Reali Loans, Inc. (formerly Lenda) is an online mortgage lender sending ripples through the traditional mortgage banking industry. The entire home loan process is online, with interactive tools available to help borrowers make the best decision possible.
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Reali is a team of real estate experts and technologists who have created a streamlined, commission-free home buying and selling process. As a fintech company based in San Francisco, its state-of-the-art technology enables its real estate agents to deliver better real estate services at a lower cost.
Reali’s goal is to make homebuying easier and more efficient. They also work with home sellers to help them get a better return on their real estate investment.
While Reali loans are currently limited to just a handful of states, residents in those areas can benefit from a seamless mortgage.
Keep reading to find out where you can get a mortgage, what loan types are available, and how the mortgage application process works for borrowers.
Reali Loans Mortgage Application Requirements
Currently, only residents in the following states qualify to even apply for a Reali mortgage:
- Arizona
- California
- Colorado
- Florida
- Georgia
- Illinois
- Michigan
- Oregon
- Pennsylvania
- Texas
- Virginia
- Washington
However, the company continues to expand, so keep checking back to see if Reali adds your state when you’re ready to apply for a mortgage.
What kind of credit score does Reali Loans require?
Borrowers must have a minimum credit score of 620. This is the typical credit score for conventional loans that conform to Fannie Mae and Freddie Mac mortgage standards.
Reali Loans also works with some less common types of borrowers. For example, they can accommodate self-employed individuals with at least two years of tax returns. Additionally, Reali can refinance borrowers who own as many as six properties.
You can complete the application online or over the phone. For purchasing a home, you’ll need to provide the estimated purchase price, your down payment, and your credit score range.
For refinancing, you’ll need to provide personal details such as the refinance purpose, current mortgage balance, estimated home value, zip code, and estimated credit score. After submitting your application, a Reali loan officer will contact you within one business day.
Types of Home Loans Available from Reali Loans
Reali Loans is a direct lender that offers fixed-rate home loans in various terms. For example, you can get a mortgage lasting 10, 15, 20, or 30 years. Because these are all conforming loans, you may be able to qualify for a lower interest rate than you would with a government-backed loan such as an FHA loan.
Refinance loans are also available through Reali, which could help you cash out home equity, lower your rate, change your loan term, or drop your PMI on your existing mortgage.
Choosing Your Loan Term
With so many loan term options available from Reali Loans, it’s worth considering how to pick which one is best for your mortgage. Typically, the shorter your loan term, the lower the mortgage interest rate you’ll receive. In fact, you could save close to a whole percentage point.
But there is a downside of picking a shorter loan term. Even though you’ll pay less in interest over time, your monthly payments will be significantly higher since you’re spreading them out over a much shorter time period.
Comparing Terms
Part of Reali’s mortgage application process entails seeing what changes when you alter different loan terms. That way, you can see what the different numbers look like for a 10-year, 15-year, 20-year, or 30-year mortgage with Reali Loans.
Also, consider how long you plan on living in your home before selling. Of course, things can change, but how long you stay there may influence your decision.
If you plan on moving within a few years, you may not worry about how much interest you’re paying because you won’t be getting that far into your payments anyway. But if you plan on being there for a while, or perhaps if you’re nearing retirement age with a looming income decrease, you may try to pay it off more aggressively so you can save on interest over time.
Limitations of Mortgage Types
One area where Reali Loans falls short is that it only offers fixed-rate conventional loans. Unfortunately, that means there are no government-backed loans such as FHA loans, VA loans, or USDA loans available at this time.
The same holds true for adjustable-rate mortgages, home equity loans, or home equity lines of credit (HELOCs) — Reali Loans simply doesn’t have them at the moment.
Fees and Rates
Reali Loans doesn’t charge lender fees or origination fees to keep closing costs low for borrowers. However, one thing you will have to pay for upfront once your application is underway is the appraisal fee. The appraisal is a necessary part of any home loan process because it ensures the home you’re buying is valued for at least as much as the purchase price. If not, you can’t get a loan.
While many lenders roll the appraisal into your closing costs, they require you to pay for the appraisal as it happens. Since you’re paying a fee to a third party, it’s non-refundable whether you end up closing on the mortgage loan or not. However, Reali Loans states that it only moves loans through that are likely to meet all underwriting standards successfully.
Reali’s Mortgage Process
Reali Loans’s mortgage process is quick, easy, and entirely digital. You’ll hear back within one business day with your loan decision. However, you may hear back in as quickly as one hour.
How do you begin a mortgage application process?
Compare Mortgage Rates
To start off, you can fill out a short form to access a rate quote. From there, you can compare different mortgage rates and see how things change when you adjust variables like rate, term, and closing cost financing.
Since there are only conventional loans available, it’s fairly easy to compare apples to apples. You don’t have to figure minute detail changes across multiple loan types. Instead, you can see how specific things change the cost of your mortgage loan.
Once you review your options, you can decide whether to continue with your online application. If you do, you’ll continue filling out information through Reali’s online portal.
Credit Check
At this point, you’ll also get a credit check performed for free. Your loan estimate and disclosures are then created and you can electronically sign everything for a completely digital process. You can also upload all of your supporting documents.
Reali Loans allows you to track your loan progress online at any point; in fact, the entire process is completely digital, from start to finish.
Minimum Down Payment
Reali Loans requires a minimum down payment of 10% for loans of $453,100 or more. For loan amounts less than that, the minimum down payment is 5%.
Closing
After your application is underway, closing usually takes 30 days or less; however, you can contact Reali Loans if you need a faster closing and it may be possible.
Following closing, Reali doesn’t service any home loans. But they do fully vet their servicers and give you all the right contact information when you loan funds. This isn’t unusual and doesn’t affect any of your loan terms, just where you send your monthly payment.
Reali Special Features
There are a few features that make Reali stand apart from other online mortgage lenders. First, they offer a $500 refer-a-friend lender credit. This is an easy way to save some cash during the mortgage process.
On top of that, they offer a great resource called the Suggestion Engine. This online tool gives you real-time advice on how to get a better rate on your mortgage or refinance.
Reali Loans Reviews
One of the best ways to research mortgage lenders is by reading third-party reviews. You can discover what actual customers are saying about them before you choose to do business with them.
Reali Loans currently has a Better Business Bureau (BBB) rating of A+, indicating excellent customer service. They also have very few complaints. You can find more Reali reviews at other review sites as well.
Bottom Line
With an excellent customer service team, Reali is an ideal choice for tech-savvy borrowers who prefer to handle things solely online. As long as you live in a participating state and prefer a conventional loan, you can save time — and perhaps even money — by using this leading mortgage lender.