Quicken Loans Review: Does This Top-Rated Lender Truly Deliver?
If you're searching for a company to finance your mortgage, you're likely to encounter Quicken Loans – this non-bank lender is one of the highest-ranking mortgage companies in the United States. It offers a wide variety of home loan products, including conventional and government-backed mortgages.
But does Quicken Loans really live up to its reputation? In this Quicken Loans mortgage review, we take a closer look at the types of loans that the company offers. We also review its loan process so you can see if it’s the right lender to finance your home purchase or renovation.
What To Look For In A Mortgage Provider
Before moving forward, you need to understand the factors we consider when writing mortgage lender reviews. We break each down below:
Available Loan Options
The best mortgage lenders offer a wide variety of home loan types, including loan products backed by government agencies like the Federal Housing Administration or the U.S. Department of Agriculture. They also offer borrowers an option to choose between fixed-rate and adjustable loan terms.
Most lenders offer conventional home loans. These loans are not backed by any government agency, but they're a good option for borrowers who prefer a simpler and more straightforward process. Conventional loans also give borrowers more flexibility, especially for those who want to purchase an investment property or a vacation home.
Mortgage Rates And Fees
When we review a mortgage company, one of the top things we consider is the lender's interest rates. These rates determine how much your monthly payment will cost.
Additionally, we look at the mortgage company's origination fees and application fees. These cover the lender's administrative costs when processing a borrower's application.
Finally, we also check if lenders provide borrowers with the option to purchase discount points. These points lower mortgage interest rates, making a borrower's monthly payments a little more affordable.
Applying for a mortgage can be stressful, but the best mortgage companies make the process quick and efficient. We ask the following questions:
Does the mortgage company allow customers to submit applications online?
How fast can the lender close the deal?
Does the lender do manual or automated underwriting?
Does the mortgage company require a hard/soft credit pull?
Excellent customer service is essential for any business, and mortgage companies are no exception. Whenever we review a lender's service, we look at the following:
Can customers talk to a loan officer face-to-face, if necessary?
Can borrowers call the lending company for advice or assistance?
Does the lender have a good rating with the Better Business Bureau?
Are there cases filed by the Consumer Financial Protection Bureau against the business?
Does it have a good reputation online?
Quicken Loans Mortgage Review
Quicken Loans is an online lender that offers mortgages in all 50 states. As a non-depository lender, the company sells loans to investors such as Fannie Mae and Freddie Mac.
The company also has an online mortgage solution called Rocket Mortgage. You can use the Rocket Mortgage platform to begin the application process, get approved, and even settle your monthly payment. Both Quicken Loans and Rocket Mortgage are under parent company Rock Holdings Inc.
Available Loan Options
The company has a long list of mortgages for home purchase and renovation. Here are the Quicken Loans mortgage products you can choose from:
FHA loans are insured by the Federal Housing Administration. Since this type of mortgage loan is backed by the federal government, it has more lenient credit score requirements.
To get an FHA loan, you need a credit score of 580 and higher. You also need to make a minimum down payment of 3.5% for this type of mortgage.
Keep in mind that Quicken Loans requires you to have a debt-to-income ratio of 50% and a steady employment history. Finally, you need cash to cover the upfront mortgage insurance premium, equal to 1.75% of the loan amount.
Quicken Loans offers 15- or 30-year term lengths for those who want a fixed-rate mortgage loan. Since the interest is fixed throughout the life of the loan, your principal and interest payments won't change over time.
To qualify for a fixed-rate loan, you need a minimum credit score of 620. You also need to make a minimum down payment of 3%.
Adjustable-rate mortgages come with a fixed interest rate for a certain period. Once that period ends, your mortgage rates may change annually depending on the market.
One advantage of getting an adjustable-rate loan is that your starting interest rate is typically lower compared to other types of loans. Down payments can go as low as 5% on a home purchase.
One of the best mortgage options from Quicken Loans is YOURgage, ideal for borrowers who want a flexible loan length and a consistent interest rate. For this type of mortgage, you may choose any loan term you like from 8 to 29 years. As a result, you can control how much your monthly payment will cost.
To qualify, you need to make a minimum down payment of 3%. You also need to have a minimum credit score of 620.
If you're looking for a no-down-payment option, then getting a VA loan may be right for you. This type of mortgage is backed by the Department of Veterans Affairs and is available to qualified veterans, service members, and their spouses.
To qualify for this type of loan, you need a credit score of 620. You also need a debt-to-income (DTI) ratio no higher than 60%.
While you don't have to shell out a down payment, you need to pay the VA funding fee. This fee can only be waived if you have a service-related disability or if you're a qualified surviving spouse.
At Quicken Loans, you can choose a repayment term of 15, 25, or 30 years. You can also pick from fixed-rate or adjustable-rate term options.
