Fintech startup Homebuyer has raised $1.4 million in seed funding from private investors, according to an announcement. This round brings Homebuyers’ total funding to $1.52 million, which includes a $125K pre-seed round led by Colorado-based tech accelerator Techstars in 2019.
Founded by former mortgage loan officer and software engineer Dan Green in 2019, Homebuyer provides first-time buyers with customized homebuying advice based on their financial health, homebuying goals, and mortgage preferences.
After gathering basic personal and financial information, Homebuyer’s artificial intelligence-powered platform guides users through the homebuying process with tailored information on mortgage rates, the dos-and-don’ts of choosing a home, down payments, and homeowners’ insurance.
Once they’re ready to officially begin the homebuying process, users can secure a loan through Homebuyers’ mortgage partner, Novus Home Mortgage.
“There are 2.5 million first-time home buyers every year in the United States,” Green said in a statement. “Homebuyer is how they learn about mortgages, get low direct-to-consumer mortgage rates, and affordably achieve their American Dream of homeownership.”
Homebuyer is the newest player in a rapidly-growing field of fintech startups aimed at making the mortgage process more streamlined, accessible, and easier to understand for homebuyers. Companies such as Better.com, Blend, and Approved have secured nine-figure funding rounds as consumers call for a digitized homebuying and lending process.
CoreLogic executive Kevin Mullins told HousingWire historically low-interest rates and the coronavirus pandemic have pushed the real estate and mortgage industry to innovate quicker than ever before, and the demand for quick, digital transactions won’t go away after social distancing is lifted.
“The next logical steps in the digital mortgage revolution are already well underway. Partners to the mortgage ecosystem are undergoing their own digital transformation,” he said. “Technology companies that are parallel to the fintechs in the mortgage industry (coined proptech and insuretech) are creating their own wave of consumer experience evolution.”
“It may have taken a global pandemic in 2020 to finally push the mortgage industry to the tipping point, but the result will be a transformed lending process that will revolutionize the borrower experience, lower risk for lenders and make the loan process more efficient and predictable,” he added.