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Shopping for a mortgage has never been easier, thanks to the array of online options. Brick and mortar lenders may still be a viable option, but you may find that an online lender has even more to offer.

Furthermore, exploring online mortgage lenders allows you to compare mortgage rates. You can also receive customized mortgage loan offers in your inbox in minutes. Even better, you’ll have direct access to a loan officer in case you have questions.

Who are the top online mortgage lenders for 2023?

If you’re in the market for a new home and ready to start your search for online lenders, here are some reputable options to choose from.

Best Online Mortgage Lenders of 2023

loanDepot

loanDepot is an online lender, but don’t think that means they are lacking in customer service. They provide over 150 loan stores across the country for customers that prefer in-person service.

The lender is a suitable option for anyone who wants to take out a mortgage with the assistance of a loan officer.

loanDepot offers various mortgage products, including fixed and adjustable-rate mortgages. You can also apply for jumbo loans, VA loans, and FHA loans. You’ll need a minimum credit score of 620 to qualify for a mortgage.

loanDepot ranks high in customer satisfaction and most buyers seem to have a good experience working with them. However, they do charge higher fees than other mortgage lenders.

Quicken Loans

This online lender takes the hassle out of securing a mortgage by letting you complete the entire process online.

You’ll need to provide a few key details about your finances using this form to get started. A Home Loan Expert will review your application and contact you to discuss loan options.

And no need to worry about getting overwhelmed. Quicken Loans offers online tools to help you understand loan options and the home buying process. Plus, the customer service is excellent; a live representative is always standing by.

You can also upload all your documents and monitor the status of your application directly from the portal. This means you never have to pick up the phone if you don’t want to.

And when you’re ready to close, you have the option to schedule the closing when it’s convenient for you.

Better.com

If you’re looking for an online mortgage lender, you should check out Better.com. The company uses technology to simplify the lending process for its customers. Better.com promises a fast and transparent mortgage experience.

The lender is willing to work with all different kinds of buyers, including individuals who are self-employed or have unique job situations.

At least a third of its mortgages are taken out by first-time homebuyers, and over 70% of all buyers pay a down payment that is less than 20%.

Better.com mortgages don’t come with any hidden fees; there are no application or origination fees. To get started, you can visit the company’s website and get pre-approved in just a few minutes.

Rocket Mortgage by Quicken Loans

Rocket Mortgage is a division of Quicken Loans. Their key competitive advantage is the asset importer tool, which takes the guesswork out of determining whether you’re approved.

Instead of uploading documents, importing them from the information provider guarantees the accuracy of the numbers and allows you to receive loan offers using real-time interest rates in a matter of minutes.

And once you’ve selected a loan that works for you or created a custom option, you’ll be able to close in record time. Plus, Rocket Mortgage customer service experts are standing by to assist with questions you may have every step of the way.

NBKC Bank

NBKC Bank is not as widely known as many of the other lenders on this list. But that doesn’t mean you should rule them out as a potential mortgage lender.

There are several features that make the Kansas City-based lender a great option. The bank promises fast home closings and provides exceptional customer service.

NBKC Bank focuses mostly on online mortgages and offers its customers competitive interest rates. It does have several brick-and-mortar locations but focuses mostly on processing online mortgages.

You’ll need a minimum credit score of 620 to qualify for a mortgage, so this is a suitable option for borrowers with fair credit. NBKC Bank offers various mortgage products, as well as personal accounts. This makes them a great option for anyone looking for a full-service lender.

Guaranteed Rate

You can apply for a mortgage in a matter of minutes from the homepage of this digital mortgage provider’s site.

All you have to do is answer a few questions about your desired home, credit, and finances to receive a comprehensive listing of loan types and interest rates you may qualify for.

Guaranteed Rate has plenty of no-down-payment loan options like VA loans and USDA loans. They also offer a knowledge center to help you understand mortgages and how the process works.

Once you decide on a mortgage product that best suits your needs, you’ll work directly with a loan expert to upload and sign documents and finalize the loan. If you prefer to meet with a loan expert, there are 170 Guaranteed Rate branches across the United States.

Truist

Truist is known for its brick-and-mortar presence, but they also have an impressive online mortgage platform. Available in English and Spanish, Truist mortgage offers an array of mortgage solutions to choose from.

You can initiate the application process online or directly from your mobile device through the SMARTGUIDE tool.

You can also call 877-907-1020 to speak with a loan officer or chat online from the website. Or if you wish to meet with a loan officer, use the locator tool to find a Truist branch near you.

You can also take advantage of their Doctor Loan program if you’re a medical professional and meet select income criteria.

SoFi Mortgage

SoFi mortgage is another online lender that stands out from the masses. Although they don’t offer government-backed home loans, SoFi mortgage has programs that require a down payment as low as 10 percent, and they do not assess mortgage insurance.

Customers also enjoy a seamless prequalification and application process, along with no origination fees. Even better, it may be possible to close on your loan in under 30 days.

Penny Mac

If you’re searching for flexibility, Penny Mac may be the ideal lender for you. They offer several options to consumers of varying financial backgrounds. To date, they’ve served over 1 million customers and funded over $5 billion in loans in 2017, alone.

You can request a no-obligation free quote online, chat with an expert, or call (888)870-6229 to get started.

Reali

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Reali caters to consumers looking to purchase or refinance their homes. Through their Interactive Loan Dashboard, you can apply, upload any documents needed, and track your loan’s progress at the tap of a fingertip.

You’ll also have access to a Home Loan Advisor 24/7 to address any concerns you may have. And because of their streamlined process and low fees, you can expect to close in record time without spending a fortune.

Unfortunately, Reali does not offer government-backed products, like FHA loans, USDA loans, and VA loans.

This can be a turnoff to first-time, credit-challenged, or cash-strapped buyers.

Another major drawback is that they only operate in Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia, and Washington.

The good news is they plan to expand their offerings to more states soon.

Pros and Cons of Online Mortgage Lenders

The rise of the internet has revolutionized many industries, and the mortgage industry is no exception. Online mortgage lenders have steadily been gaining a more substantial market share due to their distinct advantages. However, as with anything, they come with their own set of disadvantages. Here, we break down the pros and cons of opting for an online mortgage lender.

Pros of Online Mortgage Lenders

1. Lower Costs: Operating primarily online, these lenders often have fewer overhead costs compared to traditional brick and mortar lenders. This can translate into competitive mortgage rates and lower lender fees, making online mortgage lenders potentially cheaper.

