Whoa. In an unexpected turn of events, online real estate investment brokerage Redfin has launched a new mortgage service called, you got it right, \”Redfin Mortgage.\”
Well, maybe it wasn\’t so unexpected, simply because the mortgage trend is decidedly moving from refinances to purchases. Just ask Motto Mortgage…
So it\’s a very smart move for Redfin to get their hands on all that mortgage business, whilst gaining more control of the many moving parts mixed up in the typical home purchase.
In announcing this news, and the new website, the corporation noted that Redfin Mortgage \”is an additional step in our mission to put customers first.\”
Redfin Agents and Redfin the mortgage lender Will Work Together
- Redfin’s goal would be to streamline the home loan process
- By making a unified team from within the same company
- It can seamlessly integrate its lending platform with Redfin’s home-buying service
- To both speed things up and provide a smoother loan closing
The goal is very much harmony, and also savings, something Redfin introduced just as one online real estate brokerage a long time ago.
They only charge a 1.5% commission to sellers, that refer to as \”half the usual listing fee.\” Might be a little less as 2.5% is really a typical fee these days, however, they don\’t charge as much as a full-service brokerage.
And with many different, if not all, home buyers using Redfin to peruse real estate listings, Redfin-listed properties get prominence as they\’re always found at the top of the list. For many people they\’ll sell faster or perhaps for more, just that they\’ll get plenty of exposure.
Redfin Mortgage Will Begin to be a Purchase-Only Home Loan Lender
- At the moment they only offer home purchase loans
- Though eventually they might dip their toes into your refinance waters
- You must use a Redfin real-estate agent
- If you want to take advantage of their home lending platform
Initially, Redfin Mortgage will still only dole out mortgages to help customers purchase homes, with mortgage refinances perhaps coming later, as well as things go.
Redfin Mortgage will even only originate mortgages for the people home buyers represented by a Redfin agent. Mind you, Redfin credits back some of their commission for buyer’s unusual closing costs too, which can make the mortgage process run a bit smoother (and cheaper).
While Redfin Mortgage is appropriate exclusively with Redfin agents, it will not bar its people from still kicking it with other mortgage lenders or brokers they own relationships with.
And I\’m sure the buyer can always use whichever broker or lender they choose