The new tool will tell users if they can qualify for a mortgage as well as how much they would be able to borrow.
Morty, a startup that launched an automated mortgage marketplace two years ago, debuted a new platform Wednesday that is meant to further streamline the borrowing process for first-time homebuyers.
The platform should help buyers “successfully bid for a home, secure a loan, and close the deal,” according to a company statement. More specifically, the platform includes technology that enables online closings, which Morty believes can cut the process down to as little as two weeks. It can also tell a prospective buyer how much they can afford to spend on a home, or if they can qualify for a mortgage in the first place.
Morty executives believe this should consequently make buyers’ offers much more competitive.
“With real-time verification of a consumer’s financial information, a mortgage contingent offer powered by Morty can rival the speed and certainty of an all- cash offer,” Adam Rothblatt, the company’s co-founder and chief technology officer, said in a statement. “Everything is completely transparent to the buyer, the seller and their real estate agents.”
The platform uses a step-by-step online interface that presents users with a series of questions about their finances and options.
In its statement, Morty framed the new platform as a response to demographic trends that have made first-time homebuyers the “largest segment of buyers across the U.S.”
“This growing population of homebuyers also faces unique challenges associated with the opacity of mortgage financing and a propensity to be digitally native when it comes to researching, shopping, and transacting on both homes and mortgages,” the statement added.
Morty also announced Wednesday that over the past two years it has “grown its geographic footprint by nearly 200 percent with an expansion into 34 states and D.C.” The company has also raised more than $11 million in funding since its inception.
New York City-based Morty first went live in May 2017 with $3 million in funding. At the time, the company’s website let borrowers compare options from 10 different lenders, which was supposed to help people find the best mortgage as well as save them money on things like fees.
At the time of its launch, Morty was available in 10 markets.
The company’s more recent technological and geographic expansions have been enabled by an infusion of $8.5 million in funding led by Prudence Holdings.
In a statement Wednesday, Prudence Holdings general partner Gavin Myers said that thus far “the mortgage industry has yet to evolve to benefit homebuyers.” Morty, however, should help change that.
“Morty’s platform lets homebuyers know upfront what they’re eligible for with actual pricing and terms, then close their mortgage all in one place,” Myers said. “As larger purchases move online, home purchasers need a platform like Morty in the same way that air travelers need a platform like Kayak.”