2. Convenience: The ability to initiate and complete the entire application process online is a significant advantage. You don’t have to schedule meetings with a loan officer or travel to a bank branch. Instead, you can apply anytime, anywhere, which fits well with busy schedules and modern, on-the-go lifestyles.

3. Range of Loan Products: Online mortgage lenders often offer a broad range of loan products, including FHA and VA loans, USDA loans for rural properties, conventional loans, and jumbo mortgages. These lenders often cater to a diverse demographic, meaning whether you’re a first-time homebuyer seeking down payment assistance, a veteran, or someone with less-than-perfect credit, you can often find an online mortgage product that suits your needs.

Cons of Online Mortgage Lenders

1. Technological Hurdles: Not everyone is tech-savvy. If you’re not comfortable navigating online platforms or don’t have reliable internet access, you may find the online mortgage process daunting. The learning curve associated with digital platforms can be a deterrent for some people.

2. Lack of Personal Interaction: Some people prefer a high-touch, personalized service when dealing with significant transactions like buying a home. With online lenders, face-to-face interaction is usually minimal or non-existent, which can be a downside for those who prefer a more traditional approach to their financial transactions.

3. Negotiability of Fees: While online mortgage lenders are often cheaper, certain costs like origination fees and closing costs may not be as negotiable as they could be with a traditional lender. Also, mortgage insurance may still be required for government-backed loans, like FHA or VA loans, and the requirements for jumbo loans may be stricter.

4. Trustworthiness: The online space can be a breeding ground for scams and unscrupulous practices. Not all online mortgage lenders are trustworthy, making it crucial to do your homework. It’s important to research each online lender thoroughly, checking their reputation, reading customer reviews, and ensuring they are registered with appropriate financial oversight institutions.

Despite these potential downsides, many homebuyers find that the convenience, competitive rates, and the ability to shop around from multiple lenders offered by online mortgage lenders outweigh the cons. But the best online mortgage lender for you ultimately depends on your personal finance needs, comfort level with technology, and unique home loan situation.

Factors to Consider when Choosing an Online Mortgage Lender

Finding the right online mortgage lender for your home-buying journey involves more than just hunting for the lowest interest rate. You need to consider a variety of factors, from loan types to the speed of loan processing. Here’s a breakdown of what to look for:

Interest Rates

As a prospective borrower, interest rates are often one of your first considerations. The interest rate can significantly influence your monthly mortgage payment and the total cost of your loan. Due to their lower overhead costs, online mortgage lenders often advertise competitive rates. However, it’s essential to compare rates across different lenders to ensure you’re getting the best deal.

Fees and Hidden Charges

While interest rates play a crucial role in determining your loan cost, it’s equally important to consider fees and potential hidden charges. This could include origination fees, appraisal fees, closing costs, and other service charges. Some lenders may also charge additional fees for rate locks or early repayments. Always ask for a comprehensive cost breakdown and be wary of lenders who are not transparent about their charges.

Loan Types

Each online mortgage lender may offer a variety of loan types, such as FHA loans, VA loans, conventional loans, and more. Depending on your personal circumstances and needs, you might need specific loan products like USDA loans for rural properties, FHA or VA loans for a low down payment, or jumbo loans for larger properties. Ensure that the lender you choose caters to the type of loan that suits your situation best.

Customer Service and Support

Excellent customer service is crucial when dealing with online lenders as your primary communication methods will be via phone, email, or online chats. Lenders who offer high-quality customer service can significantly streamline the mortgage process, making it less stressful for you. Consider checking customer reviews and ratings for insights into a lender’s customer support.

Speed of Loan Processing

The time it takes for online mortgage lenders to process your loan application and close your loan can vary. If you’re working within a specific timeframe, you may prefer a lender known for quick processing. This is particularly crucial in competitive real estate markets, where being able to close swiftly could make all the difference.

Pre-approval Process

A seamless pre-approval process can signify an efficient online mortgage lender. Pre-approval offers you a rough estimate of how much you can borrow and helps you stand out in competitive property markets. Seek lenders that provide easy pre-approvals, preferably with only a soft credit check to avoid impacting your credit score.

User-friendly Technology

With most of your interaction with online lenders taking place digitally, user-friendly technology becomes paramount. Consider factors such as the simplicity of the application process, online document upload functionality, digital signature capabilities, and the ease of online loan tracking. A lender with a robust, intuitive platform can significantly simplify your online mortgage process.

Tips for Applying for a Mortgage Online

Embarking on the journey of applying for a mortgage online can feel overwhelming, especially if it’s your first time. But don’t worry – we’ve got some helpful tips to guide you through the process.

How to Prepare

Before you start your online mortgage application, it’s important to get your financial house in order. Here’s how:

  1. Check your credit score: Your credit score is one of the main factors that lenders consider when evaluating your loan application. Make sure to check your credit reports for any errors and dispute them if needed. If your score is low, you might want to consider improving it before applying for a mortgage.
  2. Verify your income: You will need to provide proof of income, so gather your recent pay stubs, W-2s, or tax returns. If you’re self-employed, you may need to provide additional documentation, like bank statements or profit and loss statements.
  3. Get your documents in order: Apart from income verification, you’ll need other documentation, like identification, proof of assets, and information about your debts. Having these documents ready can speed up the application process.

Navigating the Application Process

Once you’re ready to apply, keep the following in mind:

  • Understand the terms: Make sure you understand the terms of the mortgage, like the interest rate, whether it’s fixed or adjustable, the length of the loan, and any fees involved.
  • Use online tools: Many online lenders offer useful tools like mortgage calculators. These can help you understand what your monthly payments might be based on different interest rates and down payment amounts.
  • Stay organized: Keep track of where you are in the application process. Most online platforms will save your progress, but it’s good to have your own record too.

Questions to Ask Your Lender

Securing a mortgage can often feel like a daunting process, particularly when applying online. To navigate this path with more confidence, it’s crucial to arm yourself with the right questions when engaging with potential lenders. The responses to these questions will not only give you a clearer idea about the mortgage terms but also about the lender’s transparency and commitment to customer service.

What types of loans do you offer?

The world of mortgages encompasses a variety of loan types designed to cater to different borrower needs. This includes conventional loans, government-backed loans such as FHA, VA, and USDA loans, and jumbo loans for larger mortgages.

Understanding the unique benefits and requirements of each type is important. For example, FHA loans may be suitable for those with lower credit scores, while VA loans are primarily designed for veterans. Your potential lender should be able to provide a comprehensive explanation of each option and help guide you towards the loan type that best fits your unique situation.

What are the interest rates and APR?

While the interest rate of a loan often takes center stage, the Annual Percentage Rate (APR) should not be overlooked. The APR provides a more comprehensive measure of cost as it includes the interest rate, lender fees, and other loan charges, offering a more complete picture of the long-term cost of the loan.

