Rocket Mortgage is a super fast service portal of the company Quicken Loans, which caters to self-service users who want to apply for a home loan without talking to loan officers. It’s only a tool that collects information such as pay stubs, bank statements and tax returns to calculate how much money you are eligible to loan, and not a money lender itself, despite being called rocket-‘mortgage’.
Although I wouldn’t say that you get the best deals out there, I feel it makes the lending business more transparent by helping you steer clear of lenders with low advertised rates but “fine-print disclaimers”.
How it works:
- When you make your profile with rocket mortgage, it can instantly verify employment and income details for more than 60% of working Americans.
- With your authorization, it downloads asset statements from 95% of U.S. financial institutions. This helps you easily fill personal information and click “See my Solution”
- The app displays a customized loan amount you’ll qualify for within minutes based on your credit score and debt-to-income ratios.
- Slider bars allow you to change the closing costs, loan term and interest rate. Then you click the “See If I’m Approved” button.
- Using automated data extraction (ADE) technology, lenders are able to verify checklists in minutes, cutting the time it takes to evaluate loan files by up to 80%. Thus re-defining traditional “stare and compare” approach to verifying data across several documents.
- If you’re approved, first-time homebuyers FHA-backed loans. You can lock your interest rate and print out an approval letter, then go house hunting.
Contrary to public hesitation, such developments in Fin-tech improves the mortgage experience by:
- Saving the client time, but limiting the use of alternative credit data.
- Giving lenders easier access to borrower’s bank information
- Making approvals less prone to human error
So to wrap it up, digital lending is here to stay because it created a whopping $79 billion in mortgages in 2015.
References:
- http://www.housingwire.com/articles/36277-reasons-the-rocket-mortgage-actually-decreases-mortgage-risk
- http://www.mortgageorb.com/expanding-the-definition-of-digital-mortgage
- https://www.nerdwallet.com/blog/mortgages/quicken-loans-and-rocket-mortgage-review
Very interesting articles. I wrote my blog post on fintech disrupting the mortgage market as well. I think what Rocket Mortage offers is definitely appealing to its audience as the mortgage process in general can be very tedious and frustrating. I believe Rocket Mortgage is making the mortgage experience much more pleasant by cutting down on time and fees for clients.
This type of mortgage that allows consumers the ability to get approved for a mortgage, based off their income and other financial requirements does seem like an efficient and streamlined way to get a mortgage. I will not be surprised if this type of mortgage process becomes more and more popular. One thing that this does not offer, is warning the user who is applying for a mortgage that the mortgage they are receiving might be stretching their finances. I feel that a straight-up loan officer would make sure that their client will be comfortable with the loan that they are receiving.
To address your concern, customers can speak with a mortgage advisor anytime by pushing the “Talk to Us” button on every Rocket Mortgage page. But, the app is for self service clients who only wants to talk to a loan officer if it is absolutely necessary.