Guaranteed Rate formally rolled out its one-day mortgage approval program, in large part looking to help first-time home buyers
So far, the Chicago-based company has done more than 3,300 conforming purchase and refinance approvals with the same-day mortgage offering, for a combined balance of $1.1 billion.
"There's no reason that customers can't get approved for a loan in the same day," said Victor Ciardelli, president and CEO. "Three years ago, we had a thing called '10 days or bust.' Our goal was to get the process to where we could do loans in 10 days."
The current program is the culmination of that effort, with the borrower is getting a full approval in just one day. "It really was intended to just be a game-changing experience for the consumer," he said.
The approval is pending an appraisal but Ciardelli noted that certain loans are eligible for appraisal waivers from Fannie Mae and Freddie Mac.
Last week, Fannie Mae announced it is moving away from requiring an appraisal as
Approximately 72% of Guaranteed Rate's conforming production is now eligible for same-day mortgage with this nationwide expansion.
The company cited statistics that 28% of home sales right now are going to all-cash buyers. But having a speedy approval "is a game changer for first time home buyers," Ciardelli said. "There's no anxiety in this process at all because you can get the loan approved in a day and you know what you're able to qualify for."
Even if the borrower needs to get private mortgage insurance because they are only putting as little as 3% down, the application is still eligible for the same-day mortgage, he said.
Another way it is looking to help first-time home buyers, earlier this year Guaranteed Rate introduced
As part of the same-day mortgage program, Guaranteed Rate is offering borrowers a $250 credit if they use the company's digital mortgage technology to electronically sign the application package, and upload the supporting documentation on the same day.
The lender validates income, collateral, assets and credit and if approved, the borrower can close within 10 days.
But it is not just the borrowers that are enthused about
"The customers love it, but the referral partners like real estate agents and builders, financial planners, attorneys, they're blown away because when they refer a mortgage to somebody typically it takes 30 days to get it done and it's a pain in the butt," Ciardelli said. "The feedback from the real estate community, it's just been incredible."
Guaranteed Rate plans to eventually have this available for Federal Housing Administration, Veterans Affairs and jumbo mortgages.
