Real estate company Opendoor launches mortgage app
Digital real estate platform Opendoor has launched a financing app that the company says allows consumers to get pre-approved for a mortgage in under two minutes.
The app, which went live Thursday, June 2 for California customers, is part of the company’s product suite, which includes Buy with Opendoor, Opendoor Backed Offers and Opendoor Complete, the company announced on its website. .
“With this new finance app, Californians can better understand their loan options and the down payment they need to buy a home,” said Heather Harmon, co-director of Opendoor Homes Brokerage. “They just download the app and answer four short questions.”
The company said its technology then identifies loan options based on customer needs and criteria, including mortgage rate, guidelines and terms, and required down payment.
Opendoor said the app processes more than 10,000 data points in seconds to determine the maximum purchase price of a home a buyer can afford based on their qualifications and the minimum down payment for buyers. loan options available.
“Anyone who’s ever applied for a mortgage knows how tedious the process can be,” Harmon said. “Collecting countless documents from multiple sources. Endless questions about employment status or discrepancies between credit reports. It can take days or even weeks to get pre-approved. Just enough time to see a dream home pass to another buyer.
See also: Digitizing mortgages for fast transactions
PYMNTS looked at digitizing the mortgage process earlier this year in a conversation with Ziggy Jonsson, Head of Financial Products for Better Mortgage.
This company was founded after CEO Vishal Garg experienced the exact thing described by Harmon: he and his wife missed out on their dream home after weeks of navigating the mortgage process over the phone and through documents sent by mail.
“Lenders who aren’t online have to work through a lot of paperwork and do it by hand, and that’s why their turnaround time is typically 45-60 days to approve and process a loan,” Jonsson said. , adding that these traditional mortgage processes have fees and costs to cover the work that goes on behind the scenes.
By eliminating much of this work, a fully digitized platform also reduces costs, ultimately saving borrowers money that can be spent on buying a home, a Jonsson said.