What fees are involved?

Beyond the interest rate, mortgages often involve several other fees that can impact the overall cost of the loan. These include origination fees, appraisal fees, home inspection fees, and potentially prepayment penalties. Some lenders may even charge for rate locks, which secure your interest rate for a specified period. It’s critical to ask for a detailed breakdown of all fees involved to ensure that there are no hidden costs that might surprise you down the line.

What Is the estimated timeline for approval and closing?

Mortgage approval and closing timelines can vary greatly among different lenders. Knowing the expected timeline can be crucial, especially if you’re working with a specific move-in date. In a competitive real estate market, a quick approval and closing process could make all the difference when multiple offers are being considered.

What are your minimum credit score and down payment requirements?

Understanding a lender’s minimum credit score and down payment requirements can help you gauge your chances of approval. These requirements can vary greatly depending on the loan type and the individual lender’s policies.

Do you consider alternative credit data?

For those with a limited credit history, some lenders may consider alternative credit data such as utility bill payments or rent payment history. Asking about these possibilities could potentially help you qualify for a loan even with less conventional credit information.

What is your process for loan servicing?

Understanding whether the lender will service your loan or if they intend to sell it to another company is important. If they plan to sell it, knowing who your point of contact would be for any issues or inquiries is crucial.

Bottom Line

Choosing an online mortgage lender is a significant decision that can impact your financial situation for years to come. Therefore, it’s critical to take the time to carefully evaluate each lender. From comparing interest rates to analyzing the type of customer service they offer, there are many factors to consider in this selection process.

We’ve touched upon some of the best online mortgage lenders available today. These lenders were chosen based on their competitive rates, comprehensive loan options, excellent customer service, and user-friendly platforms. However, remember that the “best” lender will vary depending on individual circumstances, and the top choices for others might not be the best for you.

While online mortgage lenders offer convenience and often competitive rates, they also come with their unique set of challenges. It’s vital to remember that transparency, trustworthiness, and a clear understanding of the terms and conditions are paramount in any financial decision, including choosing a mortgage lender.

We encourage you to conduct your own research and take advantage of online tools and resources that many of these lenders offer. Shopping around and comparing multiple lenders will help you find the best mortgage fit for your specific needs.

Remember, a mortgage is a long-term commitment. The time and effort spent in making a careful, well-researched decision now will pay dividends over the life of your loan. Happy home hunting!

Source: crediful.com

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[Note from editor: We publish a Weekly Transmission for 190+ Geek Estate Mastermind members that consists of long form articles covering the spectrum from shipping container co-living spaces to the battle for listing acquisition in the first iBuyer world war.

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BY DREW MEYERS
Originally Published: June 27th, 2019

The topic no one wants to touch with a nine foot pole, at least until Moerhl v. National Association of Realtors (NAR).

Commissions.

Startup after startup has taken aim in the marketplace at commonly accepted agent commission practices. Redfin launched in 2005 as a discount brokerage. In 2015, one of its founders, David Eraker, took another stab at slicing commissions with Surefield. GoldenKey went belly up, as did SideDoor. HomeBay, Reali and Trelora are more recent attempts and more will arrive on the scene pushing the same theme.

Opendoor’s CEO has even gone so far to say that they’re working to make the cost of buying and selling zero (locked).

Seemingly, everyone — except agents, of course — believes that agents are overpaid, although amid all the shots being fired, nothing has taken hold.

But what if there is a segment where the opposite is true? Where the opportunities for commissions are driven up, not down?

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In the technology world, and more specifically, the venture capitalist world, the word “disrupt” gets thrown around an awful lot. Too much really. There’s even a Disrupt conference.

Every new business these days seeking millions of dollars in funding has grand plans to disrupt the status quo, whatever that might be in a given industry.

Of course, many great (and silly) ideas never actually materialize because of the many hurdles a company must climb to effect change.

But that hasn’t stopped Lenda, a California-based online mortgage refinance shop, to dream the impossible dream.

Mortgages in Seconds? Yeah Right…

  • Lenda’s ultimate goal is to fund mortgages in seconds
  • As opposed to weeks or months
  • A lofty goal but one that isn’t unique to the disruptors
  • You can’t argue that the mortgage industry is in need of change and could definitely be a lot faster

Lenda apparently has plans to eventually fund mortgages in a matter of seconds, as opposed to days or even months.

At the moment, they’re being a little more reasonable, shooting for 21 days from application to close, as opposed to the industry average of 39 days, per the latest Ellie Mae Origination Insight Report.

However, their near-term goal is to get that number down to a week (7 days), and eventually 48 hours. If that all pans out, their “mortgages in seconds” mantra could potentially become reality.

And while it all sounds crazy, part of me is thinking, “Why not?” Why is the mortgage industry the same as it has always been? Why can’t a company come along and pull an “Uber” and make a meaningful change in this space as well?

I’m assuming doubters will first point to the regulatory landscape, which makes it difficult to get anything done quickly in the mortgage world. All that paperwork is also a concern.

Not to mention the many different parties that must all come together to get a home loan funded.

No Middleman or Sales Staff at Lenda

  • One thing they’ve done to differentiate themselves
  • Is cut out the sales staff
  • This should translate to a cheaper home loan for the borrower
  • They also rely on technology like electronic delivery of paperwork to speed things up and make life easier for homeowners

But Lenda claims to do things differently, working exclusively online to get loans funded quicker and more efficiently.

For example, you can fill out the mortgage application online and use DocuSign to send over electronically signed documents, which translates to 40 fewer pages to print, sign, and fax. It’s also good for the environment.

During the application process it tells you how many pages of paperwork you’ll avoid, along with the number of headaches. Cute.

In the future, they hope to provide instant approvals after a credit pull, at which point an exact list of conditions would be generated. And borrowers could soon have the ability to pull real-time data, such as bank statements and tax returns, into the application.

They’ve also cut out the “middleman,” aka the sales rep, to both streamline the process and cut down on costs.

Lenda claims to save at least $8,000 per refinance by eliminating the mortgage broker and going with a direct-to-consumer approach, although the rates/fees I saw didn’t seem all that different from what I’ve seen elsewhere.

Why Use Lenda to Get a Mortgage?

  • The home loan process is completed entirely online
  • They might offer lower mortgage rates thanks to their tech and lack of salespeople
  • You can get a $500 lender credit if someone refers you to Lenda
  • Might be able to close faster than traditional lenders
  • But they only offer 30-year and 15-year fixed-rate mortgages

If you’re wondering why you should choose Lenda, one key advantage is that the home loan process is entirely digital. Aside from being easier, it might result in a faster loan closing.

