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I originally had a FHA approval but it felt like every house in my budget was asking conventional only. So I shopped around and ended up getting a higher approval from Rocket Mortgage for a conventional. 25K higher and estimated monthly mortgage is the same as the lower amt from the previous lender. My realtor is now balking at it. Trying to get me to go through different lenders. I have already had several credit checks, and I worry the more inquiries it could impact my score. I had asked if she could contact the selling agent on one property that they told her they would would not accept FHA offers, if they were looking for conventional or cash only since the listing does not say. She has yet to inquire, but is sending me additional properties to look at and wants to send me referrals for a local lender. (I am moving from another state so a lot of online looking from afar).
Is Rocket Mortgage really that bad to work with? They had mixed reviews online but it didn't seem that bad. My agent seems really hands on. He didn't just punch my numbers he talked about different scenarios and asked specific questions. I felt like he was more invested than some of the other lenders I have communicated with.
Part of why I wanted a national lender rather than a local bank was people told me it would be a lot easier doing my closing virtually and from a distance while local banks like to do things in person. 14 hours difference and me not able to use up much of my PTO time as I need it for moving, this makes it harder. This may have changed after COVID where it is easier to do long distance because of COVID forced a lot of people to do things remotely.
I would think as long as I had the verified approval letter showing I have the funding from a legal mortgage lender, it shouldn't matter who I am going through.
Should I bow to the pressure or should I hold firm? Is Rocket Mortgage really that awful?
I don’t know. Every market is different. I didn’t choose the loan provider my realtor wanted me to because I knew the loan officer who I worked with and knew she was great and they had in-house underwriting. And it was local. So my realtor really couldn’t object about much. If there isn’t in-house underwriting, that is a potential road block.
I originally had a FHA approval but it felt like every house in my budget was asking conventional only. So I shopped around and ended up getting a higher approval from Rocket Mortgage for a conventional. 25K higher and estimated monthly mortgage is the same as the lower amt from the previous lender. My realtor is now balking at it. Trying to get me to go through different lenders. I have already had several credit checks, and I worry the more inquiries it could impact my score. I had asked if she could contact the selling agent on one property that they told her they would would not accept FHA offers, if they were looking for conventional or cash only since the listing does not say. She has yet to inquire, but is sending me additional properties to look at and wants to send me referrals for a local lender. (I am moving from another state so a lot of online looking from afar).
Is Rocket Mortgage really that bad to work with? They had mixed reviews online but it didn't seem that bad. My agent seems really hands on. He didn't just punch my numbers he talked about different scenarios and asked specific questions. I felt like he was more invested than some of the other lenders I have communicated with.
Part of why I wanted a national lender rather than a local bank was people told me it would be a lot easier doing my closing virtually and from a distance while local banks like to do things in person. 14 hours difference and me not able to use up much of my PTO time as I need it for moving, this makes it harder. This may have changed after COVID where it is easier to do long distance because of COVID forced a lot of people to do things remotely.
I would think as long as I had the verified approval letter showing I have the funding from a legal mortgage lender, it shouldn't matter who I am going through.
Should I bow to the pressure or should I hold firm? Is Rocket Mortgage really that awful?
It's actually easy to get a conventional loan with a higher purchase price and lower payment than FHA if you go with a Home Ready or Home Possible option. Heck even on a straight conventional, your estimated payment is only $20.30 more per month with a 25K higher purchase price.
Unfortunately, Rocket (& plenty of other big box lenders) have left many people (buyers, sellers and agents) high and dry at the 11th hour so people are leery of working with them.
This is why your agent is skeptical.
In addition, Rocket's reputation could cause a listing agent to recommend another offer over yours.
If you're comfortable with the LO you're working with, let your agent know. If they persist, tell them you'll find a new agent if it's a problem for them.
Agents have a REASON for not liking national lenders: Phone trees where you can't reach real decision makers if things start to go sideways with the loan documents.Loan agents who seem really nice but don't make the decision. They send it on to Underwriting, and you can't talk to them. You have to wait.
EVERY last minute problem or delay we have ever had has been with a national lender with an office in Phoenix and a phone tree answering system that no one answers if they don't have good news.
