Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Advertiser Disclosure
By
Michelle Lambright Black
Michelle Lambright Black
Credit Expert
Michelle is a credit expert, freelance writer and founder of CreditWriter.com. She has over 20 years of experience writing and speaking about credit and money, and focuses on helping families and small business owners make smart, informed decisions about their credit, money and financial products.Michelle’s work has appeared in publications such as Reader’s Digest, Parents, Experian, FICO, Forbes, Money, Bankrate, Seattle Times, MarketWatch, BuySide from Wall Street Journal, USA Today, Yahoo! Finance and more. She’s a three-time finalist for the best personal finance freelancer award from the Plutus Foundation. When she isn’t writing or speaking about credit and money, Michelle loves to travel with her family or read a good book.
Read Michelle Lambright Black's full bio
Reviewed By
Greg Johnson
Greg Johnson
Contributor
Greg Johnson is a freelance editor for Newsweek’s personal finance team. He has been writing and editing personal finance, credit card and travel content for over a decade at his website—ClubThrifty.com—and other national publications. Greg lives in Indiana with his wife and two children.
Read Greg Johnson's full bio
Rocket Mortgage pioneered the online mortgage and continues to offer a user-friendly home loan process for homebuyers who prefer a streamlined borrowing experience.
Our Methodology
Our research is designed to provide you with a comprehensive understanding of personal finance services and products that best suit your needs. To help you in the decision-making process, our expert contributors compare common preferences and potential pain points, such as affordability, accessibility, and credibility.
Rocket Mortgage Overview
Vault Verified
Expert Take: Rocket Mortgage is the nation’s largest mortgage lender and may be a good option for well-qualified borrowers who prefer a streamlined online home loan process. The online lender receives above-average ratings in customer satisfaction studies as well. Yet it remains important to comparison shop with other mortgage lenders to make sure you find the best rates and borrowing terms available for your specific situation.
Pros
- Simple online application and home loan process
- Wide variety of mortgage products
- Largest mortgage lender in the United States
- Available to borrowers in all 50 states and the District of Columbia
Cons
- Hard credit inquiry required for prequalified rate quote
- Lender fees not available on website
- USDA loans not available
- No branch locations for in-person mortgage applications
Vault’s Viewpoint on Rocket Mortgages
Rocket Mortgage offers a variety of home loan programs to qualified borrowers, including conventional mortgages, FHA loans, VA loans, jumbo loans, adjustable-rate mortgages, home equity loans and more. New homebuyers, homeowners looking to refinance, and homeowners who want a second mortgage to borrow against the equity in their home might want to consider Rocket Mortgage as a potential source for their mortgage needs.
The online loan process with Rocket mortgage tends to be user-friendly with live chat and phone support options if you need assistance along the way. However, although the online lender shares general rate details online, you’ll need to apply to prequalify for a customized rate quote. Pre-approval requires hard credit inquiries from one or more of the three major credit bureaus, which could have a small but temporary negative effect on your credit score.
However, Rocket Mortgage does provide an online rate estimate tool and a mortgage calculator. These features make it somewhat easier to gather information to compare the lender to others without having to complete a full loan application.
About Rocket
Rocket Mortgage is the largest mortgage lender in the United States, with nearly a 40-year track record. The company has undergone a few name changes since it was founded in 1985, helping millions of borrowers obtain home loans during that time.
The company introduced RockLoans.com in 1999, an online mortgage system to complement its former branch-based lending process. Fast forward to 2015 and the lender released the first fully online mortgage process—Rocket Mortgage. In 2021, the mortgage company officially changed its name from Quicken Loans to Rocket Mortgage.
Because Rocket Mortgage is an online mortgage lender, qualified borrowers can complete the entire mortgage process—from application to closing—without having to visit a lender or attorney’s office in person. (Indeed, you can’t visit a lender in person even if you want to since Rocket Mortgage does not have physical branches.) Instead, if you have questions during your loan application or you need support throughout the loan process, you have the option to contact Rocket Mortgage customer service via chat or phone.
| Minimum Credit Score | 620 conventional loans, 580 for FHA and VA loans, 680 for jumbo loans |
| Days to Close | 30-45 days on average |
| Minimum Down Payment | As low as 3% for conventional loans, 3.5% for FHA loans, 0% for VA loans |
| Terms Offered | 30-Year Fixed, 20-Year Fixed, 15-Year Fixed; 5-, 7- and 10-Year Adjustable-Rate Mortgage |
Minimum Borrower Requirements
As with any mortgage lender, online or traditional, Rocket Mortgage will require you to meet certain minimum requirements before it will approve you for a home loan. Minimum borrower requirements with Rocket Mortgage vary based on the type of mortgage for which you apply. However, here are some basic conditions you should aim to meet when you fill out an application for a home loan.
- Credit Score: You’re most likely to qualify for a mortgage with a credit score of at least 580 (620 for a conventional loan). However, a higher credit score might improve your odds of qualifying, and better credit could also help you secure a lower interest rate.
- Down Payment: It’s wise to save a minimum down payment of 3% for a conventional loan or 3.5% for an FHA loan. If you want to avoid paying private mortgage insurance (PMI) on certain types of loans, a down payment of at least 20% may be helpful. (Note: Rocket Mortgage currently offers One+ By Rocket Mortgage—a conventional loan with a 2% grant that allows qualified borrowers to purchase a home with a 1% down payment.)
- Debt-to-Income Ratio: Like other mortgage lenders, Rocket Mortgage considers the percentage of your monthly income that is committed to existing debt payments, otherwise known as your debt-to-income (DTI) ratio. In general, you need a DTI ratio of under 50% to qualify for a conventional mortgage (45% for jumbo loans). But a DTI ratio under 36% is preferred and may be more manageable for your budget.
