When it comes time to get a mortgage, choosing the right lender can make all the difference. Two popular options for mortgage loans are Rocket Mortgage and Wells Fargo.
But which one is the better choice for your home loan? In this comprehensive guide, we’ll compare the pros and cons of Rocket Mortgage vs Wells Fargo to help you decide.
A Brief Comparison Table
| Aspects | Rocket Mortgage | Wells Fargo |
| Type of Lender | Online lender | Traditional national bank |
| Loan Process | Fully digital | Combination of online and in-person |
| Underwriting Time | Very fast with tech automation | Slower underwriting by humans |
| Loan Officers | Private mortgage brokers | In-house loan officers |
| Customer Service | Email and web support | Phone, email, online, and in branches |
| Loan Options | Conventional, FHA, VA, jumbo | All standard products |
| Closing Timeline | As fast as 8 days | Varies more widely |
| Minimum Credit | 620 | 620 |
| Requirements | Less flexibility | More strict requirements |
| Interest Rates | Competitive | Competitive |
| Origination Fees | Varies | Varies |
| Best For | Borrowers who value speed and technology | Those who want in-person guidance and support |
Overview of Rocket Mortgage
Rocket Mortgage, formerly known as Quicken Loans, is an online mortgage lender that offers a fast and streamlined process for getting a home loan. Here are some key things to know about Rocket Mortgage:
- Owned by Rocket Companies, a Detroit-based holding company
- One of the largest mortgage lenders in America
- Focuses on online and app-based services for speed and convenience
- Known for quick approval times and closing speeds
- Offers a range of mortgage products including conventional, FHA, VA, jumbo loans
- Uses proprietary tech to automate parts of process
- Has over 3,000 mortgage brokers across the U.S.
Rocket Mortgage touts its fully online mortgage experience as a major benefit. Borrowers can apply, get approved, and complete paperwork completely electronically. This can significantly speed up origination and closing timelines.
Rocket Mortgage also has positive reviews from many customers who appreciate the easy user experience. However, some have complained about communication issues during the process.
Overview of Wells Fargo Mortgage
Wells Fargo is a large national bank that offers a variety of financial services, including mortgages. Here are some key facts about Wells Fargo mortgage loans:
- Part of Wells Fargo bank, one of the “Big Four” U.S. banks
- One of the biggest mortgage lenders in the United States
- Offers a full range of home loan products
- Loan officers available to guide you through the process
- Branch locations provide in-person assistance
- Closing times dependent on paperwork and underwriting
Wells Fargo is best suited for borrowers who want hands-on support from a loan officer and the option to complete paperwork in person. However, the traditional lending model can mean longer wait times for processing and underwriting.
Wells Fargo mortgage reviews are mixed. While some customers appreciate the helpful loan officers, others report bureaucratic processes and poor communication.
Also Read: Comparison Between Wells Fargo And Regions Bank.
Rocket Mortgage Pros
So why might you choose Rocket Mortgage over Wells Fargo? Here are some of the key advantages:
Fully Online Experience
The entire mortgage process with Rocket Mortgage can be completed online with your phone, tablet or computer. You can apply, submit documents, e-sign, and more without ever needing to visit a branch or meet an advisor in-person. This can really speed up the loan process.
Fast Approval Time
Rocket Mortgage is known for providing fast approval decisions. You can get a rate quote and pre-approval letter in minutes. And they advertise closing in as little as 8 days for qualified applicants with their Rocket Mortgage Classic loan.
Tech Streamlines Process
By using proprietary tech and algorithms, Rocket Mortgage automates much of the mortgage process that is traditionally manual. This allows them to speed up origination, underwriting, and more.
Wide Product Selection
Rocket Mortgage offers a suite of mortgage products including conventional, FHA, VA, jumbo, adjustable rate mortgages, and more. Their online experience makes it simple to compare options.
Large Nationwide Presence
With licenses in all 50 states, Rocket Mortgage can provide mortgages to borrowers across America. They also have over 3,000 home loan experts to help with the process.
Wells Fargo Pros
While Rocket Mortgage focuses on tech and speed, Wells Fargo offers more traditional lending. Here are some benefits of choosing Wells Fargo mortgages:
Established Reputation
Wells Fargo has been in the mortgage business for over 175 years. They have established relationships with borrowers and a reputation as a reliable lender.
Local Loan Officers
Wells Fargo has local mortgage consultants and loan officers located across the U.S. This gives borrowers access to in-person guidance during the home loan process.
