What are Rocket Mortgage's pro and cons?

Buying & Selling Real Estate
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What are Rocket Mortgage's pro and cons?

Jamiru Mutebi
Member since 2023 · 26 posts · 14 votes

Has any of you used Rocket Mortgage for a a HELOC or HELoans here? If so, would you mind sharing some of your experience please?

Better still, what other mortgage companies would recommend especially for new investors?

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Ryan Muska
Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes
3y

Typically I do not recommend working with a large lender as you are just a number to them and they will also only provide their loan options to you. 

I always recommend working with a mortgage broker because they work with many companies and can give you a plethora of options. 

As far as Rocket Mortgage, specifically, I have worked with many clients who have tried to go through them and been given awful customer service. Although, sometimes they have great service. So, just know you can have both sides of the spectrum

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  • Ryan Muska
    Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes
    3y

    Typically I do not recommend working with a large lender as you are just a number to them and they will also only provide their loan options to you. 

    I always recommend working with a mortgage broker because they work with many companies and can give you a plethora of options. 

    As far as Rocket Mortgage, specifically, I have worked with many clients who have tried to go through them and been given awful customer service. Although, sometimes they have great service. So, just know you can have both sides of the spectrum

    1Reply
  • Jamiru Mutebi
    OP
    Member since 2023 · 26 posts · 14 votes
    3y

    Thank you @Ryan Muska

    1Reply
  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    3y
    I've been out of real estate for a few years and maybe things have changed, but Rocket Mortgage pre-approvals were absolutely worthless when I was selling real estate.  

    That's because they ask the buyer a few very basic questions about income and debt and then shoot out a pre-approval.  They have not reviewed any of the supporting documents that are required for a pre-approval that's genuine.  They need to see pay stubs, verify employment, run credit, etc - and they haven't done any of that.

    I remember a family that had a pre-approval from Rocket Mortgage for $400,000.  We found a house that was perfect for their large family.  We wrote an offer that was accepted and they were over the moon excited.

    Fast forward.  Rocket Mortgage starts their underwriting and suddenly reduce the amount of the pre-approval from $400,000 to $200,000. The deal blew up.

    The buyers were crushed and I had wasted a LOT of time, running around showing them several houses.  From that point forward, I would no longer work with clients unless they had submitted all of those supporting docs and only then got a pre-approval.

    Again, maybe things have changed in the last 3 years since I got out of the real estate business, but that was my experience.
    1Reply
  • Jamiru Mutebi
    OP
    Member since 2023 · 26 posts · 14 votes
    3y

    Hi @Charlie MacPherson

    Thank you for sharing, I am an aspiring investor just trying to get some equity from my primary home either via a HELOC or HELoan to invest in an investment property as suggested by some members in other platforms. However your experience is a lesson I sure will be mindful of in this journey.

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  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    3y

    I've heard far more horror stories than I have positive things. What Charlie described pretty much sums it up.

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC520 Reviews
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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    3y

    As others said it's best to stay away from large lenders like that. They are not great in communication, have higher closings costs than normal. It's always better to find a local person who will do you better service.  

    1Reply
  • Jamiru Mutebi
    OP
    Member since 2023 · 26 posts · 14 votes
    3y

    Thank you @Brittany Minocchi and @Caleb Brown

    1Reply
  • Doug SmithPro Member
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    3y

    ...do you mean the Zillow of the mortgage world? A lot of mortgage people like working with them, but we won't. I'm not interested in their retail shop back-soliciting any clients we might run through them. "The trees in the forest think the axe is their friend because it's handle is made of wood and, thus, it must be one of them". I know I'll get hate posts for this, but I don't trust them as far as I can shot put them. 

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