Tomo, the fintech startup that’s transforming the home buying experience, on Wednesday announced the launch of its “Appraisal Coverage” offering, a new service innovation designed to protect homebuyers from last minute disruptions in the home buying process.
By guaranteeing the same cash to close, monthly payment, and interest rate – regardless of a low appraisal – the new offering gives homebuyers and their agents unprecedented control in a housing market that continues to fluctuate wildly.
Rolling out in September in all of Tomo’s markets, Appraisal Coverage should have an immediate impact on buyer confidence, especially in a market where 48% of homes sold receive three or more offers and the average purchase price continues to climb to record heights. The product was a direct reaction to the bidding wars and over-asking offers that have come to personify the pandemic and post-pandemic era. Even in an environment when rates are increasing, the confidence of having Tomo’s Appraisal Coverage will provide the control and confidence buyers are looking for.”
“With mortgage rates increasing, home buyers have more challenges than ever in this housing market. What we are trying to do with our Appraisal Coverage is eliminate one of those challenges – the worry over low appraisals driving last minute cash demands,” said Tomo CEO and Co-Founder Greg Schwartz in a release.
“Appraisals have the potential to torpedo a home purchase at the last moment; this service will give buyers and their agents an unprecedented level of certainty that we’ll still finance their mortgage even if the appraisal comes as a surprise. It’s a big step in our goal to return control and confidence to homebuyers after this wild ride of the last few years.”
Aimed at disrupting the multi-trillion-dollar mortgage market, Tomo pairs its proprietary technology with local experts to deliver a simpler, faster, less expensive mortgage experience. The result eliminates complexity, reduces cost, and ensures on-time closings, all without the traditional headaches characteristic of the industry today. In 2021, Tomo closed 100% of its loans on time.
Tomo delivers a competitive rate for every homebuyer they serve; charges no lender fees; and ensures an on-time closing. The company has also partnered with the leading real estate agents in every market they serve to provide a complete home-purchase experience with ease, simplicity and confidence.
Tomo’s announcement comes after its launch last summer and the addition of its Lock & Shop product in June, which allows homeshoppers to lock in a mortgage rate for up to 120 days without having a contract in hand. Originally available in Seattle, Dallas, and Houston, and further expanding statewide last fall to encompass all of Washington and Texas, Tomo is now available in nine states, including Colorado, Florida, Georgia, Michigan, North Carolina, Ohio, Texas, Washington and Connecticut. For more information, visit https://hellotomo.com/.
Tomo Networks is a Stamford-based fintech startup that improves the homebuying experience by pairing a smarter, faster, easier mortgage process with the best real estate agents to eliminate complexity, reduce cost, and put buyers in the best position to close. Tomo Networks was created by Greg Schwartz and Carey Armstrong in October 2020, and has since announced $70 million in seed funding – the largest ever for a startup. For more information, visit hellotomo.com.