Additionally, Van den Brand says mortgage interest rates are generally about an eighth- to a quarter-percent lower than other lenders, and that the APR will be lower via reduced closing costs.

That’s all good and well, but will they actually be able to shorten the process and reduce the burden on the consumer? Time will tell on that one.

They’ve certainly got a good group of investors, including Tom Fallows of Google Shopping Express, Winklevoss Capital (those Facebook twins), Kiva investor Sundeep Ahuja, and PayPal investor Jared Kopf, to name but a few.

Lenda recently received $1.54 million in seed money and plans to enter several more states in the future. They currently lend in Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia, and Washington, though they’re licensed in 43 states.

At the moment, they only offer 30-year and 15-year fixed-rate mortgages backed by the underwriting guidelines of Fannie Mae and Freddie Mac. So there are some loan type limitations that won’t satisfy all homeowners.

Future product offerings include jumbos, HARP, FHA, and CRA loans, and perhaps adjustable-rate mortgages.

Now just imagine if companies like Opendoor and Lenda come together.  We’ll be able to buy, sell, and finance homes in hours, or maybe even seconds with nothing more than our smartphones.

While they only operate in 12 states currently, Lenda expects to go live in other states in the near future.

Update: In early 2019, Lenda became Reali Loans thanks to the company’s acquisition by fintech startup Reali.

Source: thetruthaboutmortgage.com

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A new startup by the name of “BoardRE” hopes to change the real estate game when it comes to all-cash home buyers and the rest of us.

Even if you don’t have the necessary funds, you can still present yourself as an all-cash buyer to a home seller with BoardRE and ideally take advantage of the many benefits that go with it.

How BoardRE Works

  • Board buys a property on your behalf using all cash
  • Then provides you with a mortgage via their finance department
  • You are underwritten for the loan prior to an offer being submitted
  • To ensure you’ll qualify for the home purchase if accepted by the seller

The way BoardRe (also known simply as Board) works is relatively simple.

Similar to obtaining a mortgage, you submit a loan application to Board, which then underwrites the loan to determine a maximum purchase price.

Assuming your income, assets, and credit all pass muster, you’ll get approved for a certain cash offer.

This is similar to the Reali Cash Offer, though that company also acts as your real estate agent.

The Board Offer Letter

As seen in the screenshot above, the pre-approval letter will detail the cash available, along with the proposed mortgage rate you’ll qualify for once you take out a mortgage.

They say it typically takes less than two hours (and always the same day if during normal business hours) to approve an offer once you find a home.

This is accomplished via automated underwriting and by pulling a desktop appraisal to quickly determine if the offer price fits with the market value.

Board can even place a cash offer the same day via express underwriting if submitted by 3pm local time and you provide all necessary documentation.

The company will then make an offer for your desired property, and if accepted, will purchase the property on your behalf.

At that time, you will need to wire the earnest money deposit to an escrow company that matches the amount of funds Board provided to the seller.

The home is then “reserved for you” until you close your mortgage with Board, which they estimate will take two weeks or less.

In terms of mortgage choice, the company does not offer FHA loans, but they do have down payment options as low as 5%.

Once the mortgage is closed, you’ll own the home and make mortgage payments each month like you would in a typical mortgage transaction.

How Much Does BoardRE Cost?

  • They don’t charge a fee to use their service
  • Instead they make money as your mortgage lender
  • So you must use them to obtain a home loan on the purchase
  • Board says they offer competitive mortgage rates from commission-free loan officers

You might assume there’s a fee to use their service seeing that it could provide some advantages over purchasing a home with a mortgage.

However, Board doesn’t charge home buyers, sellers, or real estate agents any additional fees.

Instead, the company makes money as the mortgage lender and generates revenue via that channel.

To that end, you’ll obviously want to make sure their mortgage rates and loan programs are attractive.

They say their rates are competitive because their loan officers aren’t commission-based.

Either way, you can always refinance your mortgage in the future assuming you qualify.

Speaking of, their “DropRate program” constantly monitors interest rates and notifies you if there’s an opportunity to save money or build equity faster.

Back to those potential pros – all-cash offers may boost the odds of getting your bid accepted over a prospective buyer who must use a mortgage.

An additional benefit could be securing the property for less than a borrower relying upon a mortgage since the seller might be more willing to accept less for a more reliable close.

Board cites industry data via Redfin that cash buyers are apparently 97% more likely to win the home if there’s a multiple bid situation versus buyers using a mortgage.

They can also close 10 times faster than the buyers needing a mortgage to close.

Perhaps even sweeter, it’s possible to get a discount on the purchase price if the underlying property is less competitive.

For example, a home buyer using Board to make an all-cash bid on a property that has been sitting could maybe lowball and get their offer accepted.

What to Watch Out For

  • An all-cash offer may not always be advantageous
  • Some real estate markets are more competitive than others
  • Also note that it’s possible to lose your earnest money if you don’t close the transaction
  • Board could save you time and money if all goes right

While this sounds like a good service, one could question the necessity in a softening real estate market where bidding wars are becoming less common.

Obviously, this varies by market, with some hot spots still quite competitive, and maybe always in demand.

But other regions of the country may not have the need for all-cash offers.

Board does recommend that you use a real estate agent who can negotiate on your behalf, and navigate things like the home inspection.

Speaking of, you’ll be required to pay for an inspection and sign off on it before Board purchases the property.

It’s always important to take the home inspection very seriously, whether you’re buying directly or a company like Board is buying on your behalf.

Some other issues that may arise include the appraisal coming in low, which could jeopardize financing, or experiencing some adverse event like job loss along the way.

If either happen, Board will try to save the deal, but if they’re unable to, they will refund the earnest money and sell the home on the open market at their expense.

But if you simply decide not to go through with the purchase after Board buys the home, you will lose your earnest money deposit and could even be responsible for additional costs associated with the resale of the property.

In other words, make sure you actually want to purchase the property in question!

All in all, it’s certainly an interesting idea that could make the whole process of buying and financing a home a lot easier, faster, and potentially cheaper too.

Board is backed by Y Combinator, Global Founders Capital, DN Capital, Ilya Kirnos, and Peter Thiel’s 1517 Fund.

Update: In early October 20202, BoardRE changed its name to “Accept.inc.” The name change is an effort to align with the company’s mission of giving home buyers a better chance at having their offers accepted.

Other companies in the all-cash offer space include HomeLight, Reali, and UpEquity.

