Quicken Mortgage: Fast Closing After Preapproval?

Quicken Loans' Rocket Mortgage offers a fast and convenient service for those seeking mortgage preapproval. The entire process is conducted online, allowing applicants to import documentation from other vendors, such as checking accounts and brokerage accounts, without the need for downloading and uploading documents. While the application process is swift, the closing process still takes several weeks to a month, as certain requirements must be met, including a home inspection and appraisal. Once the lender has provided a loan estimate and the closing disclosure, the applicant can arrange to close at any time.

Preapproval is the first step to getting a mortgage

Preapproval is a crucial step in the mortgage process and offers several advantages to both homebuyers and sellers. It involves a comprehensive evaluation of your finances, including your credit score, income, debt, and financial accounts. By doing so, a lender can determine how much you can borrow for your mortgage, giving you a clear idea of your budget for buying a home.

The preapproval process typically starts with a hard inquiry into your credit, which may cause a slight dip in your credit score. Lenders will then request various documents, such as bank statements, pay stubs, and personal identification, to verify your financial information. This process can now be done entirely online through platforms like Rocket Mortgage, making it faster and more convenient for applicants.

Once your financial information is reviewed and verified, you will receive a preapproval letter outlining the tentative mortgage loan amount, interest rate, and other loan terms. This letter is typically valid for 60 to 90 days and can be shared with real estate agents and home sellers to demonstrate your ability to obtain financing. It is worth noting that the preapproval process can take up to 10 business days, and the actual closing of the mortgage can still take several weeks or even more than a month.

While preapproval is an essential first step, it is not the only factor in securing a mortgage. Your chosen lender will also consider the condition of the home and may require specific standards to be met before finalising the loan. Additionally, it is important to monitor your finances and credit score during the process, as any significant changes may impact your preapproval status.

Preapproval gives an estimate of how much you can borrow

Quicken Loans' Rocket Mortgage offers a fast and convenient way to get full mortgage approval. However, it is important to note that the entire loan process, including closing the mortgage, still takes several weeks or even more than a month.

Now, getting preapproved for a mortgage is a smart step to take when you are ready to put in an offer on a home. It is a more specific estimate of how much you can borrow from your lender. Preapproval requires documentation, such as bank statements, pay stubs, and personal identification, and a credit check. The higher your credit score, the more likely you are to get favourable loan terms.

Mortgage preapproval helps buyers search for homes within their budget, making the house hunt smoother and more efficient. It also makes an offer more enticing to a seller as it indicates that you are a pre-approved borrower. Preapproval gets the bulk of the mortgage process done upfront, so once you've had an offer accepted, you can focus on getting ready for your move.

You will receive a preapproval letter, which is typically valid for 60-90 days, after which you will need to reapply. This letter will outline the tentative mortgage loan amount, interest rate, and other loan terms. It is important to note that multiple preapprovals can drop your credit score, so it is recommended to get and compare preapproval letters from different lenders within a 45-day window to count as a single inquiry.

Preapproval is beneficial for homebuyers

While it is unclear how long it takes Quicken Mortgage to close after preapproval, it typically takes several weeks to process and close a mortgage, which is the case with Quicken Loans.

Now, getting preapproved for a mortgage is highly beneficial to homebuyers. Firstly, preapproval helps buyers search for homes within their budget, making for a smoother and more efficient house hunt. It also makes an offer more enticing to a seller as it shows that you are a serious buyer who can secure a mortgage, thereby increasing your chances of having your offer selected.

Additionally, preapproval gets the bulk of the mortgage process done upfront. This means that once you have had an offer accepted, you can focus on getting ready for your move. It also helps you narrow down and focus on your best options. You can compare preapproval letters from different lenders to uncover the best deal and decide which lender you will have the best working relationship with.

Furthermore, preapproval helps you find out if there are any issues that could prevent you from getting financing. Lenders will want to verify your employment and income, and consider your debt-to-income ratio. This ratio helps lenders make sure you have enough income to reasonably cover your debts.

Finally, preapproval can be done early in the home-buying process, allowing you to establish your homebuying budget and giving you an idea of how much you can borrow.

Preapproval is not a guarantee and expires in 60-90 days

Preapproval is an initial assessment by a lender indicating the borrower’s potential eligibility for a loan based on their financial information. It is not a binding commitment, but a preliminary step in the mortgage application process. The preapproval process is essentially a mortgage application. Your lender or loan officer will want to take a comprehensive look at your finances and debt-to-income ratio (DTI). You should be prepared to provide information on your income, assets, and financial documentation. Your lender will review various documents and numbers before approving your mortgage and home purchase. They will look at your credit score and your debt-to-income ratio.

A preapproval letter will tell you how much the lender will let you borrow. It will include the tentative mortgage loan amount, interest rate, and other loan terms. The letter will also clearly state the expiration date of your preapproval, which is typically valid for 60–90 days, depending on the lender. After that, you’ll need to apply again with another credit pull and updated paperwork. If there are any major changes to your financial situation, your preapproval limit might also change.

It's important to note that preapproval is not a guarantee. It is simply an indication of your potential eligibility for a loan. The final approval is a conclusive decision by the lender after a thorough examination of the borrower’s financial documentation, property appraisal, and other relevant factors. This marks the conclusive stage in the loan approval process, while preapproval is a preliminary evaluation.

Additionally, it's worth mentioning that multiple preapprovals can drop your credit score unless all the credit checks happen within 45 days, which will count as a single inquiry. Therefore, it's advisable to limit the number of hard inquiries during the home buying process as they can impact your credit score.

The mortgage process can be accelerated by using Rocket Mortgage

Rocket Mortgage's online application process is straightforward and can be completed in just a few minutes. Applicants can import documentation from other vendors, such as checking accounts and brokerage accounts, instead of downloading and uploading documents, making the home loan process faster and more accurate.

The company offers a couple of different approval options, including prequalified approval, which is the fastest way to get approved. With prequalified approval, applicants are not required to provide any documents but should be prepared to share information about their income and assets. Additionally, applicants can sync their bank accounts with their application, allowing Rocket Mortgage to determine the exact amount available for the down payment and closing costs.

Rocket Mortgage also provides preapproval letters, which are valid for 60-90 days, depending on the lender. Preapproval determines how much an individual can borrow and helps buyers search for homes within their budget. It also makes an offer more attractive to the seller and completes a significant portion of the mortgage process upfront.

While the entire loan process may still take several weeks to a month to close, Rocket Mortgage's digital platform and convenient features can significantly accelerate the mortgage journey for homebuyers.

Frequently asked questions