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Understanding Rocket Mortgage
Rocket Mortgage is an online mortgage lender and part of Quicken Loans. It offers a fully digital mortgage application process that simplifies the traditional mortgage experience. What sets Rocket Mortgage apart is its user-friendly interface and quick processing times. To qualify for a Rocket Mortgage, you typically need a credit score of at least 580, though higher scores can provide better rates. Additional requirements include proof of income, employment verification, and a debt-to-income ratio of less than 50%.
Preparing for the Application
Before applying, gather all necessary documents. This typically includes your W-2s or 1099s from the past two years, recent pay stubs, bank statements, and information related to any debts or assets. It's also a smart idea to check your credit report for any discrepancies and resolve them ahead of time. Understanding your credit score will help you know what options you have and what interest rates you can expect.
Step-by-Step Application Process
1. Visit the Rocket Mortgage website: Start by navigating to the Rocket Mortgage homepage, where you’ll find an option to ‘Get Started’ or ‘Apply Now’. 2. Create an Account: Provide your basic information to create an account. This will allow you to save your application and return to it later if needed. 3. Enter Your Financial Information: Input your income, assets, and debts. Rocket Mortgage will guide you through the necessary fields. 4. Upload Your Documents: You can upload your documents digitally through their secure portal. This includes your financial statements and identification documentation. 5. Review Your Options: Once your information is submitted, Rocket Mortgage will provide you with mortgage options tailored to your financial profile. Review the different loan types, rates, and terms. 6. Lock Your Rate: If you find a rate that you are comfortable with, you have the option to lock it in. This means the rate will be guaranteed for a set period, protecting you from potential increases. 7. Finalize Your Application: Once you’ve reviewed and confirmed everything is correct, submit your application. You will be informed of the next steps shortly after.
What to Expect After Submission
After submitting your application, you will receive a confirmation email. A mortgage expert from Rocket Mortgage will likely contact you to discuss your application and any additional information needed. The underwriting process will typically begin within a few days. This involves verifying your financial information and ensuring you meet all lending requirements. By law, lenders must issue a Loan Estimate (LE) within three business days of receiving your application. This document provides an estimate of your mortgage terms, closing costs, and any other related fees.
Closing the Loan
Once your loan is approved, you will transition into the closing phase. Rocket Mortgage will coordinate with you to set a closing date and provide you with the closing disclosure, which outlines the final terms of your mortgage. On the closing day, you will review and sign all necessary paperwork. Make sure to bring valid identification and any required funds in the form requested (usually a cashier’s check or wire transfer). After closing, the funds will be disbursed, and you will officially be a homeowner.