Source: thetruthaboutmortgage.com

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If you’re thinking about selling your home, you’ve got a lot of options.

It’s not 2012 anymore, when you simply enlisted the services of a real estate agent and went on about your day.

Or bravely went down the for-sale-by-owner (FSBO) path, a much less common scenario.

Today, there are many more ways to unload a property thanks to the disruptors.

What Is an iBuyer?

  • It stands for instant buyer, a company that buys your home and then sells it shortly after
  • iBuyers offer all-cash in as little as 24 hours
  • Can choose your own close date and sell property as-is
  • Downside is offer will likely be below traditional market offers and fees and repair costs still apply

By now, you’ve probably heard the phrase “iBuyer.”

The term iBuyer is short for “instant buyer.” These companies buy homes almost immediately, with all-cash offers generated in as little as 24 hours, and then sell them not long after.

While the valuation methods might differ from company to company, the name of the game is speed.

With some companies, you simply enter your address into an online form and provide details about your home and the computers do the rest.

They instantly run comparable sales and factor in any improvements your home has to generate a so-called competitive market offer.

Assuming you like their offer, they’ll come by your home and verify the home is in the condition described, and adjust their offer to account for any necessary repairs.

Others might come to your home after you request an offer online, and once they see the property in person, you’ll receive an offer shortly thereafter.

Either way, you’ll get an offer fast, and it’ll be all-cash, meaning there won’t be any pesky mortgage lenders to deal with, or home buyers with cold feet who walk away last minute.

These iBuyers are generally happy to buy homes in any reasonable condition, without you having to worry about finding an agent, listing it, cleaning it, repairing it, staging it, giving tours, and waiting weeks or months for it to sell.

Some of the largest iBuyers include Offerpad, Opendoor, RedfinNow, and Zillow Offers. And even some real estate brokerages are getting into it, including Keller Offers from Keller Williams.

Selling a Home Isn’t Fun

The reason iBuyers exist is because selling a home is basically the worst.

In fact, Zillow’s 2019 Consumer Housing Trends Report found that 95% of home sellers were stressed by some aspect of the process.

As you can see from their chart of despair, home sellers have a lot of worries and concerns, with not knowing when the home would sell topping the list.

It was followed closely by uncertainty about it selling for the right price, having to prep and/or make improvements, concerns the offer would fall through, and timing the sale with a new home purchase.

These are all very legitimate issues to stress about, and younger homeowners are even more likely to be stressed by it all.

Enter Zillow Offers! But seriously, it is hard to part with a half-million-dollar property for the sheer fact that it’s half-a-million dollars.

That just comes with the territory – as a homeowner, you’ve got responsibilities that renters do not.

You need to maintain your home, make repairs, keep it updated, pay lots of bills every month, property taxes, homeowners insurance, and so on.

And when it comes time to sell, you’ve got to do a lot of things to ensure it sells for the right price. Or you can use an iBuyer…

The Pros of iBuyers

  • You can sell your home very quickly
  • You don’t need to find a real estate agent
  • You don’t need to clean it, repair it, stage it, or hold open houses
  • You can choose your own closing date to coincide with a new home purchase

As noted, iBuying is all about speed and convenience. We can actually use Zillow’s list from above to highlight the many advantages to using an iBuyer.

First, you can choose your closing date with an iBuyer, so that completely eliminates the fear of a property selling in a desired time frame.

Next, they tell you the price upfront, so if you’re happy with said price, there’s no stress.

Third, iBuyers will make repairs themselves, so you don’t have to make them. Of course, there’s a cost, but savvy home buyers will also make requests for repairs, so it’s somewhat awash.

See Curbio for an alternative to paying for repairs out-of-pocket prior to listing.

Fourth, you don’t have to worry about the offer falling through because it’s a large company paying with cash that has done its diligence and isn’t going to have second thoughts.

Fifth, and perhaps one of the biggies to iBuying, is timing the sale of your home with the purchase of a new replacement home.

They totally alleviate this concern because your offer is guaranteed and you get to choose your closing date.

This also covers the lack of control with the selling process and timeline, and not knowing if the buyer is “serious.”

You also completely forego the touring (open houses), staging, and cleaning necessary with a traditional home sale.

In terms of negotiating, most iBuyers will probably say the price is the price, but you can still argue if you’ve made improvements and disagree with their assessment.

But you’ll likely find that they aren’t willing to budge much if at all.

The Cons of iBuyers

  • The price will likely be well below what a traditional buyer would offer
  • There are still fees that must be paid to the iBuyer in lieu of real estate agent commissions
  • Repairs will also cost you even if you don’t need to complete them yourself
  • Buying and selling homes shouldn’t necessarily be rushed

We’ve highlighted some of the pros of iBuying, namely the quick and easy process, and the all-cash offer. Sounds like a no-brainer, right?

Unfortunately, there’s a cost to the convenience. Sure, you can have the valet park your car instead of walking a block to the restaurant, but it’ll cost you $5.

That might be worth it though – with an iBuyer, the price could be significantly more devastating to your wallet.

You might miss out on $25,000 or more because of the inconvenience of selling yourself. Ouch!

At the end of the day, your competitive offer from an iBuyer is likely going to be significantly less than what the home might appraise for and/or what a traditional real estate agent would sell it for.

Additionally, iBuyers charge fees in place of real estate agent commissions, which while seemingly offsetting one another, probably don’t because of the lower offer price.

The old cliché is that a real estate agent’s commission is covered via a higher sale’s price. So even if they get paid 5-6% of the sale’s price, the home sells for that much more.

That’s the theory at least.

When all is said and done, you’ll likely receive less in your pocket if you use an iBuyer to sell your home, once factoring in their fee, the in all likelihood lower offer, and the cost of any repairs.

The question you need to ask is if it’s worth the price. There are a lot of things we probably don’t want to do, which we could have someone else do for us.

But there’s a cost involved. And when we’re talking about a very large transaction, the price is likely going to be steep.

Of course, you can always take the iBuyer up on their free offer to see if it’s close to what you’d get going the traditional route.

In some cases, it may be worth the convenience, especially if you’re trying to buy a replacement home.

But do your homework. You might need those extra proceeds for that subsequent home purchase.

An alternative might be to use a flat-fee listing company like Reali, which uses traditional real estate agents but doesn’t charge the percentage fee.

Source: thetruthaboutmortgage.com

Apache is functioning normally

If you’re thinking about selling your home, you’ve got a lot of options.

It’s not 2012 anymore, when you simply enlisted the services of a real estate agent and went on about your day.

Or bravely went down the for-sale-by-owner (FSBO) path, a much less common scenario.

