Seattle-based tech-powered brokerage Redfin announced on Wednesday the expansion of Redfin Mortgage into North Carolina — its eighth market since first launching the lending arm in Texas in January 2017.
The company, which currently operates in the District of Columbia, Illinois, Minnesota, Pennsylvania, Texas, Virginia, and Georgia, has plans to expand in eight more markets in the coming months. Prior to North Carolina, Redfin’s expanded into Georgia.
“The Redfin Mortgage closing guarantee gives homebuyers an edge if they’re bidding on a home that has multiple offers,” Jason Bateman, head of Redfin Mortgage, said in a prepared statement.
Redfin Mortgage, which serves the company’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.
Redfin’s lending platform is designed to integrate with the company’s brokerage operations and Title Forward, Redfin’s title and settlement company. The company claims there are no incentives for Redfin agents to recommend a Redfin loan, although they do tout the potential savings of using Redfin for all home-buying 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.
Redfin went public in July 2017.