Physical Branches
With over 5,000 branch locations, Wells Fargo offers the option to complete your mortgage paperwork in person at a branch. This appeals to those who want face-to-face service.
Wide Array of Loan Types
From conventional to adjustable rate to jumbo, Wells Fargo provides all the standard mortgage products. Their mortgage consultants can explain the options to help you choose.
Familiarity for Existing Customers
For those who already bank with Wells Fargo, getting a mortgage with them can be simpler by using a known lender. Pre-approval uses your banking history.
Rocket Mortgage Cons
Of course, Rocket Mortgage also has some downsides to consider:
No In-Person Service
The fully digital process means no ability to meet with a loan officer or advisor in person. Those who prefer human interaction may view this as a con.
Loan Communication Issues
Some borrowers have complained of poor communication during the loan process, since messaging occurs via email and online alerts. Miscommunications can delay approvals.
Requirements for Top Speed
To get Rocket Mortgage’s vaunted fast approval and closing times, you need to meet requirements like a high credit score, low debt-to-income ratio, and simple application. Otherwise, it may take longer.
Job Verification Difficult for Self-Employed
Their tech-based underwriting makes verifying employment easy for W-2 workers. But it can be more difficult for self-employed or freelance borrowers. More documentation may be required.
No Branch Locations
As an online lender, Rocket Mortgage does not have any physical bank branches. This leaves no option for completing mortgage tasks in person.
Also Watch This Review Video:
Wells Fargo Cons
There are also some potential disadvantages of using Wells Fargo for your home loan:
Slower Mortgage Process
The traditional lending model used by Wells Fargo tends to involve more paperwork and longer timelines. Rocket Mortgage’s tech results in a quicker end-to-end mortgage process.
Underwriting Delays
Any mistakes or issues in documentation can cause underwriting delays with Wells Fargo mortgages. Their underwriters take longer to review applications versus Rocket’s tech automation.
High Rate of Complaints
Wells Fargo has a higher ratio of customer complaints compared to other large banks and lenders. Their big bank bureaucracy leads to frustrations for some borrowers.
Stricter Lending Standards
Due to tightening risk controls after their fake accounts scandal, Wells Fargo now has stricter standards for approving mortgages than some competitors. Their approval rates are lower.
Inflexible Requirements
Wells Fargo offers less flexibility on documentation and borrowing requirements for special cases like self-employed applicants or unconventional properties.
Also Read: Comparison Between SoFi And Happy Money.
Frequently Asked Questions (FAQ)
The primary reasons home buyers choose Rocket Mortgage are for the fast online process, quick approval timelines, and ability to close loans rapidly. Their digital mortgage experience appeals to tech-savvy borrowers who value speed and convenience.
Rocket Mortgage is owned by Rocket Companies, which is a Detroit, Michigan based holding company (not a bank). They provide the technology platform and online lending process for Rocket Mortgage.
A few things make Rocket Mortgage unique compared to other lenders: Fully online/app-based mortgage process, Proprietary tech that automates origination and underwriting, Ability to get approved and close loans very rapidly, Digital verification of assets and income, Focus on creating an easy user experience.
Some of the top banks for mortgage lending are: Chase – Offers competitive rates and variety of loan options, Quicken Loans – Fast online mortgage loans through Rocket Mortgage, Bank of America – Large lender with digital and in-person service, Wells Fargo – Established bank with loan officers and branches nationwide, Citi – Digital mortgage experience combined with branch access, TD Bank – Variety of home loan products and rate discounts for customers. The right mortgage lender depends on your preferences like online versus in-person service, desired features and options, and availability in your local area. Comparing multiple rate quotes helps find the best lending fit.
Also Read: Comparison Amerisave And Rocket Mortgage
Final Verdict
Overall, Rocket Mortgage usually provides a faster and easier home loan experience compared to Wells Fargo. The digitized process lets you get approved and close quickly, without needing to set foot in a bank branch. This makes them ideal for borrowers who are tech-savvy and want speed.
However, Wells Fargo may be a better choice if you want personal guidance from a loan officer and the ability to complete paperwork in person. Their long history as a lender also provides comfort for some traditional borrowers.
Each lender has pros and cons, so think about what mortgage features are most important to you. Get rate quotes from both Rocket Mortgage and Wells Fargo to see how they compare. This can help determine which is the right mortgage loan provider for your financial situation and home buying needs.