Found a property to invest in but can’t get past the old-fashioned and tedious mortgage process?
I mean, just thinking about the numerous meetings with lenders and the amount of paperwork you need to fill out gives me heartburn. As an investor, you’d rather spend your valuable time meeting prospects than attend a lot of meetings with your lender.
There are a lot of properties up for sale and there are a ton of options for homebuyers to buy one, but the process of getting a mortgage – despite tech advances – is still done mostly offline.
Here’s where a New York-based start-up comes in...
Morty, founded by Brian Faux, raised almost $3,000,000 to fund their innovative way of underwriting mortgages and making it available to the masses.
What is Morty?
Founded in January 2016, Morty provides service through digitizing mortgage brokering. The company aims to give homebuyers the convenience of having their website verify potential borrower’s information online.
Morty uses high-tech algorithms and provable online data to minimize the time it takes to apply for a mortgage. You’ll love this… it eliminates the time wasted through printing, scanning or emailing your bank statements or credit. With Morty, you can now do everything digitally through linked data sources.
Another advantage Morty has over the traditional mortgage process is that it’s free. No, really. They receive commissions from their participating banks to underwrite people’s loans and qualify them.
The company currently operates in 8 states:
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Washington D.C.
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Virginia
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North Carolina
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Florida
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Georgia
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Tennessee
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Oregon
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Colorado
And, they’re hoping to expand nationwide by the end of 2017.
How Morty Works
Morty boasts of its wide array (up to 1,000 different options) of loan products, a team of lenders, some of the best market rates available and a unique experience of online mortgaging. It enables you to create a financial profile, compare and choose the best option available and close your mortgage.
These 4 steps usually take only a couple of hours, tops – from documentation to qualification. As for the time it takes to acquire the home, it would depend on the buyer, seller and the agents.
Here’s a glimpse of how Morty works:
1. Build Your Financial Profile
When building your financial profile, you automatically link your income, assets, employment, personal info and property information. You can also get quotes from lenders and look at loan options available for you.
You can start building your financial profile here. You will be greeted with options to either purchase a home, refinance a mortgage, or to plan ahead or get pre-approved. Then, you’ll answer a bunch of questions.
2. Learn About Your Loan Options and Get Matched
When you sign up, Morty provides you with educational tools and connects you with their in-house mortgage experts so you can learn about different loan options.
Through Morty’s high-tech algorithm, they are able to connect you with an eligible lender and give you pricing guidelines to show you customized quotes, complete with lender fees and closing costs.
3. Compare Offers and Choose
One of the struggles in choosing a mortgage is not being able to shop and compare mortgage rates. But Morty solves this problem by providing you with a vast lender network and transparent pricing.
You’re able to shop and compare different products and lenders. This ensures that you really get what you want – to grab the best price available in the market.
4. Close your Mortgage
The minute you choose a loan, Morty works with the lender, the real estate agents and other important people to finalize your mortgage and close on your new property.
Morty is all about reinventing the way you get a mortgage.
We’re not sure if Morty will have lenders for rental properties, but they are paving the way for future lenders to make it easy for investors.
More to Add?
Tell us about your experiences with Morty in the comments section below.
Improve your credit – Bank loans are some of the cheapest sources of funding out there. The better your credit, the cheaper they become.
Shop around for financing – Just because they are the cheapest, doesn’t mean bank financing is the best. You may want investor money because they are more flexible, and can close quicker.
Review all your documents carefully. In applying for any mortgage, whether online or offline, always review documents before submitting them. It keeps you from making unwanted mistakes and last-minute changes that can disrupt the application process.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.