Today, there are many more ways to unload a property thanks to the disruptors.

What Is an iBuyer?

  • It stands for instant buyer, a company that buys your home and then sells it shortly after
  • iBuyers offer all-cash in as little as 24 hours
  • Can choose your own close date and sell property as-is
  • Downside is offer will likely be below traditional market offers and fees and repair costs still apply

By now, you’ve probably heard the phrase “iBuyer.”

The term iBuyer is short for “instant buyer.” These companies buy homes almost immediately, with all-cash offers generated in as little as 24 hours, and then sell them not long after.

While the valuation methods might differ from company to company, the name of the game is speed.

With some companies, you simply enter your address into an online form and provide details about your home and the computers do the rest.

They instantly run comparable sales and factor in any improvements your home has to generate a so-called competitive market offer.

Assuming you like their offer, they’ll come by your home and verify the home is in the condition described, and adjust their offer to account for any necessary repairs.

Others might come to your home after you request an offer online, and once they see the property in person, you’ll receive an offer shortly thereafter.

Either way, you’ll get an offer fast, and it’ll be all-cash, meaning there won’t be any pesky mortgage lenders to deal with, or home buyers with cold feet who walk away last minute.

These iBuyers are generally happy to buy homes in any reasonable condition, without you having to worry about finding an agent, listing it, cleaning it, repairing it, staging it, giving tours, and waiting weeks or months for it to sell.

Some of the largest iBuyers include Offerpad, Opendoor, RedfinNow, and Zillow Offers. And even some real estate brokerages are getting into it, including Keller Offers from Keller Williams.

Selling a Home Isn’t Fun

The reason iBuyers exist is because selling a home is basically the worst.

In fact, Zillow’s 2019 Consumer Housing Trends Report found that 95% of home sellers were stressed by some aspect of the process.

As you can see from their chart of despair, home sellers have a lot of worries and concerns, with not knowing when the home would sell topping the list.

It was followed closely by uncertainty about it selling for the right price, having to prep and/or make improvements, concerns the offer would fall through, and timing the sale with a new home purchase.

These are all very legitimate issues to stress about, and younger homeowners are even more likely to be stressed by it all.

Enter Zillow Offers! But seriously, it is hard to part with a half-million-dollar property for the sheer fact that it’s half-a-million dollars.

That just comes with the territory – as a homeowner, you’ve got responsibilities that renters do not.

You need to maintain your home, make repairs, keep it updated, pay lots of bills every month, property taxes, homeowners insurance, and so on.

And when it comes time to sell, you’ve got to do a lot of things to ensure it sells for the right price. Or you can use an iBuyer…

The Pros of iBuyers

  • You can sell your home very quickly
  • You don’t need to find a real estate agent
  • You don’t need to clean it, repair it, stage it, or hold open houses
  • You can choose your own closing date to coincide with a new home purchase

As noted, iBuying is all about speed and convenience. We can actually use Zillow’s list from above to highlight the many advantages to using an iBuyer.

First, you can choose your closing date with an iBuyer, so that completely eliminates the fear of a property selling in a desired time frame.

Next, they tell you the price upfront, so if you’re happy with said price, there’s no stress.

Third, iBuyers will make repairs themselves, so you don’t have to make them. Of course, there’s a cost, but savvy home buyers will also make requests for repairs, so it’s somewhat awash.

See Curbio for an alternative to paying for repairs out-of-pocket prior to listing.

Fourth, you don’t have to worry about the offer falling through because it’s a large company paying with cash that has done its diligence and isn’t going to have second thoughts.

Fifth, and perhaps one of the biggies to iBuying, is timing the sale of your home with the purchase of a new replacement home.

They totally alleviate this concern because your offer is guaranteed and you get to choose your closing date.

This also covers the lack of control with the selling process and timeline, and not knowing if the buyer is “serious.”

You also completely forego the touring (open houses), staging, and cleaning necessary with a traditional home sale.

In terms of negotiating, most iBuyers will probably say the price is the price, but you can still argue if you’ve made improvements and disagree with their assessment.

But you’ll likely find that they aren’t willing to budge much if at all.

The Cons of iBuyers

  • The price will likely be well below what a traditional buyer would offer
  • There are still fees that must be paid to the iBuyer in lieu of real estate agent commissions
  • Repairs will also cost you even if you don’t need to complete them yourself
  • Buying and selling homes shouldn’t necessarily be rushed

We’ve highlighted some of the pros of iBuying, namely the quick and easy process, and the all-cash offer. Sounds like a no-brainer, right?

Unfortunately, there’s a cost to the convenience. Sure, you can have the valet park your car instead of walking a block to the restaurant, but it’ll cost you $5.

That might be worth it though – with an iBuyer, the price could be significantly more devastating to your wallet.

You might miss out on $25,000 or more because of the inconvenience of selling yourself. Ouch!

At the end of the day, your competitive offer from an iBuyer is likely going to be significantly less than what the home might appraise for and/or what a traditional real estate agent would sell it for.

Additionally, iBuyers charge fees in place of real estate agent commissions, which while seemingly offsetting one another, probably don’t because of the lower offer price.

The old cliché is that a real estate agent’s commission is covered via a higher sale’s price. So even if they get paid 5-6% of the sale’s price, the home sells for that much more.

That’s the theory at least.

When all is said and done, you’ll likely receive less in your pocket if you use an iBuyer to sell your home, once factoring in their fee, the in all likelihood lower offer, and the cost of any repairs.

The question you need to ask is if it’s worth the price. There are a lot of things we probably don’t want to do, which we could have someone else do for us.

But there’s a cost involved. And when we’re talking about a very large transaction, the price is likely going to be steep.

Of course, you can always take the iBuyer up on their free offer to see if it’s close to what you’d get going the traditional route.

In some cases, it may be worth the convenience, especially if you’re trying to buy a replacement home.

But do your homework. You might need those extra proceeds for that subsequent home purchase.

An alternative might be to use a flat-fee listing company like Reali, which uses traditional real estate agents but doesn’t charge the percentage fee.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Everyone likes a discount, right, even if it’s on a small one-time purchase that equates to a nominal amount. For one reason or another, it just feels like a win.

It’s obviously even sweeter if you get a discount on a big-ticket item, as the savings will be much larger.

Better yet, how about a discount on something that you could be paying off for the next 360 months, like your home loan? Now we’re talking!

I did some research and came up with a list of mortgage lenders with the “best mortgage rates” to consider if you’re in the market to finance a new home purchase or refinance an existing mortgage.

There are literally thousands of mortgage lenders out there, so it’s easy to miss some along the way if comparison shopping.

