Review of Quicken Loans
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Quicken Loans, located in Detroit, Michigan, is a mortgage lending company founded in 1985 by billionaire entrepreneur Dan Gilbert. Gilbert, who also owns the Cleveland Cavaliers, had a public spat with LeBron James before reconciling with him.
Today, Quicken Loans is the largest online retail mortgage lender in the United States, having originated over $400 billion in mortgages across all 50 states since 2013.
Quicken Loans, famous for its innovative way of giving out home loans, uses a smartphone app to let people apply and get approved right from their homes. If you need a new mortgage or want to change your current one, Quicken Loans probably has good options for you. Unlike regular banks with physical locations, Quicken Loans handles all its mortgages online.
In August 2020, Rocket Companies, Quicken Loans’ parent company, had an initial public offering, trading shares on the New York Stock Exchange under the ticker symbol “RKT.”
Quicken Loans Service Offerings
As of August 2020, Quicken Loans offers users three key services:
- Refinancing current house mortgages and debt consolidation.
- Getting a new mortgage for your permanent residence, vacation home, or real estate investment.
- Home loans made with existing mortgages as security, often known as “home equity lines of credit” (HELOC).
Quicken Loans provides mortgage rates on its website, which are updated almost daily and show the interest payable on loans. The current rates vary from 2.625% on a 15-year fixed-rate mortgage to 3.383% on a 30-year fixed mortgage.
A simple calculator on the Quicken website will help you quickly calculate monthly payments for new or refinanced mortgages. Additional calculators can be accessed via a dropdown tab on the company’s homepage.
Quicken Loans offers discounted interest rates to military veterans and loans insured by the Federal Housing Administration (FHA), with a focus on customers with a credit score of 580 or better who can make a 3.5% down payment. Quicken Loans also offers “Jumbo Loans,” which range from $500,000 to $2 million and require a minimum 20% down payment. Jumbo loans often have higher interest rates than other forms of mortgages.
Fees and Terms
Quicken’s website provides direct access to the displayed mortgage rates, which are subject to change. Mortgages are typically issued with fixed-rate terms, which ensure steady interest rates over the course of the loan. Quicken does, however, offer “Adjustable Rate Mortgages” (ARMs), in which the interest rate is locked for a set period of time before potentially increasing based on current rates. Quicken Loans guarantees that interest rates on ARMs will not rise more than 5% above the original rate during the life of the loan.
Quicken Loans has an online “Learning Center” with instructive articles that walk users through the mortgage process, including discussions about associated expenses. Closing costs for a mortgage include expenses such as title fees, recording fees, appraisal fees, and taxes, among others. Though Quicken does not indicate the precise amount for each fee, financial experts recommend setting aside $5,000 to $10,000 to cover average closing costs.
How It Works
Quicken Loans prioritizes speed and convenience by managing the mortgage application process entirely online via its website or the Rocket Mortgage app. This strategy is intended to save time, money, and paperwork. Applicants can start their mortgage application on the Quicken website, through the Rocket Mortgage app, or by calling the company’s 1-800 number.
The application procedure comprises completing a series of questions and giving basic financial information to quickly determine eligibility for a mortgage or refinance. While additional specific financial documents may be necessary to complete the process, the initial application is short, easy, and easily accessible via the user-friendly website and smartphone interfaces.
Personal and contact information, financial condition, employment data, loan choices, savings, and collateral information are all required. Quicken Loans claims that mortgage approval usually occurs within a week, with the complete process, from application to loan setup, lasting up to 45 days.
Borrower Requirements
Prospective borrowers must provide Quicken Loans with certain information, such as access to credit reports displaying credit scores and outstanding debts, proof of employment or income (pay stubs and tax returns), a list of assets, and, in some situations, a criminal record check. Mortgage eligibility and loan terms are determined by the information submitted, with candidates with higher credit scores and financial profiles receiving preferential treatment.
Pros and Cons
Pros:
- Simplified mortgage process, reducing the complexity associated with traditional lenders.
- User-friendly online applications reduce paperwork, increasing convenience.
- Competitive mortgage rates comparable to those provided by reputable lenders and banks.
Cons:
- In comparison to traditional lenders and banks, there is a limited product choice.
- There are no complete banking services available, as is characteristic of larger financial organizations.
- The entire process is managed online or over the phone, so there is no face-to-face interaction.
Review and Accolades
Quicken Loans receives various industry honors, which it proudly displays on its website, including J.D. Powerful customer satisfaction accolades, as well as Fortune magazine’s “100 Best Companies To Work For” award. Quicken Loans is accredited by the Better Business Bureau and the Equal Housing Opportunity Association, and it has received customer service awards from the United States. News and World Report, and online evaluations generally express positive feelings about the organization and its methods.
Summary
Quicken Loans may well be the largest home loan company in the United States and for 35 years now, the company has actually been delivering great services. It also fulfils the requirement for those people who are in need of new home loans or those who wish to switch from their current ones. They provide reasonable interest rates and provide convenience to its consumers in the way they issue loans through their online platforms. In some ways, they are not as versatile as the conventional banks which provide customers with a comprehensive set of services but, in the areas they cover, they are effective.
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