Rocket Mortgage, which was formerly known as “quicken loans.” The company is well known for its mortgage loan provider status and is the best retail lender in the USA. The company is public and is listed on the New York Stock Exchange. The company name has been changed three times since being founded in 1985 by Dan Gilbert and Gary Gilbert. The official name was Rock Financial, which was changed to Quicken Loans, and now Rocket Mortgage just changed in 2021. The company headquarters are located in downtown Detroit, Michigan, and the reason this company is at the top is that while its rival companies depend on deposits, they rely on wholesale funding. Let us see ‘What Credit Bureau Does Quicken Loans Use?’.
The company now has a revenue of $15.735 billion and employs around 24,000 employees in its corporate headquarters.
What Credit Bureau Does Quicken Loans?
Quicken loans use Equifax and the TransUnion credit agency to determine a credit score, but they use the vantage score determination rather than the fico score determination.
How Does the Mortgage System of Quicken Loans Work?
If you want to apply for a house mortgage loan from Quicken Loan, the steps are:
- You must apply for Quicken Loans through their official app or by visiting their office.
- You will need to give your bank details so that they can do a credit check on your profile. 640 is the lowest credit limit for quick loans, so if your credit score is higher than that, you are eligible for the loan.
- You will need to show your salary receipt and job proof so the company gets an assurance that you can pay the installation as well as your normal expenses.
- Your interest rate will be determined by your credit score.
- If everything is proper, you will get a call in 3-4 weeks about whether you are eligible for a mortgage or not.
What are the recent interest rates for mortgages?
Mortgage interest rates are currently at an all-time high, but if your credit score is 760 or higher, they can be significantly lower.
According to the FICO report, the interest rate for a 760+ customer is 2.377% APR and for a customer of 640–659, it is 3.966%.
You may be asking how this is a drastic change when the difference is only 1.589%, but if you look at it over time, you will see that it is. 30 years, you are saving $260 every month, which brings the total to $3120 per year, and over 30 years, you will be saving $93,600.
What are the pros and cons of Quicken Loans Financial?
Pros:
- The prequalification estimate for this company is done within minutes.
- The online process of the company is very good with all the information detailing, which makes it very convenient for the customer, like uploading documents, loan tracking, and approval letters.
- They also provide mortgage advice over the phone to their customers.
Cons:
- They do a hard check for the financial loan approval, which affects your credit score.
- They do not offer home loans or HELO’s.
- They have high mortgage fees, and the lender fees are also high.
- The minimum credit score required is 620, and they need a minimum of 3% down payment.
Quicken Loans Pre-approval Procedure
For the quicken loans pre approval, the customer needs to go through some steps, which are:
- You will need to sign in or register on the official website of Quicken Loans and give them the answers to simple questions and give them your bank details so they can check your credit score. If you are eligible, they will give you an approval letter, which you can show to your real estate agents and sellers.
- After that, they will show you all the interest rates and the money you will get if it is equal to your asking price or less. That depends on your credit score.
- If interest rates rise, your interest rate will rise as well, but if interest rates fall, your interest rate will fall as well.
Conclusion:
Quicken loans use Equifax which is the best company in the world for checking the credit score of the customer. The company has a minimum requirement of 620 of credit score and 3% down payment and the interest rates depend on the credit score of the customer and good credit score can help you in many ways like low insurance premiums and getting loans and stuff. The company quicken loans has a good online client interface with some pros and some cons which occur in every company
FAQS:
- Minimum credit score to buy a house?
It is 640 as of 2022.
- Is quicken loans a bank?
No, it is not a bank but an agency of mortgage loan providers.