Here are 10 that might offer a discount relative to other banks and lenders out there, not only because they seem to offer low mortgage rates, but also limited or no lender fees.

The one caveat here is no one mortgage lender can be the cheapest all of the time, for all borrowers.

So be sure to always take the time to shop around and get multiple quotes, even if it takes some additional legwork. Sure, it’s not fun but nor is spending more money.

Also, if you want the best mortgage rate, you’ve got to be a good borrower.

That means coming to the table with an excellent credit score, a decent down payment, and checking all the other boxes that affect mortgage rates.

You can’t expect the lender to do all the heavy lifting.

Better Mortgage

Aside from being a tech-savvy lender with a digital mortgage platform, Better Mortgage also prides themselves on not charging a loan origination fee. Or any lender fees or commissions for that matter.

Often, this fee can be 1% of the loan amount, so if you take out a $300,000, that’s $3,000 right there. Then there might also be additional fees for processing, underwriting, and so on.

They also openly advertise their daily mortgage rates right on their website, so they’re pretty transparent about their pricing as well.

In summary, you could get a discount and breeze through the home loan process thanks to their technology – they can fund 100%-digital loans without even a single phone call.

They’ve got a 4.6-star rating out of 5 on LendingTree with a 91% recommendation rating.

CIT Bank / OneWest Bank

If you choose to work with CIT Bank or OneWest Bank to get your home loan, they provide a number of discounts on top of their already low mortgage rates.

This includes a $525 cash back bonus if you have or open a CIT Bank or OneWest Bank deposit account before closing on your mortgage with them.

Additionally, they offer mortgage rate discounts if you make new deposits, including 0.10% off your rate with 10% of loan amount in new deposits, and 0.25% off if you can muster 25% of the loan amount in new deposits.

At last glance, they had a 4.5/5 on Zillow based solely on their home loans business, so they come highly rated as well.

Costco Mortgage

Folks looking for a deal often head to Costco, and you can actually shop your mortgage with the big-box retailer as well.

While not a direct mortgage lender, they have partnered with a variety of vetted lenders that have agreed to cap their lender fees.

For example, Gold star members pay lender fees of $650 or less, while Executive members only pay lender fees of $350 or less.

If the mortgage rates from their partner lenders are competitive, you might wind up with a low rate and limited fees, which is an excellent combination.

The Mortgage Program for Costco Members has a 4.8-star rating out of 5 based on Trustpilot, and the individual lenders involved have similarly-high ratings from past customers.

Intelliloan

I added Intelliloan to this list because they won’t stop talking about their mortgage rates. In fact, the first thing you’ll see if you visit their website is mortgage rates.

Their latest refinance rates match their APRs, which means they’re advertising their interest rates without any lender fees or discount points.

The company also offers a Rate Protection Promise where they’ll refinance you without lender fees if interest rates fall significantly within three years of your initial loan closing.

They’ve got excellent reviews across all the major ratings websites, including a 4.9-star rating out of 5 on LendingTree, with a 98% recommend score.

LoanFlight Lending

The holy grail for homeowners is a low mortgage rate with limited or no fees.

After all, a low rate that requires you to pay multiple discount points might not truly be low, but one that only requires a $1 in fees is usually as good as it looks.

LoanFlight Lending tends to advertise on Zillow a lot, and often features some of the lowest fixed rates listed, along with just $1 in lender fees.

That’s a tough combination to beat if you’re looking to save on your mortgage. They also have very good customer reviews to boot, with a 4.76-star rating on Zillow and a 4.7 on LendingTree with a 91% recommend rate.

The only downside appears to be the fact that they’re licensed in just 12 states.

Lower Mortgage

As I’ve said before, with a name like Lower Mortgage, you kind of have to offer low mortgage rates. Oh, and low lender fees too.

They say they do both, and the cherry on top is a Free Refi for Life deal, whereby you won’t be charged any lender fees on a future refinance with the company.

So if 30-year fixed rates do go down and they happen to be offering low rates relative to the other guys, you can get that new low rate sans fees.

The company also has great reviews, including a 4.9-star rating out of 5 based on LendingTree with a 99% recommendation rate.

Reali Loans

Formerly known as Lenda, Reali Loans, Inc. is the home of “no-nonsense home loans.” What that means is you won’t be charged traditional loan commissions or any lender fees.

In the past, I found that their interest rates were quite low when I played with the little rate slider on their website.

Like other fintech newcomers in the mortgage space, they lean heavily on technology to make the loan process less cumbersome and faster overall. That tech also allows them to offer more competitive rates to borrowers.

Reali Loans currently has a 4.57-star rating on Zillow and similarly excellent reviews on Trustpilot.

Redfin Mortgage

If you’re buying a home in certain states, one perhaps unexpected mortgage lender to consider is Redfin Mortgage.

Yes, the real estate brokerage also launched a home lending division and seems to have really competitive mortgage rates.

Additionally, they don’t charge lender fees, so the mortgage APR should be just as low as the mortgage rate.

The only downside is they don’t offer refinance loans, at least not at the moment. But that could change in the future.

On top of the low rates and lack of fees, they offer a $1,000 mortgage closing guarantee that promises to get you to the finish line in either 25 or 30 days (depending on the type of pre-approval) or you’ll receive a check.

Sebonic Financial

This so-called digital startup, which is actually the fintech arm of Cardinal Financial, a top-40 mortgage company nationally, often advertises mortgage rates with just $1 in lender fees.

In other words, you’re typically getting a no cost loan from Sebonic Financial, at least with regard to lender fees.

And they seem to still offer highly competitive refinance rates relative to other lenders, which often charge the usual fees that can amount to thousands of dollars due at closing.

They are also a highly-rated mortgage lender, with a 4.49-star rating out of 5 based on more than 3,000 customer reviews on Zillow.

Wyndham Capital Mortgage

Lastly, we’ve got Wyndham Capital Mortgage, which promises no hidden lender fees and competitive, below market mortgage interest rates

Aside from no hidden fees, they also don’t charge a loan origination fee. So if their mortgage and refinance rates are also low, that’s a pretty solid deal.

On top of that, they say they can offer discounts on costly things like title insurance because of their relationships with preferred settlement agents.

In terms of customer satisfaction, they’ve got a 4.8-star rating out of 5 on LendingTree from nearly 7,000 reviews, and 99% of customers would recommend them.

There are many more lenders out there, and you should certainly search locally as well as online to explore all of your options, including credit unions, local mortgage brokers, and more.

Remember, your monthly mortgage payment will stay with you for a long time, so putting in a few extra hours at the start can really pay dividends over the years.

