Lenda, a startup company that officially launched its business in October of 2013, is offering customers an easier and less expensive way to refinance through technology. Lenda offers customers a 30 to 45 minute online re-financing product.
The company began with offering its streamlined and easier services to California and Washington and has now expanded into Oregon. As the company moves forward with expanding the services they offer and lenders they work with they hope to become a nationwide mortgage service provider by 2016.
A traditional mortgage re-finance is typically a two month process with a hefty fee of around $8,000. Lenda can offer customers the same services in a streamlined 2 and a half weeks with a $2,000 dollar fee through online refinancing. Lenda has taken time to get to know the customer and sees that homeowners are tired of telemarketers calling to offer them low rates they may never qualify for and extensive and expensive paperwork. With the online re-financing process Lenda has taken the telemarketer, loan officer, and mortgage broker out of the equation and is able to give customers a quicker and cheaper re-finance.
The online re-finance process starts when the customer signs on and puts in information such as zip code, mortgage amount, value of home, and best estimate of current credit score. Lenda’s sight then uses the information to search through 200 different products. Currently Lenda offers 10 to 30 year fixed mortgages and is looking to expand their products with some adjustable rate mortgages in the future. After Lenda searches for the mortgages that best fit the customer and generates a baseline rate quote the customer is then asked to input more information like property type, reason for loan and whether they are looking for a cash-out refinance which will further narrow the loan choices to the best two to four options for the customer. At the end of the process the customer will upload financial documents to back up the information they provided earlier. The customer is able to compare rates and see how each rate has been broken into various fees to decide on the best re-finance loan for them. This online process takes about 30 to 45 minutes instead of six to ten days with the traditional route.
The average Lenda fee is $2,000 tacked on to the fee rate of the lenders whose mortgage products they carry. The official loan carrier is Lenda and is stated on the final signed documents. Lenda hopes that through integrating with banks, insurance companies, payroll providers, the IRS and even social media sights that they can obtain customer information without uploading paperwork and get fees down to $0. Lenda says their goal is to have this accomplished by the third quarter of 2015. Lenda also hopes to streamline its underwriting process by getting underwriters information in real time making loans even more secure and decreasing risk which will in turn decrease mortgage prices. They also plan to work with peer-to-peer buyers like Lending Club and On Deck to bring down the selling of loans and bring prices down even lower.
Once Lenda has met their goals of providing a great re-finance product they plan to also offer home purchase loans. Lenda would work with real estate agents to take home buyers through a faster qualifying process. Before agents begin showing homes they direct their clients to the Lenda sight and buyers will know 100% for sure what they are qualified for and save time for everyone in the home buying process.
To date, Lenda will have worked with nearly 80 homeowners to process nearly $30 million dollars in loans by the end of this month.
Thank you to Mary Pong and Associates for their knowledge and expertise on this blog post. Mary is an expert in real estate and can assist you in every step of buying or selling your home on the Eastside in the Seattle area.