If you’ve ever purchased a home or refinanced a home, you probably know what a time consuming process it can be to find and secure mortgage financing.
There seems to be an endless amount of phone calls, paperwork and terms that you may or may not understand, along with a long list of fees – I remember this first hand when we bought our home just a few years ago.
What a frustrating process that was.
If you think the mortgage process should be easier, you might be interested in Lenda, where they work to make getting a home loan “easy, transparent, fast and free of commissions and fees.”
Who is Lenda and How Are They Different?
Launched in 2013, Lenda’s vision is to fix what they see as a broken mortgage system and make applying for and securing a mortgage less labor intensive – and less expensive – for clients.
Lenda is a direct lender with a team whose goal is to make the mortgage loan process more streamlined by educating and empowering borrowers. Their lower rates can save you thousands of dollars over the life of your mortgage loan.
Your entire loan process with Lenda can be done online, and you’ll know exactly what is expected of you and what types of documents you will need to upload and submit to the Lenda team.
Lenda runs a paperless, online system and has a well-staffed customer service center with real people you can call to answer any of your questions.
The company handles both loans to purchase a home and home loan refinancing, including cash out refinances.
What’s New and Exciting at Lenda
Lenda recently teamed up with Notarize, a live video notary service which works to protect people as they sign official legal documents.
Teaming up with Notarize has helped Lenda bring the entire mortgage process online (depending on where you live) – one of the only companies in the country to do so.
As Notarize increases the number of states it works with, loan applicants in non-approved states may have to have some documents notarized in person before they upload them to Lenda.
Because of Lenda’s revolutionary paperless loan processing system and partnership with Notarize, it’s easy to get preapproved for a mortgage loan so that you are prepared in advance and have all of your ducks in a row when you start shopping for your new home.
Here’s an overview of how the streamlined, paperless loan application process works with Lenda.
How Does the Lenda Loan Process Work?
Lenda has created an online system that makes securing a home mortgage much simpler than it can be with a traditional brick-and-mortar lender. Here’s how the process works.
1. Start at the Home Page
On the Lenda home page you will answer some simple questions about the home you wish to purchase or share information about your home refinance needs.
You’ll be asked to answer easy questions such as the purchase price of the home, how much money you plan on putting down and your annual income.
2. The Rate Quote Page
After you answer the initial loan questions, share an email address, create a password (to protect your information) and share a phone number, you will be able to access the rate page.
3. Rate Comparison Page
The rate page is what you will see next, and it will show you a variety of available rates based on the information you provided in step one.
Keep in mind that you won’t have to share your Social Security number and employer’s name to get your interest rate information.
By entering your credit score range, income, and house information Lenda has enough data to let you know what types of interest rates you could qualify for.
4. Lenda Suggestion Page
This is cool: After you enter your information and are shown your rates, the suggestion page will give you tips on steps you can take to lower the mortgage interest rate you would receive with Lenda.
If you provide additional details for Lenda about your personal situation, the loan estimate becomes more and more accurate and thorough.
Lenda can give you very accurate information not only about potential interest rates, but regarding the types of mortgage costs you’ll incur as well.
5. Official Application and Credit Check
If you like what you see up to this point, it’s time to fill out the official Lenda application and give approval for a credit check.
There’s no cost to borrowers for the credit check and no application fee, and the process for filling out an application is streamlined and simple.
6. Disclosure Document Generation
At this point, Lenda generates the disclosure documents required of mortgage lenders, and you can review and sign them all online.
7. Upload Your Documents
As part of the approval process you will receive a list of documents needed for final approval. This list might contain items such as copies of your last two paystubs from your employer and/or copies of your tax returns.
From the comfort of your home or office computer, you can upload the list of documents Lenda needs to have in order to complete your loan approval.
Once you complete this step your loan application is sent off to the underwriting team for final approval.
You can check the status of your application anytime day or night by signing in with your e-mail address and password, or you can call their customer service center for an update.
Who is Lenda For?
Lenda’s main customer base is people who have good-to-excellent credit records and higher incomes. It also helps applicants to be tech-savvy and to have an understanding of basic computer tasks.
What’s Great about Lenda
Lenda can issue a variety of loan mortgage terms: 30-year, 20-year, 15-year and 10-year.
The loan closing process with Lenda is fast: 32 days from application to close on average, and they’ve closed loans in as little as 17 days.
If you’re in a situation where you need to close quickly, Lenda might be the route to helping you get it done.
Also, the application process with Lenda is easy and fast if you know your way around a computer and know how to scan and upload documents, etc.
Lenda also works with real estate investors and can potentially refinance up to six properties for the same borrower.
Where Lenda Could Improve
As of this writing, Lenda is only funding conventional mortgages. However, the company just acquired HUD approval and will soon be able to fund FHA/VA loans as well.
Check their website for updated information on the availability of FHA/VA loans through Lenda.
Lenda currently operates in ten states: California, Washington, Oregon, Colorado, Texas, Arizona, Illinois, Michigan, Pennsylvania, and Georgia. However, they are working to expand their operating base very soon.
Lenda is working to revolutionize the mortgage loan process by making the mortgage application process fast, simple and more affordable. Borrowers in currently authorized states could benefit by checking out Lenda.
Get preapproved for your mortgage loan today by visiting Lenda online at www.lenda.com.