Source: thetruthaboutmortgage.com

Apache is functioning normally

One of the trickiest aspects of homeownership is unloading an existing property while acquiring a replacement.

Aside from being stressful, it can also be difficult it not impossible thanks to financing constraints and unwanted contingencies, which a home seller likely won’t accept in a hot market.

Unfortunately for those in this predicament, real estate is red hot at the moment, thanks to a lack of inventory and record low mortgage rates.

This means contingent offers, where you must sell before you commit to buy, aren’t likely to be accepted. And worse yet, even an offer that requires a mortgage could be denied in favor of an all-cash offer.

Enter “Knock Home Swap,” which as the name implies, looks to solve this common conundrum by giving the concurrent home buyer/seller some helpful tools to compete.

How Knock Home Swap Works

  • First you get pre-approved for a mortgage with Knock Lending LLC
  • This allows you to make offers on a replacement home with down payment assistance included
  • Once you find the right home you can move in and make just the new mortgage payment
  • In the meantime, your old home will be prepped, listed, and sold while they cover monthly mortgage payments

We’ve heard of home swapping before, with it being a common feature with popular iBuyers.

For example, Opendoor, HomeLight, Reali, and Offerpad all offer trade-in programs where you can sell them your home and buy one from them at the same time.

But unlike an iBuyer, Knock doesn’t purchase your old home from you—instead, it’s sold on the open market via a licensed real estate agent. Ideally for a much higher price.

To close the buy/sell gap, they integrate a “competitive mortgage,” along with an interest-free bridge loan (similar to the one Compass offers) that covers the down payment on the new home, along with mortgage payments on the old home.

You can also claim up to $25,000 for “home prep and repairs” on the old property so it sells quickly and for top dollar, similar to the service provided by Curbio.

So it’s almost like Knock combined several different fintech offerings into one to make the home selling, buying, renovating, and mortgage financing process one smooth transaction.

In exchange for all these services, Knock charges a 1.25% convenience fee when you close on your new home, which can be rolled into the mortgage if you wish.

Once your old home sells, you pay back Knock for any monies advanced, such as down payment assistance, mortgage payments, and home preparation costs.

Speaking of, they’ll advance up to six mortgage payments on your old home, $25,000 in home renovation costs, and up to 5% down payment on the new purchase.

Which Homes Qualify for Knock Home Swap?

  • Property must be located in their service area (new markets launching soon)
  • Must be single-family residence, condo, or townhome that is eligible for traditional home loan financing
  • Title must be clear and held by seller
  • Must be owner-occupied or vacant (no tenants)
  • Knock must value home at $150k or higher (or combined value of old/new homes must be at least $350,000-$400,000)

At the moment, Knock Home Swap is live in a limited number of cities, mostly located in Florida and nearby states.

Those cities include Atlanta, Austin, Charlotte, Dallas-Fort Worth, Fort Lauderdale, Houston, Jacksonville, Orlando, Miami, Phoenix, Raleigh-Durham, San Antonio, Tampa, and West Palm Beach.

Several more markets are expected to launch this year and in 2021, so stay tuned.

It should be noted that both homes must be in those markets in order to qualify. Additionally, the property cannot be in an age-restricted community, nor can it be a distressed sale or bank-owned.

They also won’t go for homes with a solar lease, unpermitted additions, or significant foundation or water damage.

It is available exclusively through local broker and real estate agent partners who have been trained as Knock Certified Agents.

Why Use Knock Home Swap?

  • You can buy a new home before selling your old home
  • You can get down payment assistance (up to 5%) for new home purchase
  • They provide the home loan and bridge financing that pays old mortgage before you sell
  • Can get up to $25,000 in home renovation costs fronted to sell your home for top dollar
  • Fee is only 1.25% plus standard real estate commissions and closing costs

There are several reasons why an existing homeowner might consider using a service like Knock Home Swap.

For one, it can be difficult to buy and sell a home at the same time because contingencies are often frowned upon.

So again, if the market is hot, or a particular property you have your eye on is popular with other buyers, the seller likely won’t accept a contingent offer.

Additionally, there can be complications when trying to juggle two mortgages at once, especially if affordability is already stretched.

There’s also the sheer timing of things when selling one property and acquiring another – will you need a leaseback before you move into the new home?

With Knock Home Swap, you can get the ball rolling on your new home and concurrently renovate and prep your old home to list, without worrying about where you’re going to live.

And you aren’t selling your home at a basement price to an iBuyer – it’s sold on the open market after suggested repairs are made, meaning it should go for a decent price.

Additionally, there’s more certainty overall if one company has approved your mortgage and is covering the old one while your former property sells.

In terms of gotchas, they do charge a fee of 1.25% for the service, which while not free, seems reasonable. I believe it’s based on the new home sales price.

Of course, they are also originating your mortgage and presumably taking full real estate agent commission on both the new home and the old home.

This could mean a standard fee of 2.5% to 3%, which might be more expensive than what other discount real estate brokerages charge.

Still, you seem to get a lot of good value out of it, and if the repairs they suggest result in a higher sales price for your home, it could cover the fees and then some.

Knock Lock and Shop

In early October 2022, the company unveiled a new solution known as “Lock and Shop,” which is basically a mortgage pre-lock option.

It allows prospective home buyers to lock an interest rate while shopping for a property to buy.

If rates go up during that time, they will enjoy their lower, locked interest rate regardless.

If rates happen to go down, they might receive the option of a float-down to capture some of that improvement.

The rate lock periods are being offered in 60, 75, 90, and 120-day increments, with longer lock periods resulting in higher interest rates. And vice versa.

The Lock and Shop feature can be used in conjunction with Knock Home Swap and Knock GO (Guaranteed Offer), which allows first-time home buyers to compete with all-cash buyers.

Knock also recently launched an interest-free equity advance loan that can be used to buy down your mortgage rate and/or increase your down payment to lower monthly mortgage payments.

It can also be used to cover the cost of a rate lock extension via the Lock and Shop program.

Source: thetruthaboutmortgage.com

UpEquity Review: They Can Make You an All-Cash Power Buyer in a Hot Housing Market

The latest company looking to tackle the buy before you sell quandary goes by the name “UpEquity.” They’re also making it easier for first-time home buyers to make a successful bid in a competitive market. It all has to do with their “proof of funds” approach to mortgage underwriting. Instead of simply providing a pre-approval,… Read More »UpEquity Review: They Can Make You an All-Cash Power Buyer in a Hot Housing Market

The post UpEquity Review: They Can Make You an All-Cash Power Buyer in a Hot Housing Market appeared first on The Truth About Mortgage.