Quicken Loans mortgage review

Quicken Loans

 

Overview: best for individualized terms and outstanding customer support.

 
 

Quicken Loans is the best option for borrowers who are looking for a well-established name in the industry: it is America’s largest mortgage lender, rated among the top 50 mortgage servicers from the Inside Mortgage Finance report as of the second quarter of 2017.

While Quicken Loans serves home loans, its sister company Rocket Mortgage is the online intermediary involved in the process of granting your mortgage application. Alternatively, you can approach directly with a mortgage expert since the beginning of the entire process: this double choice sets apart Quicken Loans from other lenders that are functioning exclusively online.

The mortgage lending firm known as Quicken Loans today started as Rock Financial in 1985. Its ownership was shifted in December 1999, and the company name changed as well to Quicken Loans. Currently, it is licensed to operate in all 50 States.

The company believes that the entire process of getting a mortgage must be the simplest possible, and strive to do so by helping you find a personalized solution, and putting at disposal of all instruments to keep track of your loan status. The better thing about Quicken Loans is that it allows you to take your time and place to prepare for the important step of

closing a mortgage, providing all the details, and assisting you in a professional manner.

 

What types of mortgages are available through Quicken Loans?

Whether you are looking for a traditional mortgage or need a more specific solution for financing your home purchase, there are multiple different types of mortgage products available: the rates, terms, amounts, and eligibility of these home loans vary. Here, we discuss the key features of each product.

Conventional 30-year or 15-year mortgages. The traditional mortgages have fixed-rate terms of either 30 or 15 years: you may be able to choose the term depending on suitability to your needs. Opting for any of the two broad categories, you won’t incur prepayment penalties if you decided to add payments to your regular schedule to accelerate the payoff.

A fixed-rate mortgage focuses on unchanging monthly payments throughout the loan period: you will know exactly the amount you have to pay. For most borrowers, this option is more dependable because it allows for better financial planning.

To qualify for a conventional mortgage through Quicken Loans, your recommended minimum credit score is at least 620, and a debt-to-income of no more than 50%. You will need to put a down payment of 3% of your home purchase price, with closing costs of 2-6% depending on the loan size, its term, and your creditworthyness.

– ARMs (Adjustable-rate Mortgages) offer lower interest rates at the start of the loan period. You can select an introductory period of 5 to 7 years in most cases, and up to 10, during which the interest rate remains fixed. Once this period is ended, the rate starts to fluctuate. Remember, it may go either direction: up and down. However, the change will depend on the benchmark rate of your loan.

Additionally, the number of times this fluctuation may occur is predetermined as well. Finally, the loan terms include a clause mentioning the maximum interest rate for the loan, thus, despite fluctuations, the loan never exceeds this rate.

– Jumbo Loans. You are required a minimum credit score of 700 to get these loans. Quicken Loans offers you the alternative to select between the fixed or adjustable-rate for this loan as well. The maximum amount of loan given in this case is $3 million.

– Federal Housing Administration (FHA) loan. As the name suggests, this loan has the backing of the government itself. Again, as a borrower, you get the chance to select between fixed and adjustable-rate terms, that are up to 30 years. In certain cases, your home loan may require only 3.5 % as the down-payment. Quicken Loans sets the credit score requirement to only 580 to qualify for this loan, making it accessible to many people considered “subprime borrowers”

– FHA streamline. Refinancing a current FHA mortgage with a lower interest rate and fewer documents.

– Veteran Affairs (VA) Loan. Quicken Loans gives special consideration to both the active and retired members of the U.S. armed forces. Thus, this loan is available to veterans and their spouses and currently active members of the U.S. military. These loans have no down-payment requirement. Besides, the maximum loan amount can be up to $1.5 million.

– Mortgage refinancing. Quicken Loans allows you to switch your current loan to a new one: you will get lower rates and have the option to adjust the payments and terms of the loan. This will have

– Yourgage: this is a unique product of Quicken Loans, that offers fixed rates with flexible terms ranging from 8 to 29 years. These terms can be directly chosen, so as to have the most freedom to manage your future payments. Mortgage insurance will be still paid if your down payment was below 20%, as is the norm. To qualify for this formula, requirements are nearly the same as those of a conventional mortgage.

 

What should you know about Quicken Loans?

 

One of the biggest competitive edges of the company is its online convenience. Instead of possibly unskilled customer support, the Quicken Loans service includes professional mortgage bankers who can guide you throughout the complete application process. Additionally, the Jumbo loan option offered by Quicken Loans is not something you find from many other lenders. Another major benefit is the ability to get loans based on discount points: by buying these points, you can obtain a reduction in your rate. Also, the inclusion of the federally administered loans ensures that you can qualify with a lower credit score than standard.

