Frequently Asked Questions about Rocket Mortgage

Rocket Mortgage is a branch of Quicken Loans, one of the largest mortgage lenders in the United States.

It has helped many people finance their homes, by offering online applications and pre-approvals to qualified borrowers.

rocket mortgage
Image from Rocket Companies

Here are some frequently asked questions about home loans offered by the company.

Why Did Quicken Loans Change to Rocket Mortgage?

When Quicken Loans announced on July 31, 2021, that it was changing its name to Rocket Mortgage, it wasn’t just making a cosmetic change.

The company, which has been a technology-driven lender in recent years, says the new name more accurately reflects what it does.

“Rocket Mortgage defines what we do best…” a statement from the company indicates.

So now the company is renaming itself Rocket Mortgage to better communicate what it does best — take a complicated process and make it simpler using technology.

Source: Rocket Mortgage | Quicken Loans Name Changing To Rocket Mortgage

Why Didn’t I Get a Result from Rocket Mortgage?

If you’re looking to buy a home but have been denied a mortgage, don’t worry – you’re not alone.

Millions of Americans have been denied a home loan at some point in their lives. The good news is that there are still plenty of ways to get it, even if you’ve been denied in the past.

The first step is to figure out why you were denied.

Credit issues are the most common reason, but they’re not the only one. You may also be denied if you don’t make enough money, if you’ve changed jobs recently, or if you’ve made a large deposit that can’t be explained.

Once you know the reason for your denial, you can start taking steps to fix it.

If you need to improve your credit score, work on paying down any outstanding debts and avoid taking on new ones. Get a copy of your credit report and fix anything that’s incorrect or outdated.

If your problem is income, look into ways to increase it: take on overtime hours or pick up a part-time job.

Source: How Often Do Underwriters Deny Loans? | Rocket Mortgage

Why Doesn’t My Rocket Mortgage Home Loan Show on Credit Yet?

If you’re a homebuyer who’s been anxiously waiting to see your new mortgage on your credit report, you may be wondering what’s taking so long.

Don’t worry — it’s probably just a reporting delay.

Most people don’t see their new or refinanced loan on their credit report for 30 to 90 days. And if you bought a home during the busy spring or summer season, you may have to wait even longer.

So if you don’t see your loan after a month or two, don’t panic. Contact your lender and the reporting agency to ensure all the pertinent details of your loan are in their records.

If you suspect there’s been a mix-up, contact them and ask what you should do.

When everything is in order, your loan should appear on your credit report.

There’s usually no reason to check your credit report for new loans since they’re added automatically. But it can’t hurt, especially if there’s been a reporting error so you don’t have any surprises when you apply for another loan in the future.

Source: Why Your Mortgage Isn’t Showing Up on Your Credit Report | MACU

Why Does Rocket Mortgage Do a Hard Inquiry Without Telling You?

When you’re preapproved for a mortgage, it can ding your credit score – but only temporarily.

The lender runs a hard inquiry on your credit score to make sure you’re qualified for the loan they’re offering. But, this won’t last long and won’t impact your ability to get loans in the future.

So long as you keep up with your monthly payments and keep your credit card debt low, your score will bounce back quickly.

If you’re planning to buy a home in the near future, getting pre-approved is an important step. It shows sellers that you’re a serious buyer and could speed up the process when it comes time to make an offer.

Source: Does Getting Preapproved Hurt Your Credit? | Rocket Mortgage

Why Does Rocket Mortgage Have Such High Closing Fees?

When choosing a mortgage, it’s important to understand all of the associated costs.

One such cost is the closing fee, which can be higher depending on various aspects.

First, high closing costs can be charged if you choose to buy discount points. This type of point reduces the interest rate but results in a higher upfront cost.

The average closing costs are between 3%-6% of the purchase price. If you are purchasing a $300,000 house, for example, you might pay between $9000-$18,000 in closing costs.

Additionally, the list of fees is longer since buyers will also have to pay for various inspections and appraisals. In some cases though, sellers will cover certain aspects such as real estate commissions that can be as much as 6% of the purchase price.

Thus, the seller usually covers the majority of closing costs.

All fees are paid in cash at closing.

source: Closing Costs: What You Need To Know | Quicken Loans

Why Does Rocket Mortgage Want to Connect to My Bank Account?

When you’re buying a home, it’s important to have all your ducks in a row.

Rocket Mortgage® is making it easy for you to connect to your bank account and import your income and asset information. With this integration, you can save time on the paperwork.

You’ll likely be asked to provide recent statements from any account with readily available funds. The lender wants to know that you’ll be able to afford your down payment and make your monthly payments.

Source: Why Does My Mortgage Lender Need My Bank Statements? | Quicken Loans

What Credit Bureau Does Rocket Mortgage Use?

Rocket Mortgage uses all three credit bureaus: Experian, Equifax and TransUnion.

The three national credit reporting agencies collect information from lenders, banks and other companies, compiling it to form your credit score.

There are many ways to calculate your credit score, but the most well-known models are FICO and VantageScore.

The higher your score, the more likely you’ll be approved for a loan. If you want to buy a home, it’s important to keep tabs on your credit report.

The FICO® Score and VantageScore® models calculate your credit score based on such categories as: credit history length, credit mix, payment history, active accounts and credit utilization.

If you have no credit or are new to borrowing, your score will be lower than someone with a long track record of responsible money management.

Source: Getting Approved with Rocket Mortgage: Behind the Numbers

How Long Does Rocket Mortgage Pre-Approval Take?

If you’re in the market for a new mortgage, then you’ll want to check out Rocket Mortgage®.

They offer a Prequalified Approval process that can be completed within 24 hours. This is a good way to figure out how much home you can afford.

Rocket Mortgage verifies your credit score and income/ assets. This involves submitting documentation to get a letter stating that you’ve been approved.

Other lenders usually take about a week to pre-approve the home buyer. The good news is that lenders are continuing to make it easier for people who need financing for a house.

Source: How Long Does It Take To Buy A House? | Rocket Mortgage

What Credit Score Does Rocket Mortgage Use?

What credit score is needed to buy a house with Rocket Mortgage?

The answer, however, can be varied, as the credit score requirements for a conventional loan and a government-backed loan are different. Preferably, a conventional loan typically requires a credit score of 620 or higher, while an FHA loan requires a score of 580 or higher.

Why do conventional lenders assess you differently than government-backed loan providers?

Conventional loans typically require higher credit score minimums than FHA loans because FHA loans are insured by the Federal Housing Administration (FHA). And, it is this insurance that allows for some leniency in credit scores.

Potential home buyers who don’t meet these credit score requirements might get a higher interest rate.

Many factors are taken into account when determining your credit score, like the number of open accounts you have, whether you pay bills on time, and how much available credit you have.

Source: What Credit Score Do You Need To Buy A House? | Rocket Mortgage

How Does Rocket Mortgage Make Money?

Lenders help borrowers finance the purchase of a home by issuing a mortgage.

Hence, a lender like Rocket Mortgage typically makes money in three ways: by charging fees for writing mortgages, collecting payments on the loans, and providing extra services such as title insurance and real estate agent services.

Source: The Investor’s Guide to Rocket Mortgage (yahoo.com)