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.
Their website has several easy-to-use mortgage calculators to help you decide how much home you can afford. Rocket Mortgage is one of the best FHA lenders and is an affordable and flexible payment option for first-time homebuyers. It is also one of the largest brokerages for VA loans, low cost home loans for veterans and their families.
Rocket Mortgage
Rocket Mortgage offers an option called Overnight Underwrite, a fast and reliable approval tool for securing home purchase loans. It works similarly to a pre-approval letter, but actually delivers full approval from the lender in less than two hours. For example, if you upload all your documents by 7pm EST, you will have full approval by the next morning. If you go through a verified approval process and your loan is not closed due to Rocket Mortgage’s review of your money, you will pay $1,000.
Everything you need to know about Rocket Mortgage and mortgage offers.
What types of mortgages does Rocket Mortgage offer?
Rocket Mortgage offers most home loans and is one of the largest online mortgage lenders in the United States. The full list includes:
Minimum Credit Score for a Rocket Mortgage
The minimum credit score for Rocket’s existing mortgages is 620 and for Megarons it is 680. With Rocket Mortgage, you can get an FHA or FHA loan approval with a score of 580 or lower.
Minimum Down Payment Requirements for Rocket Mortgages
Rocket Mortgage’s down payment requirements are the same as standard for all home loans. The requirements for each type of loan are:
What are the terms, fees and conditions of Rocket Mortgage?
Rocket Mortgage charges most of the usual fees that all lenders do, but there is no fee that locks in a 45-day interest rate. Stabilizing interest rates can help, especially as interest rates are rising and expected to continue rising through 2022. Even tenths of a percentage point can add tens of thousands of dollars over the term of a loan.
However, extending the interest rate for an additional 15 days (you can do it twice) will cost you 25bps. In other words, the mortgage interest rate rises by 0.25%. Some lenders offer free flow to lower fixed rates when interest rates fall, but Rocket Mortgage doesn’t offer this as a standard feature. Alternatively, Rocket Mortgage offers a product that allows you to lock in your interest rate for 90 days before finding a home. This includes 1 free flow but costs 1 bp.
The online mortgage mogul also charges a $500 home appraisal deposit, which will be used to pay the appraisal fee when the new home is closed at the end of the transaction.
In addition to certain lender fees, there are other standard fees and fees associated with buying a home. Some of the more common ones are:
What discounts does Rocket Mortgage offer?
Like most lenders, Rocket Mortgages offers the ability to lower interest rates by purchasing mortgage points upfront. If you could pay cash for your points, the interest rate on the entire loan would be lower, saving you tens of thousands of dollars over the term of your mortgage.
Can I refinance with Rocket Mortgage?
Yes, Rocket Mortgage offers home refinancing. You can complete a cash refinance or a standard term interest rate loan.
Where do rocket mortgages work?
Rocket Mortgage operates online in all 50 US states. Although the company itself does not hire mortgage brokers, it works with thousands of independent mortgage brokers across the country, many of which have physical branches you can go to for a personal experience.
Questions and Answers
How long does it take to apply online through Rocket Mortgage?
Rocket Mortgage has a proven approval process called Overnight Underwrite that allows you to approve your mortgage in less than two hours.
Does Rocket Mortgage Announce Interest Rates Online?
Rocket Mortgage advertises daily interest rates online, but an individual’s interest rate always depends on an individual’s financial situation. Your credit score is an important factor in determining your interest rate, so you should pay off high-interest debt, such as credit card debt, before you start looking for a home.
There are no hard credit withdrawals when searching for regular Rocket Mortgage rates or pre-qualifying, but authorization or verification requires a lot of credit.
How many days does it take to close a house with Rocket Mortgage?
Closing a new home with Rocket Mortgage can take up to 8 days, which is a very fast closing process. On average, the closure process takes about 26 days, but this depends on the market in which to buy a new home. Especially in a hot market, you should expect it to take more than a month to close your home, regardless of the mortgage lender you work with.
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CNET reviews mortgage lenders against a variety of criteria, including the types of loans offered, credit score requirements, down payment requirements, features, terms and fees, discounts offered, accessibility, and refinancing options.
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