Redfin Mortgage recently announced it will be offering loans to homebuyers in Illinois. Originally launched in January this year, Redfin Mortgage initially began in Texas and continues to expand; it plans to serve clients in Virginia by the end of the year as well as others in 2018. Redfin primarily serves homebuyers who choose Redfin real estate agents.
Redfin currently offers 30-year and 15-year fixed rate and adjustable mortgages, as well as underwritten preapprovals. To guarantee a borrower an approved loan, Redfin reviews and verifies all borrower information in advance. The borrower’s credit and employment status must not significantly change after the pre-approval and the home shall not be appraised lower than the proposed sale price. The borrower must also provide proof of acceptable title commitment and homeowner’s insurance.
“In the current competitive real estate market, a fully underwritten pre-approval gives the homebuyer an edge by earning the seller’s confidence that the loan will be approved quickly and the sale will close on time,” said Jason Bateman, head of Redfin Mortgage. “In a bidding war, a buyer with a fully underwritten pre-approval can consider waiving the financing contingency to make their offer nearly as appealing to a seller as an all-cash offer” according to Bateman.
Redfin Mortgage integrates an affiliated lending operation with its own existing brokerage and title businesses to work towards the goal of an entirely digital process. This process is meant to cover all steps from applying for the loan to closing. Redfin hopes to be the fastest and most transparent way for homebuyers to receive a quote, get pre-approved, and submit an offer to buy a home. According to the release, Redfin real estate agents have no incentive to offer Redfin loans over others and will continue to encourage consumers to work with lenders that offer the best service and rates.
To see the full release from Redfin click here.