Seattle-based tech-powered brokerage Redfin announced on Thursday the expansion of Redfin Mortgage into Minnesota — its sixth market since first launching the lending arm in Texas in January 2017.
Redfin spokesperson Alina Ptaszynski told Inman Minnesota was a logical next step for Redfin Mortgage since the company recently made Title Forward available in the state.
“Redfin launched Title Forward in Minnesota and Wisconsin earlier this year, so it’s a natural early market for Redfin Mortgage,” she said in an emailed statement to Inman. “Redfin Mortgage is built to seamlessly integrate with Title Forward, should a customer elect to use both services.”
Redfin Mortgage, serving Redfin’s buyer clients exclusively, offers fixed- and adjustable-rate conforming mortgages as well as jumbo loans for higher-priced homes with a 30-day closing guarantee. Redfin says the guarantee is based on the fact that all buyers go through a fully underwritten pre-approval process that includes these three contingencies:
- The buyer’s credit and employment status must remain fundamentally unchanged after pre-approval.
- The home must appraise for an amount equal to or more than the sale price.
- The borrower must provide proof of title commitment and homeowners insurance.
If Redfin Mortgage is unable to close within the guaranteed 30-day timeline, they promise to give buyers a $1,000 closing cost credit.
“Submitting an offer with a preapproval from Redfin Mortgage, backed by its 30-day closing guarantee, can help homebuyers earn the seller’s confidence that the deal will close on time, which can be a competitive edge in our hot real estate market,” said Twin Cities Redfin market manager Chris Prescott in a statement.
“Redfin Mortgage and Title Forward are working toward offering a totally digital transaction, from loan application to closing, with better service and lower fees,” he added. “The combination of Redfin’s full-service real estate brokerage, Title Forward, and now Redfin Mortgage is a hat-trick for homebuyers in the state of hockey.”
Lastly, Redfin says their lending platform is designed to integrate with the company’s brokerage operations and Title Forward, Redfin’s title and settlement company. Furthermore, Redfin maintains there are no incentives for Redfin agents to recommend a Redfin loan, although they do tout the potential savings of using Redfin for all homebuying needs.
Redfin Mortgage made its 2017 debut in Texas, with a goal to provide a digital process with better service, quick closings and lower fees by employing a shared technology platform, compensation based partly on customer satisfaction and an exclusive focus on Redfin buyer clients.
As of now, the company operates in District of Columbia, Illinois, Minnesota, Pennsylvania, Texas and Virginia, with plans to expand to several more markets in the coming months.
Prior to Minnesota, Redfin’s latest expansion was into Pennsylvania.