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Why would I use Quicken Loans? "Rocket Mortgage"
Just wondering
Why would I use Quicken Loans or Rocket Mortgage? (BTW their new commercial is creepy)
I've used them. They are not very investro friendly because they are extremely picky! Not a good lender to use if the property requires any work. They will make you fix it before you can buy. Even if its a few tiles missing or something minimal.
They do offer very competetive rates and are very good at working with you from a distance. Everything is esigned and can close anywhere.
If you are looking for a lender like that though you might want to look into better.com, biggerpockets members get $1000 of their closing costs.
Desperation.
They are horrible to deal with.
Youd use them if you like having a high rate, high fees, bad service, and having the deal fall apart at the last minute.....or even not getting that far because no good agent will accept an offer from them.
I know in the MA/ Northeast market they're not likely going to be considered secured financing because of the lack of credibility they have. Good agents will screen the financing to make sure they're competent people who will close on the loan. Given the fact that you're going to be in a competitive market and there's already a lot of offers on the table. It's not good to have another negative point in your offer to show weakness of the buyer.
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Real Estate Agent Massachusetts (#9561378)
- [email protected]
I used Quicken to personally refinance my home (twice). I had no trouble at all with them, as everything went smoothly. I have yet to invest in any property but want to do so within the next 3-6 months. I previously called Quicken, and as my mortgage holder to a house that is almost 100% paid off, they are willing to loan me money based on my home equity. They were about a point lower than a mortgage broker that I called.
Are you suggesting that it is a bad idea to use them for an investment property, even though they have done well by me for my personal mortgage?
Originally posted by @Steven Strauss:
Are you suggesting that it is a bad idea to use them for an investment property, even though they have done well by me for my personal mortgage?
Absolutely I am. I wouldn't use them ever and advise clients against using them and against accepting offers with them.
Thanks Scott & Andre. It looks like I've been warned. I'll shop for a loan elsewhere.
@Steven Strauss In addition to all of the points made above, their pre-approvals are garbage. They'll issue a pre-approval letter before reviewing pay stubs, W2s, tax returns and bank statements. That's really a pre-qualification - which is useless, because the seller/seller's agent has no idea if you can actually finance the property.
The last Quicken pre-approval I dealt with was issued at $380,000. After reviewing the supporting docs, the amount was reduced to $220,000 due to the type of employment of one of the borrowers. I was faced with broken hearted buyers who had fallen in love with a home at $380,000 that was now far out of their reach - and I had wasted valuable time showing them properties they couldn't afford.
If I have a client with a Quicken or Rocket Mortgage pre-approval, I will always suggest that they get one from a reputable lender before we do too much running around.
Originally posted by @Steven Strauss:
They (Quicken) were about a point lower than a mortgage broker that I called.
That seems highly implausible. Even if I plug in a Montana zip code to get the flyover country interest rate pricing, the HIGHEST priced lender I typically work with (for really difficult scenarios) is at 0.78 points for the exact same scenario in the small print here where they are advertising it at 2 points (scroll down past the trophies to see the advertisement "assumptions") for the exact same scenario. The math does not check out.
Two things that happen frequently:
- Many consumers, and Realtors for that matter, do not know the difference between a mortgage broker and a mortgage banker (aka direct lender). There are lenders and banks priced worse than Quicken, an actual mortgage broker would have to literally break laws to be priced worse. If a banker pretends to be a broker, this is actually great news, you can sue them for lots of money. But they can, without lying, target their SEO etc at the word.
- The comparison isn't apples to apples. It's not rocket science (get it? Rocket?) to be "a point lower" if the consumer isn't paying attention to those points and fees. As already mentioned, they advertise a scenario at 2 points. Most people do not pay 2 points, on a $500k loan that's $10k in extra junk fees!
