Quicken Loans vs. New American Funding. Which Mortgage Lender Is Right For You?
Choosing the right mortgage lender is one of the most important decisions you’ll make when buying a home or refinancing. Two major names in the mortgage lending space are Quicken Loans (now operating under its online brand Rocket Mortgage) and New American Funding. Both companies offer a variety of mortgage products and have strong reputations, but they cater to different types of borrowers and offer distinct features. In this blog post, we’ll compare Quicken Loans and New American Funding to help you determine which lender is the best fit for your home financing needs.
Overview of Quicken Loans (Rocket Mortgage)
Quicken Loans, now widely known as Rocket Mortgage, is one of the largest mortgage lenders in the United States. They have built a reputation for being a tech-forward company, offering an entirely online mortgage process that’s fast, efficient, and transparent. Rocket Mortgage provides a streamlined way to apply for and manage your mortgage, all from your computer or smartphone.
Key Features of Quicken Loans (Rocket Mortgage):
- Mortgage Types: Offers conventional loans, FHA, VA, jumbo loans, and refinancing options.
- Digital Platform: Full-service online platform that allows you to apply for, track, and manage your loan.
- Preapproval Process: You can get pre-approved for a mortgage within minutes through their easy-to-use app or website.
- Customer Service: Provides around-the-clock access to mortgage experts via phone or online chat.
- Minimum Credit Score: 580 for FHA and VA loans, 620 for conventional loans.
- Awards: J.D. Power has ranked Quicken Loans/Rocket Mortgage the highest in customer satisfaction for mortgage origination and servicing for over a decade.
Pros of Quicken Loans (Rocket Mortgage):
- Fast and Easy Online Application: Rocket Mortgage is known for its quick preapproval process and user-friendly online platform, making it ideal for tech-savvy borrowers who want a fast and convenient experience.
- Strong Customer Service: The company consistently receives high ratings for customer satisfaction, with mortgage experts available 24/7 to assist borrowers.
- Wide Range of Loan Products: Offers a variety of mortgage options, from conventional to government-backed loans like FHA and VA, as well as jumbo loans for high-value properties.
Cons of Quicken Loans (Rocket Mortgage):
- Primarily Digital: While the digital experience is a pro for many, borrowers who prefer in-person service or more hands-on help may not find Rocket Mortgage’s online approach to be the best fit.
- Higher Fees: Some customers report that the closing costs and fees associated with Rocket Mortgage can be higher compared to other lenders.
Overview of New American Funding
New American Funding is a family-owned, independent mortgage lender with a focus on personalized service and lending to underserved communities. While they offer an online mortgage application process, they also have over 200 branch locations across the U.S., providing a more traditional, in-person mortgage experience for those who prefer face-to-face interactions.
Key Features of New American Funding:
- Mortgage Types: Offers conventional loans, FHA, VA, USDA loans, jumbo loans, and reverse mortgages, as well as refinancing options.
- In-Person and Online Services: Borrowers can choose between applying online or visiting a branch for a more personalized experience.
- Special Focus on Underserved Communities: New American Funding actively works to serve Latino, Black, and underserved communities, with specific programs designed to help first-time homebuyers.
- Manual Underwriting: Unlike many lenders that rely heavily on automated systems, New American Funding provides manual underwriting, which can help borrowers with nontraditional income or lower credit scores qualify for a mortgage.
- Minimum Credit Score: 580 for FHA and VA loans, 620 for conventional loans.
- Customer Service: Combines online convenience with personalized in-person service at its branches.
Pros of New American Funding:
- In-Person and Personalized Service: Borrowers can visit one of the company’s many branch locations for face-to-face interactions, which may be appealing to those who prefer personalized service over a fully digital experience.
- Manual Underwriting: This can be a huge advantage for self-employed borrowers, individuals with fluctuating income, or those with lower credit scores who may not qualify through automated underwriting.
- Focus on Underserved Communities: The company has a strong commitment to helping minorities and first-time homebuyers, offering specific programs that aim to increase homeownership rates in these communities.
Cons of New American Funding:
- Limited Online Tools: While they offer an online application process, their digital experience isn’t as comprehensive or streamlined as Rocket Mortgage’s, which may be a disadvantage for tech-savvy borrowers who prefer handling everything online.
- Potentially Slower Process: Manual underwriting can sometimes take longer than automated processes, which may slow down approval and funding times.
Quicken Loans (Rocket Mortgage) vs. New American Funding: Side-by-Side Comparison
| Feature | Quicken Loans (Rocket Mortgage) | New American Funding |
|---|---|---|
| Loan Products | Conventional, FHA, VA, jumbo loans, refinancing | Conventional, FHA, VA, USDA, jumbo, reverse mortgages |
| Application Process | Fully online, with digital tools for easy preapproval and loan management | Online application available, but also offers in-person service at branches |
| Customer Service | Available 24/7 through phone and online chat | Personalized, in-person service with manual underwriting |
| Minimum Credit Score | 580 for FHA/VA loans, 620 for conventional loans | 580 for FHA/VA loans, 620 for conventional loans |
| Preapproval Speed | Preapproval in minutes via online platform | Can take longer due to manual underwriting |
| Manual Underwriting | No | Yes, for nontraditional borrowers or those with unique financial situations |
| Branches | No branches, fully digital | Over 200 branch locations for in-person support |
| Best for | Tech-savvy borrowers looking for fast, easy online experience | Borrowers wanting in-person service or those with unique financial circumstances |
Which Mortgage Lender Is Right for You?
Choose Quicken Loans (Rocket Mortgage) if:
- You Want a Fully Digital Experience: Rocket Mortgage is ideal for borrowers who prefer managing their mortgage process entirely online, from preapproval to closing.
- You Need Quick Preapproval: If you’re in a hurry, Rocket Mortgage’s ability to preapprove you within minutes makes it a great choice for those who need fast answers.
- You Value High Customer Satisfaction: Rocket Mortgage consistently ranks high in customer satisfaction, making it a solid choice if you want responsive and reliable service.
Choose New American Funding if:
- You Want Personalized Service: If you prefer face-to-face interactions and a more traditional mortgage experience, New American Funding’s branch locations and in-person support might be more your style.
- You Have Nontraditional Income: New American Funding’s manual underwriting process can be beneficial for self-employed individuals or borrowers with unique financial circumstances.
- You’re a First-Time Homebuyer or Minority Borrower: With a commitment to helping underserved communities and first-time homebuyers, New American Funding offers tailored programs and guidance to support these groups.
Final Thoughts
Both Quicken Loans (Rocket Mortgage) and New American Funding are reputable mortgage lenders with strong track records, but they cater to different types of borrowers. Quicken Loans is perfect for those who value speed, technology, and convenience, while New American Funding excels at providing personalized service, particularly for borrowers who may need manual underwriting or prefer an in-person experience.
Ultimately, the right choice depends on your personal preferences, financial situation, and how you want to navigate the mortgage process. Before deciding, it’s always a good idea to compare rates, loan terms, and customer service experiences by getting prequalified with both lenders to see which one offers the best fit for your home financing needs.
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