Cranston, RI · Member since 2017 · 64 posts · 22 votes
Im looking for a loan to get for my first property and time is of an essence.i just wanted to get an idea on the loans from rocket mortage from the experienced individuals on biggerpockets.
I am a Real Estate Agent and I am going to second the opinion that @Caleb Heimsoth shared. I had one client who didnt heed our advice on avoiding Rocket Mortgage, mentioned that they ran their business out of the home, and accrued and addition $10,000 in fees/points on the loan. Sometimes the local lender may be sightly more expensinve on the interest rate (not even always the case) but their local knowledge is super helpful.
Also just an FYI in our market you can use the pre-approval of any lender when you submit an offer and then change your lender or commit to someone else after shopping around. most lenders can also provide a pre approval letter in like 15-30 mins. Don't let anything that you mentioned above stop you from following through on a great deal. Make the offer with the preapproval rocket mortgage gave you and then change the lender after.
Let me know if you have any questions and talk to your local real estate agent to make sure that flies where you are =)
Unfortunately, I had the same experience as @Daniel Kong. I needed a quick closing so I called them. Promised they could close in 2-3weeks and rate was competitive. It was a literal bait and switch. No change in any of our docs or circumstances but the fees and actual interest rate increased with NO explanation as we moved forward. I immediately contacted another lender.
Another caution about Rocket Mortgage. They brag that "we'll pre-approve you in 8 minutes".
Baloney.
Until any lender has run your credit and reviewed the supporting documents (bank statements, W2s, pay stubs and tax returns), they have no idea whatsoever as to whether you can qualify for a loan or not.
What they will give you in 8 minutes is called a pre-qualification, not a pre-approval. It essentially says that if everything you've told us so far checks out, you can borrow $XXX,XXX.
A sharp seller's agent will call the lender and find out whether the lender has done their homework prior to accepting the offer.
I recently had a pre-approval from Quicken for a client at $380,000. They had a home at that price that they just fell in love with. I cautioned them about trusting the pre-approval as they had not yet submitted those docs.
Sure enough, I got the call from the loan officer. Can't do $380,000. We can do $220,000, because one of the buyers was a contract employee, not a W2.
I tried to do a cash out about 3 months ago on a property I owned free and clear with Quicken which is Rocket. To get $75k, (I only wanted 60 but they won’t do under 75), would have been $4500 fees plus $1500 escrow, and pay down $6000 in CC debt. I went with a small local bank, got my $60k, 28 days, total fees $885. So $12,000 total fees/out of pocket with Quicken vs $885.... no thank you Quicken.
@Kendrick Salazar for quicken/rocket if you are planning on using them for brrrr I’d recommend straying away they work great for single family turn key with no issues. I work for quicken and if you want to refinance after the repairs are done they are great. But for prior repairs local credit unions are the best fit for what we do for brrrr
I started my career as an LO here. Good for clean cut clients. Rates steadily higher. It’s a spot that a lot of college and new loan officers start. Not a ton of training and you could get someone 3 months of experience or 13 years.
Also, they only have loan officers trained to know what they need to know.. nothing more.
@Adeva Edobor I'm glad to hear that and I'm sure there are exceptions out there. They used to be better - I think its in the last few years they have started to turn downhill. It also stinks as their banking and car loan services are so amazing!!
@Andre' Arceneaux yeah... all I can speak to is our experience with them but it has been rough the last two years.
@Andrew Webber that surprised me, because I have some accounts there, experience has been good overall so far, yet nothing in the opinion related to a mortgage/property loan, yet.