Some of these national lenders like Quicken Loans, Rocket Mortgage or Keller Mortgage are heavy on fees. Sometimes the interest rates look good, but only because you are paying points and markups on processing fees. You have to look at a sample settlement statement line by line. They will add extra documentation fees or mark up appraisals. There are many ways to overcharge in a loan beside just interest rate. These companies are marketing machines and they can be aggressive.
Thanks to all for the replies. To clarify what I wrote, I meant to say they were a percentage point lower. The loan that I was quoted a few months back seemed low enough at 3.75%. I did not inquire about additional points. It seems that I have been duly warned by the BP crowd, as there is a general consensus to stay away from Quicken/Rocket. I thank everyone for their feedback.
Missed in on the conversation was on the road. Thanks for all the feed back!
@Polo Vazquez good to know, so you used them with no problem for personal mortgage but sounds like the consensus is not for investment.
@Scott Anderson sounds like you had a horrible experience as well! Can you elaborate on that? Just curious.
@Steven Strauss you had a good experience couple times with personal mortgage.
Im wondering if its hit or miss with the broker and/or their underwriting. For personal mortgages.
@Andre Taylor was the quit claim deed out of your property name, was it an LLC? any banks, portfolio banks want the property in an LLC or entity.
@Charlie MacPherson I just went through something similar with the property I just sold. The realtor sent over what was supposed to be a Pre-Approval from the mortgage company but, it was in fact a Pre-Qualification (said it right in the letter). I had to insist that the mortgage company confirm that they verified buyers income, taxes, employment... before I signed the P&S and held up the property.
@Joe Splitrock you mentioned Keller Mortgage, is this Keller Williams?
Thanks for all your feedback!!!. And saving me the time to look any further into Quicken Loans "Rocket Mortgage" Does anyone agree the commercial is straight creepy?
Small local banks in my area don't care if it's in LLC...the local bank I did my last refi with just quit claim deed the property at closing and the bank I am working with now on another refi is doing the same thing
Hi @Mary D. !
I suggest staying far far away. Their origination fees are scary. I have looked at so many Loan Estimates where they charge the borrower $8,000+ in closing cost! It makes no sense. They promote the lowest rate, but really they are charging the borrower in discount points. It is borderline unethical. Build a relationship with a local lender! Especially if you are going to keep buying. Good luck!
Hi @Lacey Dillon!
Thanks for that! Wait what thats crazy! $8K You have to wonder why folks wouldnt see that as I huge red flag. Looks like Quicken Loans needs to get called out on it. Its definitely unethical but Im sure somehow somewhere theres that fine print.
Biggerpockets is a must go to... before you venture into anything new. Thanks again for the info. I do have a few good portfolio banks in my town & a private lender. Just curious to see what Quicken Loans was all about. They spend tons on marketing. I will stay far far away. Lol
@Mary D.
We have used Quicken Loans/Rocket Mortgage on 6 occasions and on our flips with the coupons they give for the buyer they can get a discounts on their closing costs
@Fred
Rocket Mortgage last I knew did different types of financing...
@Rob Milliken I don't think they do fix and flip loans or loans to llc.
When I bought my first ever multi-family property I went to a local bank and they said 'No.'
And so I contacted Quicken Loans and they said 'No.'
And so I went to a local mortgage company and they got me a loan with the local bank that had originally told me 'No.'
I've worked with other local mortgage companies (in other markets) since and much prefer working with them over a bank or national company like Quicken Loans.
Hey
@Rob Milliken How long ago was that? Again Im wondering if its hit or miss with them?
@Karl B. I used to use alot of mortgage companies years ago 2005 may have been the last time. And they were good to work with. Unfortunately there were 2-3 that went out of business 2009ish. Ill look around though.
@Steven Strauss
Quicken since starting Rocket Loans do lots more than they used to including personal loans ( last time I spoke with them, been a couple of years)
My last encounter with a veteran purchasing one of our rehabs, we in negotiating gave them the $750 off closing costs coupon to use them. That transaction was a pain in the butt, but I stayed ontop of them and it closed on time.
@Mary D.
Three years ago I think