Jumbo loans refer to mortgages with high loan amounts. They're typically known as non-conforming loans because they exceed conventional loan limits set by the Federal Housing Finance Agency.
At Quicken Loans, you can borrow from $548,251 to $2 million. This is ideal for borrowers who are purchasing larger houses or properties in upscale neighborhoods.
Here are some of the features of jumbo loans:
This type of mortgage can be used to finance investment properties.
Self-employed workers can qualify without providing traditional employment/income documents.
There is a maximum DTI of 45%.
You only need one appraisal of the home value.
FHA Streamline Loans
FHA Streamline loans are a mortgage refinancing option for borrowers who already have an existing FHA loan. If you need to lower your monthly payment, this is a good option for you.
Some of the advantages of getting an FHA loan from Quicken Loans include:
You can refinance to a mortgage with a low fixed interest rate and pick from various repayment term lengths
There are fewer documents required.
You are not required to get a new home appraisal.
These loans have lenient credit score requirements.
Mortgage Rates And Fees
While Quicken Loans is a well-known lender with a good reputation, the lender's mortgages come at a price. It charges a higher origination fee compared to most mortgage lenders – you can expect average closing costs to reach 3% to 6% of the home's purchase price.
Quicken Loans is quite transparent with its interest rates. Potential customers can use the calculators on its websites to get an estimate of how much their mortgage will cost. Borrowers also have the option to buy discount points. This will lower the interest rate, making the monthly payments more affordable.
One of the features that make Quicken Loans stand out is its float-down option. By paying just a little extra, borrowers can lower their interest rate once to take advantage of lower market rates. This also prevents a borrower's interest rates from going up along with market rates.
Quicken Loans launched its online retail platform Rocket Mortgage in 2015, accessible through either a web browser or the mobile app. You can also talk to Rocket Mortgage agents over the phone.
One of the main advantages of Rocket Mortgage is the speed at which you can apply for a mortgage. Just enter your personal information and information on the property you're interested in, and you can get your loan approved within minutes. The online platform offers the complete experience: you can chat with a loan officer online, upload documents, and electronically sign forms.
Keep in mind that any application you submit to Quicken Loans will require a hard credit pull. This can lower your credit score by a few points, so make sure you're serious about the mortgage process before applying.
Overall, Quicken Loans has a quick and efficient home loan application process. If you're a tech-savvy individual who prefers handling transactions online, then it's perfect for you. However, you might find the Rocket Mortgage experience confusing if you'd prefer to meet with loan officers face-to-face to discuss home loans.
Borrowers usually rank Quicken Loans as one of the best in terms of customer service. According to the J.D. Power 2020 U.S. Primary Mortgage Origination Satisfaction Study, Quicken Loans ranks highest in mortgage origination satisfaction. It has topped this study’s ranking for the 11th consecutive year.
It’s important to note that the Consumer Financial Protection Bureau is conducting an investigation on Quicken Loans regarding potential violations of the Real Estate Settlement Procedures Act. However, the case has not been resolved, and Quicken Loans has not been found guilty of any violations.
Flexible loan terms: Borrowers can choose from a variety of fixed and adjustable-rate mortgages with a term length of 8 to 30 years.
Refinancing options available: Quicken Loans offers refinancing options to borrowers who have existing mortgages backed by the Department of Veterans Affairs and the Federal Housing Administration.
Quick process: Quicken Loans has an online system that immediately checks an applicant's employment status and income level. This enables potential borrowers to get their loans approved within minutes.
Options available for borrowers with low credit scores: If you meet the minimum credit score requirement of 580, you may be eligible to get a mortgage backed by the FHA at Quicken Loans.
Online tools available: If you want to check the interest rates at Quicken Loans, you can use the online tools and calculators on the lender's website.
Convenient online mortgage process: Borrowers can begin and close the home loan application process entirely online. They can also reach out to home loan officers if needed.
Limited loan types: Quicken Loans does not offer home equity loans or home equity lines of credit (HELOCs).
No USDA loans: Quicken Loans does not offer loans backed by the US Department of Agriculture. This limits the options for people who want to purchase rural properties.
High fees: The company's lender fees can be higher than the national median.
No brick-and-mortar location: Since Quicken Loans is an online mortgage lender, you can’t meet its representatives face-to-face.
The Bottom Line
Quicken Loans is one of the largest online lenders in the US in terms of loan volume. Plenty of borrowers close deals with the lender because of its quick application process, excellent customer service, and the variety of home loan types available. However, Quicken Loans does not offer home equity loans. You also need to be wary of high lender fees.
If you need more information about mortgage loans, get in touch with Wesley LLC! We have home loan experts who will provide useful information on the types of mortgages you can choose from and walk you through the mortgage process.