Quicken Loans was founded in 1985 and is now considered the nation’s largest residential mortgage lender, operating in all 50 States.
Its physical headquarters are in Detroit, Michigan. It focuses more, however, on building a stronger online presence than physical presence.
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Is Quicken Loans a Good Company?
The Quicken Loans’ online platform allows its customers to apply for a wide range of products and services through helpful phone representatives.
Alternatively, you can apply through their online portal “Rocket Mortgage.”
This allows you to complete a full application process without needing to speak to a representative.
What Types of Mortgage Can I Get with Quicken Loans?
All mortgages are not created equal, and there are various options available to you if you choose to apply for a Quicken Loans mortgage.
This is a safe bet for a home loan with a fixed repayment amount that will not change during the term of the loan. Interest rates tend to be a bit higher with a fixed-rate loan.
However, there is comfort in knowing what your repayments will be for the duration of the loan. Quicken Loans offer terms of 15 and 30 years for their fixed-rate mortgage.
Adjustable-Rate Mortgage (ARM)
ARMs can offer slightly lower interest rates in the initial period. After this, however, your interest rate will fluctuate in line with the current market rates, and this will be reflected in your repayments.
ARMs generally have a maximum interest rate specified that your interest cannot exceed over the term of the loan.
Just like it sounds, a jumbo loan is generally for borrowing larger amounts. Any amount that exceeds the conforming loan limit in that area will be considered a Jumbo Loan.
Whether you apply for a jumbo loan will depend heavily on the average real estate prices and the conforming loan limit in that area.
With Quicken Loans, depending on your circumstances, you can take out a loan of up to $3,000,000. You could also do a cash-out refinance of up to $500,000.
Federal Housing Administration (FHA) Loan
This is a government-insured loan for people with lower credit scores, limited income, or limited means to provide a cash down payment.
Department of Veterans Affairs (VA) Loan
These loans are backed by the Department of Veterans Affairs and are for former members of the U.S. armed forces or their spouses.
Quicken Loans offer 15, 20- or 30-years fixed rate or a 5/1 ARM with VA loans.
United States Department of Agriculture (USDA) Loan
These loans are for those wanting to purchase a rural property.
If your income is 115% or less of the average income of the area, you might be eligible. Other features include 0% down payment and low guarantee fees.
How Much Does Quicken Loans Charge for Closing Costs?
“Closing costs” is an umbrella term for a multitude of fees that come standard with every loan.
There are numerous fees involved, and it’s important to become familiar with them, understand what they relate to, and know what services you’re able to shop around for.
Closing costs can include, but are not limited to:
- Application Fee
- Underwriting Fee
- Title Search
- Lenders and Owner’s Title Insurance
- Pest Inspection Report
- Flood Determination
- Escrow Property Taxes
- Attorney Fees
When you apply for a loan with Quicken Loans mortgage, you’ll be given a Loan Estimate detailing what your closing costs are likely to be.
As with other lenders, closing costs with Quicken Loans can be as much as 5% of your purchase price.
How Can I Reduce My Closing Costs?
There are, however, means by which you can try to reduce your closing costs.
One option is to take a higher interest rate on the loan itself. Quicken Loans refer to this as the “Closing Cost Cutter.” It can be a valuable option if you’re current cash flow is tight.
However, the long-term result will be higher repayments and a higher sum of interest paid back over the term of the loan.
Other ways to reduce your closing costs can include:
- Comparing costs and shopping around.
- Evaluate the loan estimate and go through it with a fine-tooth comb, so you know where every dollar is going.
- Compare the Closing Disclosure form to the Loan Estimate and ask the lender to explain any discrepancies. This may open up negotiations to reduce your closing costs.
What Does Your Credit Score Have to Be For a Mortgage With Quicken Loans?
To apply for a Quicken Loans mortgage, they’ll assess you based, in part, on your credit score. Your required minimum credit score will vary depending on the type of loan you’re looking for.
- Conventional Quicken Loans Mortgage: To apply for a conventional Quicken Loan mortgage, you’ll need a minimum score of 620.
- Jumbo Loan: Approval for a jumbo loan, on the other hand, will depend on you having a score of 700 or higher due to the increased risk factor in these loans.
- Federal Housing Loan: FHA Loans through Quicken requires a minimum score of 580. This is lower than the 600 minimums that many other lenders require.
- Veteran Affairs Loan: VA Loans can be approved on scores as low as 620.
As you can see, there is a variation in the minimum scores required. Keep in mind, also, that your credit score is only a portion of what they will assess.
Other factors, such as income and down payment will also be taken into consideration.
Pros and Cons of Quicken Loans Mortgage
The advantage of opting for a Quicken Loans mortgage is that Quicken only does mortgage lending.
It veers away from investments, banking, or other financial products. Therefore, it can focus solely on offering a wide range of mortgage products, offering increased flexibility in lending terms and a wide range of products.
What some people may consider a disadvantage is their lack of a strong physical presence. Some potential customers may find this off-putting as they may prefer to go into a branch and speak with somebody.
However, as they are so focused on building a strong online presence, their platform is highly efficient and user-friendly, which many might consider a big plus.