Eave, a Colorado-based direct mortgage lender, just launched a new service that claims to make the mortgage application process more automatic.
The new service, which is currently available only in Colorado, works by having Eave’s underwriters back homebuyers’ mortgage applications. The software inputs information one would normally submit when applying for a mortgage and then evaluates a client’s financial situation and purchasing plans. The idea, according to the company, is to make homebuyers who have a mortgage as competitive as those who have the all-cash outright–an extremely lofty goal.
Launched by former Capital One executive Saro Vasudevan, Foursquare manager Anoop Ranganath and Hailo executive Jack McCambridge, Eave focuses on home loans for properties worth between $665,000 to $8 million. It also claims to give clients a decision on the application within two days, based on clients uploading just 10 documents.
Screenshot from Eave’s website.
The company specializes in large loans and charges 3.875% for a 5-1 hybrid adjustable-rate (ARM) mortgage, 4% for a 7-1 ARM and 4.25% for a 30-year fixed mortgage.
The company is backed by Bessemer Venture Partners, Two Sigma Ventures and various banks. The software, according to the company, helps buyers know whether their offer will be attractive and give sellers extra confidence that they will be able to complete the property sale.
Over the last year, numerous real estate startups have been trying to automate the mortgage and loan application process — last month, homebuilder Lennar partnered with Blend, a California-based startup that also automates applications for home loans.
