=== Background ===
An iLender is a technology-enabled lender that empowers buyers who qualify for a mortgage to submit all-cash offers on a home. It is a quickly growing category in real estate financing. iLenders try to appeal to buyers by making offers on homes more competitive, particularly in multi-offer situations, and try to provide buyers and their agents with more negotiation power. iLenders attempt to appeal to home sellers because the cash offers they enable are free of financing and appraisal contingencies and, on average, close faster than a financed offer.
=== How the iLender Process Works ===
In the standard iLender model, buyers are underwritten upfront for a loan and fully approved before they submit any offers. This stands in contrast to the traditional mortgage offer, where the buyer isn’t underwritten until after the home is under contract.
Once the buyer is underwritten, they are free to shop and identify a home on which they to make an offer. The buyer’s agent submits the cash offer and controls the negotiation using the iLender’s proof-of-funds, resulting in the iLender purchasing the home in cash on the buyer’s behalf.
The iLender then sells the property back to the buyer under a mortgage when the buyer’s mortgage is ready to close. In this model, buyers are securing a loan through the iLender that is purchasing the property all-cash.
The result for the buyer is the ability to make a cash offer, while still receiving a traditional mortgage at the end of the process. === History of iLender ===
The business category of iLender was established in 2016 by Accept.inc in Denver, CO.
'References'
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1. Werley, Jensen, (June 24, 2021) Denver iLender raises $90M as it scales all-cash mortgage business. The Denver Business Journal.
2. Kamin, Debra (November 19, 2021) Is iBuying here to stay? The New York Times
2. Lazerson, Jeff (November 18, 2021 iLender offers Calif. home sellers up to 3 million guaranteed if buyer falters The Orange County Register