Quicken Loans, headquartered in Detroit, Michigan, was established by billionaire entrepreneur Dan Gilbert in 1985. Gilbert, also the owner of the Cleveland Cavaliers, has been involved in public disputes and reconciliations with NBA star LeBron James. Presently, Quicken Loans stands as the largest online retail mortgage lender in the U.S., having facilitated over $400 billion in mortgages across all states since 2013. Renowned for its tech-driven approach, Quicken Loans utilizes a smartphone app to streamline the mortgage application and approval process, offering convenience to consumers seeking new mortgages or refinancing options. Unlike traditional lenders, Quicken Loans operates without retail branches, conducting all mortgage transactions through its online platform. In August 2020, the company’s parent entity, Rocket Companies, initiated an initial public offering, listing its shares on the New York Stock Exchange under the symbol “RKT.”
What Quicken Loans Offers
As of August 2020, Quicken Loans extends three primary services to consumers:
- Refinancing existing home mortgages, coupled with debt consolidation.
- Procuring new mortgages for primary residences, vacation properties, or real estate investments.
- Home loans leveraging existing mortgages as collateral, commonly referred to as “home equity lines of credit” (HELOC).
Quicken Loans maintains regularly updated mortgage rates on its website, spanning from 2.625% for a 15-year fixed-rate mortgage to 3.383% for a 30-year fixed mortgage. The website features a user-friendly calculator for swiftly estimating monthly payments on prospective mortgages or refinances. Furthermore, additional calculators are available via a drop-down tab on the company’s homepage.
Quicken Loans offers discounted interest rates for military veterans and FHA-insured loans, catering to individuals with credit scores of 580 or higher who can afford a 3.5% down payment. Additionally, the company provides “Jumbo Loans,” ranging from $500,000 to $2 million, requiring a minimum 20% down payment. Jumbo Loan interest rates typically trend lower compared to other mortgage options.
Fees and Terms
As previously mentioned, Quicken’s website prominently displays its posted mortgage rates, which are subject to daily fluctuations. The majority of their mortgage offerings feature fixed-rate terms, ensuring a stable interest rate throughout the loan’s duration. However, Quicken also offers Adjustable Rate Mortgages (ARMs), where the interest rate remains fixed for a set period before potentially adjusting based on prevailing rates. Quicken assures that the interest rate on ARMs won’t exceed a 5% increase from the original rate over the loan’s lifetime.
Quicken Loans hosts an online “Learning Center” housing an array of informative articles aimed at guiding individuals through the mortgage process, whether it’s their first time or they’re refinancing an existing loan. These resources also delve into the various fees associated with home purchases, including title, recording, appraisal, credit report, pest inspection, attorney, tax, and surveying fees. While Quicken doesn’t specify the precise costs of each fee, financial experts generally recommend budgeting between $5,000 to $10,000 for typical closing expenses. Additionally, applicants typically need to make a down payment on their desired property, ranging from 3% to 20% of the home’s price. Nevertheless, Quicken offers mortgage options requiring no down payment for eligible customers.
How It Works
Quicken Loans is committed to speed and convenience. As previously noted, the company’s mortgage application process is entirely managed online through its website or the Rocket Mortgage app. This digital approach is designed to save time, money, and paperwork. You can initiate a mortgage application on the Quicken website, through the Rocket Mortgage app, or by calling the company’s 1-800 number.
The application process is straightforward, requiring you to answer a series of questions and provide basic financial information. From there, you’ll promptly learn whether you qualify for a mortgage or refinancing. While more detailed financial records are necessary to finalize a mortgage or refinance, the initial application process is as advertised – quick, simple, and easy to complete. The website and app are highly accessible, making it convenient to start and finish.
The information required on the Quicken Loans application includes:
- Name
- Address
- Contact information
- Date of birth
- Social Security Number (SSN)
- Income
- Employment information
- Type of loan sought (including down payment amount)
- Savings amount
- Other collateral, such as owned vehicles
- Information pertaining to any other homes or properties owned
Quicken Loans claims that its mortgages are approved in about one week. However, it can take as long as 45 days for a loan application to be fully processed and the mortgage to be in place. While the online application and pre-approval process are fast, the entire process of securing a mortgage takes about as long as with other lenders.
Borrower Requirements
To secure a mortgage or refinance with Quicken Loans, you’ll need to furnish the company with the aforementioned details, along with additional information, including:
- Access to your credit report, which reveals your credit score and any outstanding debt.
- Proof of employment or income, such as pay stubs and income tax returns.
- List of assets, encompassing bank account balances, investments, personal property, and any owned real estate or vehicles.
- A criminal record check may be required in certain cases.
The information submitted to Quicken Loans will influence the type of mortgage you qualify for and the loan terms offered. Favorable credit reports, strong finances, and ample assets typically result in more advantageous mortgage terms. Conversely, lower credit scores, limited finances, and high debt levels may pose higher risks for lenders, potentially leading to less favorable terms or even loan rejection.
Pros
Quicken Loans revolutionizes the often convoluted mortgage process by offering streamlined online applications that reduce paperwork and hassle. Their user-friendly interface makes it easy to input necessary information and quickly determine eligibility for a mortgage or refinancing. With competitive rates comparable to those offered by traditional banks and other lenders, Quicken Loans provides a convenient and efficient solution for individuals seeking to secure a mortgage or refinance their existing loan.
Cons
Quicken Loans offers a narrower range of products compared to other mortgage lenders and banks, lacking certain services typically provided by larger financial institutions. As a non-bank entity, it does not offer the extensive suite of services found at traditional banks. Furthermore, Quicken Loans operates entirely online or via telephone, without any in-person interactions, which may be a drawback for those seeking face-to-face assistance throughout the mortgage process.
What Others Are Saying
Quicken Loans boasts an array of prestigious industry accolades, prominently showcased on its website. These include multiple J.D. Power customer satisfaction awards and recognition as one of Fortune magazine’s “100 Best Companies To Work For.” Additionally, Quicken Loans holds accreditation with esteemed organizations such as the Better Business Bureau and the Equal Housing Opportunity association. It has also received high praise for customer service from U.S. News and World Report. Online reviews generally reflect positivity toward the company and its operational standards.
In Conclusion
Quicken Loans, the largest mortgage lender in the U.S., boasts an impressive 35-year history of excellence. Whether seeking a new mortgage or aiming to refinance, Quicken is a top contender to consider. With competitive rates and a streamlined process, they offer simplicity and clarity throughout. While they may not offer the full range of services provided by traditional banks, Quicken specializes in mortgages, excelling in this singular focus.