Skip to main content

New company drags home mortgage application process out of the stone age

approved loan mortgage documentation system 14556659  real estate document with house keys
pricelessphotos / 123RF Stock Photo
Searching for real estate on major listing directories such as Trulia, Zillow, Redfin, and Realtor.com is fast, easy, and even fun. Residential real estate buyers and sellers also benefit from agents who use current technology to show off listings. Drone photography, 360-degree video, and augmented reality give buyers a much better feel for a property than conventional still shots. On the other hand, applying for mortgages and submitting the required documentation can be a painful process with little help from technology, especially with smaller lenders.

The painful technology gap between residential real estate sales and the mortgage approval process spawned San Diego, California-based startup Approved. Approved co-founders Andy Taylor and Navtej Sahal, both former Redfin employees, set out to the bring the loan approval process to the digital age, according to Geekwire.

“You go from this tech-enabled, mobile-enabled world, to a world where all of a sudden your loan officer is asking for your signature on a physical piece of paper,” Taylor said. “One of our customers described it as landing a rocket ship in the stone age because it was like taking a step back in time.”

Apply for a mortgage today and you’ll need to submit pay stubs, W-2s, 1099 forms, tax returns, and more to prove that you can afford to make the payments and will actually pay them. Back in the mid-2000s you could often just tell lenders how much you made and maybe pay a 1/4 percent higher interest rate for an “undocumented” loan. We saw how well that worked. Strict requirements mean providing documented proof of your ability to pay.

Approved has created a secure document library stored on Amazon Web Services (AWS). The documents are accessible by potential borrowers and lenders, as long as they have the necessary two-factor authentication. The library lets borrowers use smartphones to scan and submit documents. Approved sets up whiteboards where both sides of the loan transaction can communicate, and the service handles all parts of the documentation process.

Security is paramount in the loan approval process, and Approved’s co-founders knew they had to be proactive in their system design. “Everything you build has to have that in mind,” Taylor said. “You really have to put your tinfoil hat on when you’re thinking about how you are going to be structuring these things and architecting them.”

Big name companies such as Rocket Mortgage, Redfin, and Lending Home are also modernizing the loan approval process with proprietary systems for their own business use. Approved doesn’t sell real estate or lend money, it’s purely a service that assists documentation for all sides.

Bruce Brown
Digital Trends Contributing Editor Bruce Brown is a member of the Smart Homes and Commerce teams. Bruce uses smart devices…
How to cancel your Arlo subscription
The Arlo Essential 2nd Gen mounted outside.

Arlo is one of the most popular smart home security brands, offering a variety of cameras and sensors to keep your property safe. But if you're ready to check out other systems (such as Ring or Wyze), you'll want to cancel your Arlo subscription. Unfortunately, this can't be done using the smartphone app – instead, you'll need to head online to the official Arlo website.

Need help with the process? Here's a step-by-step walkthrough on how to cancel your Arlo subscription.

Read more
The best smart lamps of 2023
Philips hue white ambiance lamp installed on coffee table.

Looking for an innovative way to light up your home office, living room, or bedroom? Consider adding a smart lamp to your shopping list. While these products will illuminate a dark space just like a traditional lamp, they're packed with additional features – such as the option to set timers, change colors, or connect to the rest of your smart home.

The best smart lamps come from trusted brands like Philips, Govee, and Amazon, though you'll also find lesser-known companies such as Moonside and Hatch churning out incredible products. If you need help searching for the right one, here's a look at the best smart lamps for all types of rooms.

Read more
The best outdoor security cameras of 2023
The Google Nest Cam (battery) mounted to a wall.

If you're shopping for the best outdoor security cameras of 2023, you'll want to find something that's weatherproof, captures high-quality footage, and works well at night. It's also important to consider your budget and ongoing subscriptions that may be required to access premium features such as cloud saving and person detection.

Regardless of your budget, there's an outdoor security camera that'll fit your needs. From premium products crafted by Ring to budget-friendly options like those from Wyze, there are dozens of well-reviewed models that are perfect for protecting your home.

Read more