it takes for the space shuttle to reach orbit? Apparently it takes just eight minutes, the same amount of time it will take borrowers to get a full mortgage approval online.
This is the claim Quicken Loans is touting via its new online mortgage approval engine known as “Rocket Mortgage.”
The company launched (no pun intended) the “end-to-end online product” this morning in what appears to be a direct response to the many online mortgage startups now in existence.
Most consider themselves online mortgage lenders that cut out the middleman.
Quicken seem to have taken notice with their latest move, referring to themselves in the press release as the nation’s “leading FinTech mortgage lender.”
Short for financial technology, “FinTech” is the latest buzzword taking Silicon Valley by storm. It basically describes any financial company harnessing the power of the Internet to conduct business more efficiently.
Quicken claims it took more than 500 Detroit-based developers and various other employees some three years “to completely redesign the highly complex mortgage process.”
What Is Rocket Mortgage?
I took it for a spin this morning but only made it so far before I was asked to enter my social security number. That’s when I closed the browser and gave up.
But it’s basically a very involved online mortgage application that asks all the important questions to determine if you’re eligible for a mortgage.
It seems Quicken wants to get you approved for a mortgage using just the online form, and will actually make it happen with an e-signature to seal the deal.
But first you need to sign up with Quicken Loans to access the online questionnaire.
Then you’re asked to answer many, many questions, including queries about the subject property and details about yourself, such as what you do for a living, what assets you have, and so on.
At the end of the process they run your credit and then let you know if you’re approved for a mortgage with Quicken Loans. You’ll be able to see all three of your credit scores and your three-bureau credit report online.
Find Out If You’re Approved in Minutes
If it’s a refinance, they will display your current monthly payment, which you provided, and the new proposed monthly payment.
Import Documentation Online and Lock Your Rate
From there you’ll also be able to lock in your mortgage rate so it’s guaranteed. Then simply complete a “to do list” by a certain date and you’ll be all set.
Rocket Mortgage also allows you to import asset, income, and property information online thanks to “numerous partners and databases throughout the country.”
It sounds kind of like Turbo Tax where you can sign in to certain accounts and have the information imported directly into the application.
This should reduce the headaches of incomplete paperwork and missing pages that often need to be re-sent over and over again.
You’ll also be able to view all your loan details and documentation online or on your mobile device to keep track of your progress.
All in all, it appears that Quicken wants to keep up with all the tech-minded debutants entering the mortgage space while also appealing to a new generation that demands instant gratification and doesn’t want to talk to anyone.
However, I think there will always be a place for traditional face-to-face correspondence in the mortgage world seeing how important and complex it is for most folks.
And like other tech-based solutions, Rocket Mortgage will only be successful if borrowers’ answers are honest and accurate.
At the end of the day, it’s recommended that you still shop around as opposed to taking the easiest route to a mortgage.
While convenience is great, a lower mortgage rate with fewer fees is much better, even if it takes a little more time and legwork.
Quicken Rocket Mortgage FAQ
Can I really get a mortgage in 8 minutes?
No, but you can get approved in that amount of time, supposedly. It still takes several weeks to process and close your mortgage as it would anywhere else because items like an appraisal need to be ordered.
So how is Rocket Mortgage different?
Quicken says the process is unique because it’s conducted entirely online, which differs from the typical mortgage process that requires in-person or phone communication.
Are Rocket Mortgages fully underwritten?
Yes, with information verified by trusted partners as opposed to collecting paperwork from the borrower. Loans are underwritten to agency guidelines.
Does this make Rocket Mortgage more accurate?
Quicken says Rocket Mortgage is more accurate because all the underlying borrower information is verified/shared in real time and imported direct from the source, as opposed to relying on estimates or documents from the borrower that aren’t up-to-date.
Are rates lower on Rocket Mortgages?
That I don’t know and it will always vary. The best way to find out is to shop around and compare their rates to those of other lenders. I looked up Rocket mortgage rates the other day and saw they were offering a rate of 3.875% on a 30-year fixed whereas Bank of America had an advertised rate of 4%. So they might beat out the other big banks slightly, but some smaller direct mortgage lenders were offering rates as low as 3.75% on the same day.
Is it easier to qualify for a Rocket Mortgage?
Probably not. The process might be quicker, but if you don’t qualify for a mortgage, you probably won’t qualify for a Rocket Mortgage either because the same guidelines are used.
Do I get an account rep if I apply via Rocket Mortgage?
You can do everything online on your own, but if you wish to contact someone at Quicken you can speak with a “Home Loan Expert” via phone or online chat.
What happens after I’m approved for a Rocket Mortgage?
You submit the necessary documentation via Quicken’s online tool, known as MyQL, using a document upload feature to avoid faxing and mailing items.
Can you get a jumbo loan via Rocket Mortgage?
How does Rocket Mortgage calculate your loan amount?
Once you input all your information, it asks how much of your verified assets you’re willing to use for the home purchase to determine the max loan amount. This can be adjusted up or down depending on how much you want to borrow.
Is Rocket Mortgage safe?
Quicken claims it’s secure because they use bank-level encryption and 24/7 security monitoring.
How much has Quicken funded via Rocket Mortgage so far?
Quicken said it did $7 billion of its record-breaking $96 billion in 2016 loan volume through Rocket Mortgage. Expect that share to rise over time.