The homebuying process is notoriously stressful and can be confusing, especially if you've never applied for a mortgage before and don't know how to wade through the seemingly endless pool of lenders. Show One name you might have heard in the real estate realm, however, is Rocket Mortgage. The company is an established household name when it comes to shopping around for a loan and is one of the largest mortgage lenders in the U.S. Plus, it's a standout option for those homebuyers with lower credit scores. While most mortgage lenders look for a minimum credit score of 620, Rocket Mortgage accepts applicants with scores at 580. To make your mortgage search easier, Select reviewed Rocket Mortgage and took a closer look at some of its home loan options, considering factors such as interest rates, down payment minimums, term lengths and other perks in the process. You can read more about our methodology below. Subscribe to the Select Newsletter! Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here. Rocket Mortgage review
Rocket Mortgage
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APRThe best way to figure out the annual percentage rate, or APR, you're likely to be offered by Rocket Mortgage is to get pre-qualified and submit your home loan application. While mortgage interest rates can fluctuate quite often, the rate you receive will depend heavily upon your location, credit score and credit report. Take a look at each lender's website to get a better idea of the kinds of interest rates they charge, but keep in mind that they'll vary by your location and creditworthiness. Either way, it's important to provide the necessary information to check your personalized rate. Loan offeringsRocket Mortgage offers conventional loans — 30-year and 15-year fixed loans — as well as adjustable-rate mortgages, FHA loans, VA loans and jumbo loans, but not USDA loans. This lender also does not offer construction loans, designed for those to build a brand new custom home, or home equity lines of credit, also called HELOCs. Down payment minimumsThe lowest down payment you can make with Rocket Mortgage is 0% and is available only to those who are eligible to apply for its VA loan option. For anyone who isn't eligible for Rocket Mortgage's VA home loan, they can make a down payment as low as 3%, as long as they're proceeding with its 30-year-fixed-rate or 15-year-fixed-rate mortgage options. Note that both of these loans require having a credit score of at least 620 in order to qualify. If you're planning on moving forward with a jumbo loan (over $647,200), keep in mind that the typical down payment amount for these types of loans across lenders is usually 10%. Rocket Mortgage requires a credit score of at least 680 to be approved for one of these. Term lengthsRocket Mortgage offers flexible loan repayment terms that range from eight to 29 years, including standard 15-year and 30-year terms. You'll also have a choice between fixed-rate and adjustable-rate mortgage terms. Options include a 7/6 adjustable-rate mortgage (a fixed-rate period of seven years followed by a rate that changes every six months), a 10/6 adjustable-rate mortgage (a fixed-rate period of 10 years followed by a rate that changes every six months), an FHA adjustable-rate mortgage and a VA adjustable-rate mortgage. Customer supportHomebuyers can contact Rocket Mortgage home loan experts by calling Monday through Saturday during business hours or by using the live chat feature on its website. Customers can also opt in to receive text messages from Rocket Mortgage about managing their payments. PerksRocket Mortgage will provide you with a Prequalified Approval Letter and a Verified Approval Letter, which state that Rocket Mortgage has already verified your income, assets and creditworthiness upfront so you can stand out to home sellers — and potentially give you a competitive edge over other homebuyers who have been pre-approved for a loan but haven't had their income and assets approved yet. Rocket Mortgage can also order an appraisal on your behalf, which is necessary to assess the fair market value of the home and the property taxes you would have to pay. The lender even offers a Fresh Start program, which is aimed at helping potential applicants boost their credit score before applying. Bottom lineRocket Mortgage is a long-time industry contender with solid loan options to fit many financial needs. Its Fresh Start program and Verified Approval Letter are two standout resources offered by this lender, each aimed at assisting homebuyers in a consistently competitive housing market. Those who desire a more involved customer service presence throughout the homebuying process might gravitate toward other lenders since Rocket Mortgage's standard chat and telephone hours may not be as appealing. A good option is Chase Bank, which matches customers to a Home Lending Advisor near them who can cater to their needs and simplify the homebuying process. Home Lending Advisors are also there to ensure they've filled out all the necessary documentation and can even connect homebuyers with home inspectors, real estate agents and other professionals they'll need to interact with during the process. Catch up on Select's in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date. Read moreOur methodologyTo determine which mortgage lenders are the best, Select analyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs. When narrowing down and ranking the best mortgages, we focused on the following features:
After reviewing the above features, we sorted our recommendations by best for lower credit scores, flexible down payment options, no fees, flexible loan options and for saving money. Note that the rates and fee structures advertised for mortgages are subject to fluctuate in accordance with the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party. Is Rocket mortgage a hard or soft inquiry?When you apply for a mortgage, car loan, student loan, credit card or personal loan, lenders will check your credit. This is a hard inquiry and will cause your score to drop slightly, but only temporarily.
Does Rocket loans do a hard pull?Rocket Loans will also do a hard credit check when you apply, so your credit score could temporarily dip. Make a plan to repay the loan. Rocket Loans reports payments to all three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it.
What is the lowest credit score for a VA loan?There is no minimum credit score requirement. Instead, VA requires a lender to review the entire loan profile. For more information, see the complete VA credit guidelines at www.benefits.va.gov/warms/pam26_7.asp.
What is the lowest credit score to buy a house?Generally speaking, you'll need a credit score of at least 620 in order to secure a loan to buy a house. That's the minimum credit score requirement most lenders have for a conventional loan. With that said, it's still possible to get a loan with a lower credit score, including a score in the 500s.
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