- Income and Employment: In general, you should be able to show at least two years of steady income and employment history when you apply for a mortgage.
If you’re not sure you can meet the requirements to get a mortgage, you may want to work on addressing some of the issues above before you apply for financing—with Rocket Mortgage or any other mortgage lender. For example, instead of searching for ways to buy a house with bad credit, it’s often wise to work on improving your credit first. Attempting to take out a mortgage with bad credit can be challenging and expensive.
Additionally, knowing minimum borrower requirements can help you prepare for a home loan in other ways. When you understand lender expectations, you can work to save up a sufficient down payment, pay down debt if needed, and compare minimum qualification criteria from multiple mortgage companies to make sure you choose the best option for your situation.
How To Apply for Rocket Mortgage
When you’re ready to apply for a mortgage with Rocket Mortgage, you can initiate the process in one of two ways—via phone (800-251-9080) or online. If you start your application online, you’ll begin by providing general details such as the following:
- The type of mortgage you’re seeking (e.g., primary mortgage, refinance, cash-out refinancing, etc.)
- Description of the property you wish to finance (e.g., single-family, multi-family, condominium, manufactured, etc.)
- How you will use the property (e.g., primary residence, secondary home or investment property)
- When you plan to purchase
- First-time home buyer status
- Whether you are a member (or a veteran) of the U.S. military
- Purchase price of the property you wish to purchase
- Estimated down payment
- Estimated credit score range (e.g., excellent, good, average, below average or poor)
- Employment status (e.g., employed, self-employed, retired or not employed)
- Basic contact information (e.g., name, address, phone number and email address)
Once you fill out the initial form, you may hear from a licensed home loan expert from Rocket Mortgage to contact you and walk you through the next steps in the application process. The company may also provide you with a direct number you can call if you prefer not to wait.
How Does Rocket Mortgage Stack Up to Its Competitors?
No mortgage company is the perfect fit for every borrower—Rocket Mortgage included. Yet the company does have a positive reputation overall.
In J.D. Power’s 2023 U.S. Mortgage Origination Satisfaction Study, Rocket Mortgage ranked second out of 29 U.S. profiled mortgage companies. The online mortgage company also received a score of 759 out of 1,000, well above the average score of 730.
Nonetheless, it’s still smart to compare your options before you take out a home loan from Rocket Mortgage. The online lender doesn’t disclose the specific fees it charges borrowers on its website. However, some reports indicate the mortgage origination fees may be on the higher side (yet still within the acceptable range).
Rocket Mortgage vs. PNC
PNC Bank could be a good fit for borrowers who value flexibility during the mortgage process. Unlike Rocket Mortgage, PNC is a traditional bank that offers both an online mortgage application process plus gives borrowers the option for in-person customer service should they desire it. PNC offers several convenient online tools, as well—allowing homebuyers to shop for properties within their budget, estimate payments and track their loan status.
For these reasons and others, Newsweek Vault includes PNC among its best mortgage lenders of 2024. Not only does the bank offer mortgages along with robust online tracking tools, it also offers user-friendly digital banking tools and boasts a large network of branches and ATMs.
Rocket Mortgage vs. AmeriSave Mortgage
AmeriSave Mortgage is another company that offers online mortgages to borrowers who are looking for financing to purchase a primary residence, refinance, or take out a home equity loan. The online lender is known for providing quick quotes and rapid approvals to well-qualified borrowers.
Like Rocket Mortgage, you’ll need to complete an official mortgage application for a preapproved quote—including a hard inquiry of your credit report. As a result, it can be a challenge to research and compare AmeriSave rates with other mortgage lenders in advance. AmeriSave also does not issue loans in the state of New York, so borrowers residing in the Empire State will need to search elsewhere for financing.
Frequently Asked Questions
Does Rocket Mortgage Offer a Preapproval Letter?
Rocket Mortgage gives prospective borrowers a chance to apply for two types of mortgage approvals—a Prequalified Approval Letter and a Verified Approval letter. If eligible, a Prequalified Approval Letter provides you with an estimate of the loan amount you can afford. This letter doesn’t confirm your credit history nor does it verify financial details. A Verified Approval Letter is issued after your income, assets, credit and other details have been verified—acting as the equivalent to a mortgage preapproval that you can use during the home buying process.
Will Applying for a Loan With Rocket Mortgage Damage Your Credit Score?
When you fill out a mortgage application with Rocket Mortgage, a hard credit inquiry will take place. Hard credit inquiries have the potential to hurt your credit score, yet the credit score impact of a single new inquiry on a credit report is typically minor—usually reducing your credit score by only five points or less.
How Much Does Rocket Mortgage Charge for Closing Costs?
In general, when buying a home, you should expect closing costs to range between 3% to 6% of the purchase price. Rocket Mortgage also provides a closing cost estimator you can use. This online tool can help you prepare in advance for how much closing costs may be on your upcoming home loan.
Related Articles
- How to Pay Off Your Mortgage Early
- First-Time Homebuyers Guide
- What is Mortgage Refinancing and How Does it Work?
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Michelle Lambright Black
Credit Expert
Michelle is a credit expert, freelance writer and founder of CreditWriter.com. She has over 20 years of experience writing and speaking about credit and money, and focuses on helping families and small business owners make smart, informed decisions about their credit, money and financial products.Michelle’s work has appeared in publications such as Reader’s Digest, Parents, Experian, FICO, Forbes, Money, Bankrate, Seattle Times, MarketWatch, BuySide from Wall Street Journal, USA Today, Yahoo! Finance and more. She’s a three-time finalist for the best personal finance freelancer award from the Plutus Foundation. When she isn’t writing or speaking about credit and money, Michelle loves to travel with her family or read a good book.
Read more articles by Michelle Lambright Black
