I did a search on bigger pockets about Quicken loans and was unable to find a thread.
My question is, have you ever used Quicken loans for financing deals? If you did, how did it go and what is your opinion. Thanks.
Quicken Loans is a big bank here in the Midwest. It is owned by Dan Gilbert who also owns the greatest basketball team in the world, the Cleveland Cavaliers.
One of my rentals has a mortgage with Quicken Loans. They are like most other big banks and so keep that in mind when using them. They are great to deal with after the loan is closed but aren't as flexible as smaller local banks or credit unions when it comes to getting the initial deals done.
I second the comment on the Cavs!
If I may ask a somewhat related question, is it recommended to go with smaller banks for earlier (or the first) deals you do? What is an example of the flexibility that a smaller bank would provide?
I have not dealt with Quicken Loans.
I refinanced my primary home (Duplex) with Quicken Loans 1 1/2 years ago. I had a good experience. Not sure about investment loans with them though.
Thank you all for the responses. As a beginner. i'm currently searching for a lender that would fund my small loans until i am able to afford more house. I thought Quicken may be a good fit considering they finance loans $50k and up.
Thank you again.
I just closed my first deal with them. They were able to close in under a month, very professional staff and easy to deal with (everything is online and well documented, probably a good idea for a first timer). Regarding closing costs, I suspect they may be on the higher end, but may be worth if looking for a smooth deal.
I am considering them.
Ive closed 62 deals with them in the past 3 years.. I can send you a name of a good loan officer there whom can assist, if you'd like..
Being a preferred agent referral partner of theirs, I think you'd get at least a $750 closing cost credit if I give them your name
I am looking at properties in Iowa but haven't decided on one yet. Would they take a piece of land as collateral for some or all of the down payment?
I am not gonna lie I'm a little nervous about this, not the fact of getting my business going but I'm still not educated enough and don't want to screw up.
Quicken Loans is generally not the best option. Find a local lender. I have given Quicken Loans several opportunities to beat rates & terms with my local lenders and they never can. I typically put 20% down on initial financing of deals. Quicken Loans attempts to draw you in with saying they can beat the rate of other lenders all day long; its a big sales pitch they train their staff with. They do this by modifying the down payment to 25% when quoting you the rate and loan fees so it sounds as if they are matching or beating the competition, but the terms aren’t the same. Always take caution when using a company that spends as much on marketing & advertising as Quicken Loans does. It just drives up overhead costs that eventually have to be offset by higher prices or higher volume of sales. This doesn’t necessarily translate to be the best deal for the customer.
The problem I have with Quicken Loans and Rocket Mortgage (owned by Quicken) is that they give out pre-approvals BEFORE reviewing supporting documents like bank statements, W2s, tax returns and pay stubs. These are sometimes called "pre-qualification" letters.
Until those supporting docs are reviewed, they have no idea whether you can actually buy a property or not.
In fact, Rocket Mortgage has a TV ad campaign where they state "We can pre-approve you in 8 minutes". Baloney.
Case in point: I was recently contacted by a buyer with a $380,000 pre-approval from Quicken. I called the loan officer and asked whether they had received and reviewed those documents. He said that they had not.
I advised the buyers of that we really didn't know how much they would qualify for - and then we went to see a property that they were interested in. And they fell in love with it.
Fast forward a bit - the loan officer called me and said that after reviewing the file, that $380,000 was actually going to be $225,000. They were only off by $155,000.
As a seller or seller's agent, it's crucial to dig deep with the lender before entertaining an offer. If the lender hasn't already reviewed the supporting documents, it's unwise to take your property off the market.
I don't find them competitive for investment properties in terms of fees. I have excellent credit and cash and they just quoted me at 2.5 points, plus underwriting fees plus other fees. The rates were lower however.
For a 75k loan my lender costs were at 3700. I got half that with a local credit union.
I have my personal residence with quicken also and have taken 3 loans with them over the years for other houses i lived in. So Im not a new customer.
I spoke with Quicken Loans banker today because I'm researching financing options for my first out of state rental. The banker was informative and I learned about "recasting" which I never heard of before (and like the possibility of having that option), yet the conversation left me with more questions than answers. I asked 3x for the estimated fees / expenses that would be involved and each time the conversation was twisted in another direction to go off topic. If I don't know how much this loan is going to "cost" me, then I have nothing to go on and I'm on to the next. Anyway, just sharing my experience.
I spoke to a Quicken Loans banker today and I asked them if they'd make a loan to an LLC for an investment property purchase. Tim told me that they don't make loans to LLC but suggested that we get the loan under our personal name and move it to an LLC later. I have to hand it to them though, they're quite the hustlers.
I got one of those Quicken prequal letters with an offer today...it clearly states they ( the potential buyers) have not provided proof of income or assets...I guess all Quicken did was run a credit check ( if that) ...how does that make a buyer in any way qualified to make an offer...why don't they get qualified by providing the necessary financial documents and THEN go out and make offers and stop wasting folks time...ok rant over :)
@Eric Schultz , when you say contact a local lender, are you talking about out-of-state properties? Do local banks and credit unions loan to someone from out of state? Also, I've heard that these smaller institutions often don't understand the business of investor loans and will slow down the process and often not complete the deal on investment properties. Do you have a different experience?
@Jonathan Warner I’ve used a local lender in San Diego to buy out-of-state properties. You might find lenders local to you that deal with investment properties. Many of them are licensed to do business in most states.
Quicken loan just does the same vanilla conforming loans as anyone else. So they're not much better/worse than anyone else.
I saw so many ads for them that I decided to give them a go for my single family home. Primary residence for me. Owned it for 12 years. Never missed a payment. Worth 2x+ what I owe. Was looking for term refi only (no cash out).
They couldn't do it (like many REI, my tax returns don't look great).
So here I am with liquidity that's 5x my loan balance, with properties that cash flow my loan balance in a few months, and I was denied. I knew that would happen going in but I tried anyway since it didn't take very long.
I ended up just paying off my home loan since I had the $ and ironically the rate is higher than any of my recent commercial loans. The only advantage it my SFH loan was fully amortized.