Better.com just launched their new product, the “One-Day Mortgage” at Inman Connect, one of the biggest real estate conferences out there. This product promises to change the game for those looking to buy a home. We have a few questions.
The One-Day Mortgage allows customers to apply for a mortgage, get pre-approved, lock in their rate, and receive a mortgage commitment letter all within 24 hours and closing within just three days. This option is available for the classic, standard mortgage with a downpayment of at least 3%.
How is this possible?
Well, Better has utilized new technology such as AI and machine learning (think similar technology as ChatGPT...which may have helped us craft this blog post you are reading right now) to streamline the process and make it more efficient.
But, before you get too excited, let’s dive into some facts.
The average time to get a mortgage approved is over a month, but with the right broker and shopping around, it could be done in as little as a week - so is a 6-day difference significant? Maybe, maybe not.
Also, the US government has a system called TRID, created for citizens’ protection, which prevents a mortgage from being approved in less than seven days. Better claims their One-Day Mortgage can still apply within this framework, but it will depend on the scheduling of when you apply.
Finally, getting an appraisal done in a short amount of time, which is necessary for a mortgage, may not be as realistic as people think.
So, what does all this mean for you?
At Choosi, our goal is to bring transparency to the market and help you make informed decisions. This new product from Better is a step in the right direction, but as always, it’s important to do your research and shop around for mortgage brokers. Finding the right fit for you and your needs is crucial, so don’t be afraid to take your time and be choosi!
We’ll be keeping a close eye on the One-Day Mortgage and its progress in the future. Who knows, it might just be the game changer the mortgage industry has been waiting for. Keep an eye out for more informative and always remember to stay choosi!
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