Here is a synopsis of what you will find.

Types of mortgage Home buying, refinancing, Jumbo, fixed or adjustable rates, USDA, VHA, FHA
Borrowable amounts
Up to 97% of the home purchase value, with a $3 million cap
Terms
8-30 years
Down Payment
None for VA loans; minimum 3% for conventional loans
Other upfront costs
A refundable good faith deposit of $450-$ 700, depending on the type of loan; closing costs of 2-6% of the loan amount
Banking Services
None
Repayment Options
Online or manual

 

 

 

Quicken Loans applies for a “rate shield approval” on 30-year conventional, FHA, and VA fixed-rate mortgages: this means the initial interest rate is locked for up to 90 days, and your final rate will depend on the date you were approved.

The lender requires a “good faith deposit” to be made, to cover the costs of home appraisal, pulling the credit report, and processing the loan, but in some cases, it can be reimbursed at mortgage closing.

We sum up both the benefits and disadvantages of getting a mortgage through Quicken Loans.

Pros:

 

– Reliability and experience of the largest mortgage online provider in the U.S.
– Highly rated from current customers
– Flexible terms of repayments through the “Yourgage” option
– Jumbo Loans available
– Great online support for your application

 

Cons:

 

 

– You need to pay a deposit during the application process
– The whole process is two-fold, which may put off some potential borrowers.
– It must be mentioned that although starting online, Quicken Loans allows you to finalize – the mortgage only by meeting the underwriter officer.

 

How do you apply for a mortgage from Quicken Loans?

 

Quicken Loans doesn’t leave you abandoned in choice: before you submit your application, you are faced with the best options for your possibilities and needs, which will be properly explained and discussed. The company team members make sure you understand all the terms and conditions before taking such an important decision.

Everyone applying for a home loan has to verify their financial information. However, the process is easier compared to many alternative options as you do not need to submit any paper documents. Instead, you provide financial information online. Additionally, you can update these requirements in real-time, and take action to improve the speed of the loan approval process.

The application process is relatively fast but two-fold, which requires speaking to a dedicated representative, besides manually filling your details online. This process can be entirely paperless, but you can actually get the papers if wanted. It also requires a deposit in most cases. The compulsory requirements for the application are as follows:

 

– Providing a Social Security Number, complete contact details, and full name.
– Employees must submit their past 30 days pay stubs.
– Your tax details for the past two years
– If self-employed, profit and loss statements

  • A list of your assets and liabilities with complete financial details.

Then, there will be no obligation to close: Quicken Loans gives you breath by letting you choose when and where to do it. However, bear in mind that to check all this information, a hard inquiry on your credit score and history will be necessarily performed.

Once you are done, you will have the ability to see and manage your payments even from your phone. There is also an app for the purpose, that is easy to use and lets you download the documents if you are the one who likes having papers on hand.

 

How Quicken Loans is rated among customers?

 

The service’s rapid growth over the years and the significant market share suggest a high level of customer loyalty and satisfaction. The client service has won awards over more than 30 years of activity.

It’s no surprise that you will be assisted at every single step of getting your mortgage: from the very beginning, during the application, and afterward. This can be accomplished both by speaking with the personnel and through the website technology.

On the website, you find a plethora of resources useful for approaching your mortgage with knowledge and ease of mind, among which: a guide for first-time homebuyers, the fundamentals of mortgages and refinancing, as well as a set of calculators to prior estimate your monthly payments.

Most people are satisfied with the service offered by Quicken loans. Its reputation is quite high: on Trustpilot, it has more than 16,000 reviews from which receives a 4.4/5 score, which is difficult to get from so many feedbacks, very valuable to you if you seek what other people say.

The positives we found by reading between the lines include easy application and professional interactions with the support team. Additionally, customers appreciate and value the way the company keeps them informed throughout the whole process. A great experience with refinancing their mortgages is reported from several customers as well.

However, some people mentioned having issues at the times of underwriting and closing, for instance complaining of errors, or even too much stretched timelines to end the process; also, the extra deposit due along with the application process was felt like a nuisance. That said, you must understand that there can be circumstances where things might get more complicated than normal, which is acceptable when it comes to such a relevant loan as a mortgage.

 

Final verdict

 

If you are looking to finance your home purchase from a leader mortgage servicer operating online, Quicken Loans is your direct choice: it gives you maximum flexibility with customizable loan terms, along with practically all the mortgage variants available on the market. And if to be fully supported the whole time is for you an absolute priority to finalize your mortgage or refinancing it, with the utter expertise, Quicken Loans is certainly worth it.

Consider our other reviewed lenders if you prefer approaching a mortgage provider directly or in a more traditional way, or reduce the amount of upfront costs to the minimum while staying at a top level of choice.