Approved, a San Diego start-up that aims to make mortgage application documents digital, has received $1 million in pre-seed funding led by Bay Area funds Social Capital and Precursor Ventures.
The young company was founded by Redfin alums Andy Taylor and Navtej Sadhal. Redfin is a technology centered real estate brokerage, where Taylor was former director of product development and Sadhal was head of the platform technology and the mobile group.
Approved will use the money to launch its Digital Mortgage Platform nationwide, which Taylor said simplifies the home loan process for lenders and borrowers.
Approved’s platform lets borrowers securely import bank statements, pay stubs, W2s, tax returns and other documents to lenders using their online banking credentials. The company creates a loan application using that data, which is designed to integrate with underwriting software that lenders are already using.
“We started Approved to make it less tedious for borrowers to buy a home but were shocked at how much time and money that lenders themselves waste on paper-based workflows,” said Taylor in a statement.
The technology includes the ability to “scan” documents via mobile devices. In a six-month pilot, lenders saw a 50 percent decrease in the time it took to get application documents, according to the company.
Several rivals are already using mobile/digital technology in the mortgage application process, including Rocket Mortgage, Quicken Loans, Lending Home and others.
But Approved thinks it can find its niche with existing home loan originators who want to bring modern technology to their operations.
“National players spend millions on new technology but keep those solutions proprietary,” said Taylor. “Approved unlocks the modern home loan experience for all lenders so they can focus on what they do best.”
The company is based in downtown San Diego in the EvoNexus incubator. Bluesky Equities, Graph Ventures and angel investors also participated in the funding round.