Last year, Redfin rolled out a mortgage lending operation as an expansion of its digital-focused real estate brokerage and title businesses.
Initially, Redfin Mortgage was available in Texas. Then, in October, Redfin expanded its mortgage operation to include Illinois as well. And late in the year, Redfin Mortgage expanded again, to Washington, D.C.
Now, Redfin Mortgage is expanding once again, and will begin offering mortgages to borrowers in Pennsylvania.
Redfin Mortgage currently offers fixed-rate and adjustable-rate conforming mortgages, as well as jumbo loans, along with fully underwritten pre-approvals, in every market it serves.
According to the company, Redfin Mortgage also offers a 30-day closing guarantee. If Redfin Mortgage is unable to fund a mortgage within 30 days, the company will give the homebuyer a $1,000 credit toward closing costs, subject to certain terms and conditions.
The company said that it can provide the 30-day closing guarantee because it fully underwrites the borrower before the buyer picks a property to purchase.
“The Redfin Mortgage 30-day closing guarantee gives homebuyers an edge in the current real estate market driven by low inventory and strong competition,” said Jason Bateman, head of Redfin Mortgage. “By earning the seller's confidence that the sale will close on time, offers from buyers with a Redfin Mortgage pre-approval letter will stand out from the crowd in a bidding war.”
As stated above, Redfin also offers digital-focused real estate brokerage and title businesses, and the move into mortgages is part of the company’s effort to touch every piece of the real estate transaction.
Redfin Mortgage “will primarily serve homebuyers who choose to work with a Redfin agent because Redfin Mortgage is built to seamlessly integrate with the Redfin home-buying service and, when desired, Title Forward, Redfin’s title and settlement company,” the company said.
But the company notes that Redfin real estate agents are “not compensated” for recommending Redfin Mortgage. Redfin agents will “continue to encourage customers to work with the lender that offers the best combination of service and rates,” the company said.
Redfin also said that it is working toward a “totally digital loan origination process, from loan application to closing, with better service and lower fees,” aiming to be the “fastest and most transparent way for homebuyers to receive a quote, get pre-approved for a loan and finance their home purchase.”
The company also said that it plans to continue adding new states throughout 2018.