My local lender... I have his cell phone, and his address. He doesn't ghost me. You should try a lender your agent recommends who is local where you're buying, because your agent trusts him for a reason, and other listing agents considering your offers will also. They know about your credit hits, and they know how to take care not to hurt your score.
Agents have a REASON for not liking national lenders: Phone trees where you can't reach real decision makers if things start to go sideways with the loan documents.Loan agents who seem really nice but don't make the decision. They send it on to Underwriting, and you can't talk to them. You have to wait.
EVERY last minute problem or delay we have ever had has been with a national lender with an office in Phoenix and a phone tree answering system that no one answers if they don't have good news.
My local lender... I have his cell phone, and his address. He doesn't ghost me. You should try a lender your agent recommends who is local where you're buying, because your agent trusts him for a reason, and other listing agents considering your offers will also. They know about your credit hits, and they know how to take care not to hurt your score.
Rocket makes people groan. You don't want that.
I'm usually pro-realtor, but that is utter nonsense. The OP should go with whichever lender givers him the better deal. I don't care how much additional work is involved for the real estate agent or how much extra time he or she has to spend on hold. That's their GD job. There's a reason agents are paid tens of thousands of dollars to close a sale, and one of those reasons involves doing whatever is necessary to assist the client.
I'm usually pro-realtor, but that is utter nonsense. The OP should go with whichever lender givers him the better deal. I don't care how much additional work is involved for the real estate agent or how much extra time he or she has to spend on hold. That's their GD job. There's a reason agents are paid tens of thousands of dollars to close a sale, and one of those reasons involves doing whatever is necessary to assist the client.
It's not our time and money that is the issue. In this market, it's about getting a seller to accept your offer, which means demonstrating your likelihood of getting the transaction closed easily and ON TIME.
Delays cause REAL problems for sellers who also have their own plans in motion. If you want the house, you need to assure the seller that your loan will go through without problems. Rocket, and other national lenders don't have a great reputation for that.
It can be a red flag is all. And in a competitive situation with a lot of close offers, it might be the thing that makes a difference. That's our experience, that's usually why agents have an opinion about it.
Last edited by Diana Holbrook; 05-10-2022 at 02:29 PM..
It's not our time and money that is the issue. In this market, it's about getting a seller to accept your offer, which means demonstrating your likelihood of getting the transaction closed easily and ON TIME.
Delays cause REAL problems for sellers who also have their own plans in motion. If you want the house, you need to assure the seller that your loan will go through without problems. Rocket, and other national lenders don't have a great reputation for that.
It can be a red flag is all. And in a competitive situation with a lot of close offers, it might be the thing that makes a difference. That's our experience, that's usually why agents have an opinion about it.
No, it can't, because the offer doesn't state who the mortgagee is going to be. At least I've never seen one. The offer merely states that the buyer will get a mortgage of a certain amount, at a certain rate and for a certain number of years.
The sellers and their agent may debate taking a cash offer over one that requires a mortgage, but they sure as hell aren't sitting there debating whether to take an offer where the mortgagee is First National Bank of the Local Area vs. Rocket Mortgage.
No, it can't, because the offer doesn't state who the mortgagee is going to be. At least I've never seen one. The offer merely states that the buyer will get a mortgage of a certain amount, at a certain rate and for a certain number of years.
The sellers and their agent may debate taking a cash offer over one that requires a mortgage, but they sure as hell aren't sitting there debating whether to take an offer where the mortgagee is First National Bank of the Local Area vs. Rocket Mortgage.
Any serious offer comes with a Pre-Approval letter from the buyer's lender for the purchase price, or proof of funds if cash, to even be considered.
It is actually true that buyer doesn't have to use that lender, but that is the assumption.
Last edited by Diana Holbrook; 05-10-2022 at 05:53 PM..
I originally went FHA because I thought it was the only way to get the low down payment which I need. But my downpayment with the conventional is the same which evened the playing field.
Honestly, this process is exhausting. Shopping for lenders. Trying to shop for houses from 14 hours away. I know that first day once I unlock my new house for the first time will be worth it. I sure hope.
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