In a Nutshell
- Quick, easy and transparent application
- Everything done online
- No application fees
- Must register to see rates and terms
- No face-to-face contact with lender
- Only available in 12 states
Reali Loans At A Glance
Mortgages and refinancing
Fixed-rate mortgages, no origination charges
10-, 15-, 20-, 25-, or 30-year fixed rates
Entire process is online, with rates shown in seconds
Only available in 12 states (but growing)
Borrowers looking to do everything online and save time on paperwork
Reali Loans is a 100% online lender offering borrowers the chance to secure competitive fixed-rate mortgages and refinancing from the comfort of their own home. Reali Loans currently offers loans to residents of 12 states (and growing): Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia and Washington. Visitors to the Reali Loans site can obtain a personalized quote in literally a few seconds by filling out their estimated purchase price, down payment and credit score. Closure usually takes place within 30 days, with the advantage of being able to complete the entire process online.
Because Reali Loans 's service is all online, it is best suited to people who are used to running their lives from their desktop, tablet, or smartphone. If you’re the sort of person who already does most of their shopping online and doesn’t need face-to-face contact with customer support before making a decision, then you’ll find Reali Loans very easy to use. And just like other online services, Reali Loans’s streamlined business model enables it to eliminate unnecessary fees and deliver competitive prices.
Reali Loans was founded in 2013, and currently offers two products: fixed-term mortgages and refinancing. Its platform is easy to use. Not only does the entire application take place online, but you can also check on your status any time during the process, just by logging in and going to your personal dashboard.
The Application Process
The initial application process shouldn’t take more than an hour or two (plus however long it takes to make yourself a coffee and open the Reali Loans website in your browser). It involves the following steps:
On the Reali Loans home page, choose whether you’d like to apply for a new mortgage or refinance an existing one.
If you’ve chosen to apply for a new mortgage, you’ll be asked to fill in the following details: estimated purchase price, down payment amount, credit score, and the zip code where you are planning to buy.
Within seconds, you’ll be presented with a custom quote. You’ll be given the option of 5 loan terms (from 10- to 30- years) and 4 interest rates and monthly payments. Below that, you will see your loan terms, including a detailed presentation of your estimated closing costs.
If you select the rate offered to you, you’ll be asked to fill in a few details about yourself, including contact information, marital status, and whether you’re a first-time home buyer. The more information you can provide at this stage of your application, the more accurate the loan estimate.
Next comes Reali Loans’s streamlined application, which takes an estimated 6 minutes. The application only includes questions that are relevant to the approval process, and includes a free credit check.
Finally, the loan estimate and disclosure documents are generated, and you will be asked to review them and to sign them electronically. At this point, you’ll see a list of documents you’ll need to upload in order to complete your application, typically including bank statement, pay stubs, and income tax forms.
A Reali Loans agent will get back to you within about 1 business day of having completed your application.
Pros and Cons
The benefits to using Reali Loans are obvious. This is a 100% online lender that promises to cut out all unnecessary paperwork. In fact, when you apply, it’ll actually show you how much time and effort you’ve saved in comparison to going through a traditional lender. Its simulated application saves 10 days, 114 pieces of paper, and 1.1 headaches!
Thanks to its streamlined service, Reali Loans passes on some of the savings to the borrower by promising not to charge any application or underwriting fees (known collectively as origination fees). As anybody who is used to shopping online or through a smartphone will be aware, there are hidden savings too: think of all the time, effort and cost (on things like gas and parking) that you would spend going to a bank to apply in person.
There are some downsides to online services such as Reali Loans’s. You won’t see any rates and terms without registering. And if you’re the type of person who prefers face-to-face contact, this service might not be for you. One other con is that Reali Loans is only available in 12 states; though Colorado and Texas were the last to join in mid-2017 and Virginia was just added, so it shouldn’t be too long before more are added.
Loan Terms- The Bare Basics
Reali Loans offers only standard fixed-rate home loans and refinancing on residential properties. It is also planning to offer adjustable rate mortgages (ARMs) in the future.
Like all lenders, Reali Loans calculates its rates based on the 10-Year Treasury market rate, plus a spread. It changes its rates daily based on a variety of factors, including market conditions and expected adjustments to the federal funds rate.
Once you agree to a rate it usually locks in for 45 days, although you may cancel the process at any time.
Closing costs can include government taxes and fees, and third-party services, such as: pest inspection fee; escrow; e-recording service fee, title policy, survey and appraisal fees, and flood certification in regions where this is a requirement.
Reali Loans offers credit for higher interest rates, reducing your eventual closing fee.
Reali Loans offers fixed-rate mortgages and refinancing for durations of 10, 15, 20, 25, and 30 years. Unlike some traditional lenders who advertise their rates on their homepage, you’ll need to register (by entering your email address and a password) to find out the terms Reali Loans can offer you. These terms will depend completely on your own circumstances.
We submitted a simulated application using a 91101 zip code for Pasadena, California, a $780,000 house price (the median house price in Pasadena), a $480,000 down payment, and a 700-719 credit score. For a 30-year fixed term, Reali Loans offered a 4% interest rate (at 4.148% APR) for $1,432 monthly payments, up to a 4.375% interest rate (at 4.399% APR) for $1,498 monthly payments. By choosing the higher rate, Reali Loans offered to lower the estimated closing costs from $6,372 to just $433.
For a 15-year fixed mortgage using the same parameters, Reali Loans lowered the rate to 3.625% (with 3.759% APR) up to 4% (with 4.00% APR and enough lender credit for negative closing costs of $849).
Help & Support
Customer service representatives can be reached Monday to Friday, 6am to 6pm Pacific Time (or 9am to 9pm Eastern Time) at 855-846-7334, firstname.lastname@example.org, or via the live chat button on the Reali Loans website. Quotes can be obtained 24 hours a day, 7 days per week, on the Reali Loans website.
Reali Loans is a digital mortgage loan provider that offers standard mortgage and refinancing options through its online platform. The application process is as quick as they come, and takes place through a highly functional and well-designed website. Because rates are shown in real time, you can keep coming back each day until you find the deal you want. Once you find a good deal, closure is quick and you can access your account at any time to get an update on the status of your loan application.
44 Tehama Street
San Francisco, CA 94105