Looking for a home loan? You’ve probably come across Veterans United and Rocket Mortgage. Veterans United is all about supporting Veterans and their families with home financing, while Rocket Mortgage stands as a big player, funding billions in loans annually. So, which one’s really worth your time? Let’s dive in.
Veterans United vs. Rocket Mortgage: The basics
Veterans United: Since 2002 Veterans United has been proudly serving Veterans and their families.
Rocket Mortgage: Rocket Mortgage, formerly Quicken Loans, is a giant digital lender.
We’re certainly curious why Rocket’s refinanced loans accounted for a quarter of their volume—112,710 loans—during a time when rates were among the highest in the last decade. It makes one wonder about the factors that led so many borrowers to refinance under those conditions.
Tomo Mortgage: Launched in 2020, Tomo Mortgage is here to shake up the industry. We offer killer rates, zero lender fees, and a process that’s all about making home buying easy and stress-free. Our customer reviews? 4+ starts on every review platform: Consumer Affairs, Google, Bankrate, Zillow, etc. We’re not just a breath of fresh air—we’re a whole new way of doing things.
The breakdown
| Lender | Veterans United | Rocket Mortgage | Tomo Mortgage |
| Founded | 2002 | 1985 | 2020 |
| Lender Fees | $2,700 per conventional loan, $2,100 per VA loan* | $4,700 per loan* | $0 |
| On-Time Close Rate | Not reported | Not reported | 98% |
| Customer Reviews | 4.9 stars on Consumer Affairs | 4.1 stars on Consumer Affairs | 5.0 stars on Consumer Affairs 4.95 stars on Zillow |
| Employee Reviews | 4.3 Stars on Glassdoor | 3.5 stars on Glassdoor | 4.1 stars on Glassdoor |
How to judge mortgage lenders
- Interest rates: Don’t get fooled by flashy numbers. Always compare the “par rate” with 0 points and check out the APR (Annual Percentage Rate). This is your real cost of borrowing, so get the full picture before signing up.
- Lender fees: Also called “origination fees” or “application and processing fees, which Veterans United and Rocket Mortgage average over $2,100 in per loan. At Tomo Mortgage, we’re lender fee-free, saving you thousands of dollars at closing.
- On-time close rate: This is how often lenders actually close on the promised date. Industry standard? About 40%. But Tomo Mortgage –flexing a 98% on-time close rate, and we’re proud of it. Other lenders don’t even bother to share this info, but it’s a huge deal.
- Pre approvals: While some lenders don’t take the time necessary to prepare a strong pre approval and offer letter, this is critical to making a successful offer on a new home. Tomo Mortgage’s online pre approval only takes 15 minutes, and it includes a soft credit check—but way more reliable when you’re making an offer on a home.
- Customer satisfaction: If you’re finding it tough to trust what lenders are telling you, one of the best ways to gauge their reliability is by looking at reviews from people who were once in your shoes. Did those customers have a smooth experience with the lender? What went right—or wrong?
- Employee reviews: Insights into employee satisfaction can reveal a company’s values and transparency. Unhappy employees often lead to bad overall experiences. (See what their engineers have to say, for example.)
The verdict: Veterans United or Rocket Mortgage
If you value emphasis on a military community, Veterans United could be worth considering. They excel with VA loans and have better customer reviews than Rocket Mortgage. However, they come with fees that could add up.
But for most people the most important factor is the rate. We were curious to see how Tomo Mortgage’s APR (annual percentage rate) stacked up against Rocket Mortgage so we looked at three Zip codes for two weeks on Nerdwallet (where we could compare apples-to-apples on loan scenarios). Using the median home sale price for each location, a credit score range of fair at 680, and with putting 5% down.
In this scenario, from August 7 to August 20, 2024, Rocket’s average APR was 7.64% while Tomo’s average APR was 6.26%.
So, we’re obviously biased, but we’d say don’t choose either. Tomo Mortgage has lower rates, lower fees, and better reviews. It’s a pretty obvious choice.
*sources: Business Insider Mortgage Reviews: Veterans United, Rocket Mortgage, and HMDA data from 2023
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.