Rocket Mortgage – Doing your research and taking the time to examine your mortgage rate possibilities is more crucial than ever as interest rates rise and the property market becomes more competitive.
The largest online retail mortgage company in the US is Rocket Mortgage. On its website, this online lender provides a multitude of informative materials to help customers better comprehend the mortgage and home-buying procedures.
How Rocket Mortgage Works
Overnight Underwrite, a quick and acceptable means of securing a mortgage, is offered by Rocket Mortgage. It works similarly to a preapproval letter and grants full lender approval in as short as two hours. For instance, if you upload all of your supporting documents, you can receive full approval the next morning.
Pros
- A 45-day interest rate lock is free of charge.
- The underwriting procedure is rapid and effective, and confirmed approval is provided.
- Condominiums are eligible for FHA loans, which is uncommon.
Cons
- It has no physical branches but instead works with independent brokers who are physically present.
- Interest rate locks that prevent free decline
- HELOCs and USDA loans are not permitted.
Types of Mortgages Rocket Mortgage Offer
One of the biggest online mortgage providers in the US, Rocket Mortgage offers the majority of home loan kinds. Its complete list contains:
- Loans from Veterans Affairs (VA)
- FHA (loans from the Federal Housing Administration)
- Conventional
- Jumbo
- ARMs (Adjustable-Rate Mortgage loans)
- Refinance
Minimum Credit Score for Rocket Mortgage
Rocket requires a minimum credit score of 620 for standard mortgages and 680 for jumbo loans. With Rocket Mortgage, you may obtain an FHA or VA loan with a credit score as low as 580.
Rocket Mortgage Minimum Down Payment Requirements
The Rocket Mortgages down payment requirements are the same as the criteria for any other home loan. Following are the specifications by loan type.:
- No minimum down payment is necessary for VA loans.
- 5% minimum down payment necessary for FHA loans
- conventional loan: 3% minimum necessary down payment
- 10% minimum down payment needed for jumbo loans
Rocket Mortgage’s Terms, Fees and Conditions
The majority of standard fees levied by lenders are charged by Rocket Mortgage, although there is no price for locking in an interest rate for 45 days. Especially now that interest rates are rising and are anticipated to continue doing so until 2022, locking in your rate can be beneficial. Over the course of your loan, even a tenth of a percentage point can add tens of thousands of dollars.
The fee to extend your rate for an additional 15 days (which you can do twice) is 25 basis points, which translates to a 0.25% increase in your mortgage rate. Rocket Mortgage does not include a free float-down feature, which some lenders offer that allows you to lower your locked interest rate if rates fall, as a normal feature. Instead, Rate Shield from Rocket Mortgage lets you lock in an interest rate for 90 days prior to finding a property. This program does provide one free float down, but it will cost you 1 basis point.
Other common charges and fees related to buying a property exist in addition to specific loan fees. The most typical ones include:
- Home Appraisal
- Title insurance
- Lawyer fees
- Taxes
- Homeowner’s Insurance
A fee of about $500 deposit is also required for home appraisals by this online mortgage behemoth; this money is intended to cover the cost of the appraisal when you close on your new house.
Rocket Mortgages Offer
Rocket Mortgages gives you the option to buy down your interest rate by paying for mortgage points up advance, just like the majority of lenders do. Your interest rate will decrease if you can afford to pay cash for points, saving you tens of thousands of dollars over the course of your mortgage.
Where Is Rocket Mortgages Office Located?
All 50 US states have online access to Rocket Mortgage. Despite not having any in-house mortgage brokers, the company collaborates with thousands of independent mortgage brokers across the nation, many of whom have physical locations you may visit for a face-to-face encounter.
Frequently Asked Questions (FAQs)
Can You Refinance with Rocket Mortgages?
Yes, Rocket Mortgage does provide refinancing for mortgages. You can complete a normal term rate finance or a cash-out refinance.
How Long Does It Take to Apply Online for Rocket Mortgages?
Rocket Mortgage’s Overnight Underwrite verified approval procedure will approve you for a mortgage in as little as two hours.
Does Rocket Mortgages Offer Discounts?
Rocket Mortgages gives you the option to buy down your interest rate by paying for mortgage points up in advance, just like the majority of lenders do. Your interest rate will decrease if you can afford to pay cash for points, saving you tens of thousands of dollars over the course of your mortgage.
All 50 US states have online access to Rocket Mortgage. Despite not having any in-house mortgage brokers, the company collaborates with thousands of independent mortgage brokers across the nation, many of whom have physical locations you may visit for a face-to-face encounter.