In my last article, I covered the basics of the Homelend platform and what it plans to accomplish by introducing blockchain technology to the real estate market. Be sure to check it out before reading this article, because we'll be taking a deeper dive into the details of how the whole project will flow once it's been established.
Just like you must have guessed, the flow of financial resources from a lender to a borrower in the Homelend platform is purely carried out by smart contracts. No control, decision-making or financial intermediation by Homelend whatsoever.
Once a buyer has received pre-approval from the system in regards to a specific property, the agreed mortgage loan is recorded in Homelend’s platform. At this point, the borrower must have already given a specific down payment, with the mortgage amount determined. Individuals willing to operate as a lender are able to access the platform and look for mediums where they can invest.
Source: Homelend Whitepaper
One notable feature of the platform is that every financial flow is done using cryptocurrency. However, both the amount of loans that have been pre-approved and the prices of the houses listed are all calculated in fiat currency, making market integration simple for end-users.
The platform uses cryptocurrencies for its financial flow because of their friction-less functionality, where there are no commissions while money is being transferred from a lender’s wallet to that of the seller. Also, using cryptocurrencies ensures that smart contracts are in full control, unlike fiat currency flows that are subjected to numerous technological, financial, or legal constraints.
Other Services Offered by Homelend’s Platform
The idea behind the development of Homelend’s platform is to make a blockchain solution with the potential of significantly increasing the possibilities of financing houses for many individuals and families. That’s not all! The platform also creates investment opportunities for anyone willing to take advantage of it by providing a solution that unites an innovative technology like blockchain, with a traditional industry like real estate.
Homelend’s platform also makes it possible for a number of people to access housing financing, solving a major aspiration: owning a home. But surprisingly, that’s not all the platform has to offer.
Here are some other services offered by Homelend’s platform.
Listing of Properties
The aim of Homelend’s P2P lending platform is not just to create opportunities for financing houses for millions of financially incapable individuals, but also to increase the speed and efficiency of the mortgage origination process. This will significantly reduce the amount of time it takes in closing a mortgage. This increased efficiency will be entirely based on smart contracts and the automation they provide.
To further streamline and speed up the mortgage process, Homelend’s platform offers sellers the opportunity to have their properties listed on the platform, which would consequently enable prospective borrowers to directly look for homes within the platform. For a property to be listed on the platform, the seller has to deposit a HMD equivalent of 0.1% of the selling price which would be used as a listing gas.
Closing Mortgages Digitally
Closing of mortgages digitally is no longer just a theory but it’s becoming a reality, though it is predominantly in the U.S. market. Digital closing is an integral element with Homelend’s platform because it hastens the time between the funding of a mortgage loan and the day it is closed.
To make sure this works effectively, Homelend partners with digital closing provider who, through Homelend’s platform, will find a captive and extended market. Just like the traditional system where a commission is charged along with the appraisal fee, Homelend’s platform gets a commission over the fees that the digital closing companies will charge.
For more information on Homelend, be sure to check out their website
Disclaimer: As with all investments, you should do your own research. The information provided in this article is focused primarily on bringing the facts out of the white paper to supplement your due diligence. Please do your own research and make up your own mind.
Links:
Homelend Website
Follow Homelend's Twitter
Join the Homelend Telegram Group
Follow the official Homelend Blog
Read the Homelend Whitepaper
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