Just a few weeks after Better.com announced its One Day Mortgage product, Guaranteed Rate is trying to speed things up further with Same Day Mortgage.
Same Day Mortgage promises a loan approval in less than 24 hours, which Guaranteed Rate calls an “industry first.”
“Guaranteed Rate is known for revolutionizing the mortgage industry and making the home buying process easier – innovations like the first-ever digital mortgage that we launched in 2015,” said Guaranteed Rate President and Chief Executive Officer, Victor Ciardelli.
“Today we’re changing the game again with Same Day Mortgage. Customers expect services to be fast and easy, Same Day Mortgage delivers exactly that with cutting-edge technology and a totally efficient process.”
The program was tested with a select group of customers in 2022, resulting in 3,300 one-day approvals totaling $1.1 billion in closed loan volume. Now, the lender says 72% of conforming business customers could qualify.
Guaranteed Rate notes that both buyers and real estate agents can benefit from the speed of a same-day turnaround. Successful closings could come in as little as 10 days if a buyer is approved on the day of application.
“When buyers use Same Day Mortgage, along with PowerBid Approval, Guaranteed Rate’s fully underwritten pre-approval letter, their offers compete aggressively with all-cash buyers,” a press release reads.
Potential homebuyers can save $250 by submitting the required documentation within eight hours through the company’s digital platform, where they can also sign the initial application package.
Certain documents must be submitted within eight hours for a same-day application to be approved.
There are limitations to the program. Documents provided after 1 pm local time or on a weekend or company holiday will be deemed submitted the next business day, and the company cannot guarantee approval that day. Self-employed borrowers and co-borrowers are not eligible.
The company also reserves the right to revoke approval at any time if there is a change in financial conditions or credit history that would impair a borrower’s ability to repay the obligation.
Same Day Mortgage doesn’t differ substantially from Better.com’s One Day Mortgage. Better requires documentation in four hours rather than Guaranteed Rate’s eight, and the company promises a Commitment Letter within twenty-four hours but averaging twelve.
Better will only give same-day approval to salaried employees, and customers who submit documents within four hours will receive a discount that can be put toward closing costs.