In an attempt to extend its reach to even more home buyers, the mortgage institution Lower has entered into a new agreement with the estate agency HomeSmart.
This comes just months after Lower bought Movoto, a real estate portal similar to, but much smaller than, the likes of Zillow.
The two power moves could be enough to launch the Ohio-based lender into the top-25 nationally.
As it stands, they are a top-50 lender, but they are clearly taking steps to become much bigger.
And if it all works out, they could be a household name in the mortgage world before you know it.
Lower’s new partnership with HomeSmart gives them access to 25,000 estate agents nationwide
It’s been an interesting year for mortgage and real estate mashups.
We’ve seen some pretty massive ones, not least Rocket’s acquisition of Redfin.
Shortly after that took place, they also snagged mortgage lender Mr. Cooper.
They referred to it as a flywheel where they essentially keep the customer for life from start to service.
It appears Lower took a page from the Rockets playbook as they have also made similar moves of late.
In May, Lower acquired Movoto, which, although lesser known, is apparently the 5th largest real estate portal in the US, with 150 million visits in 2024 alone.
If you go to that site, there is now a small disclaimer at the bottom that reads: “Requests for information regarding mortgage products will be sent to Movoto.com affiliate, Lower, LLC.”
But like Rocket, Lower wasn’t satisfied yet, and today announced another major link-up with the nation’s largest 100% commission real estate agent, HomeSmart.
For the uninitiated, 100% commission brokers give the full commission to their realtors instead of taking a split.
However, the agents still have to pay a monthly fee, a fixed transaction fee and a standard risk reduction fee.
Either way, the most important thing is that Lower will now have direct access to “HomeSmart’s expansive network of agents,” which at last count numbered about 25,000 across 250 offices in 48 states.
So it’s another way for Lower to turn up business if a HomeSmart agent happens to be using their new lender of choice.
Strategic marketing agreement will increase mortgage lending on lower
The new partnership is not a merger or acquisition, but rather a “strategic national marketing agreement.”
What this means is that HomeSmart’s 25,000 real estate agents will have direct access to Lower’s mortgage solutions, which it says will create “a seamless experience for agents, buyers and homeowners nationwide.”
Specifically, Lower and HomeSmart will roll out a joint marketing campaign highlighting their combined platforms.
Aside from co-branded marketing resources, HomeSmart agents will receive specialized training and tools to close mortgages faster.
Ultimately, though, it’s just a way for Lower to tap into another large pool of potential homebuyers before another lender does.
Since mortgage rates jumped back in 2022, mortgage refinancing has dried up and lenders have increasingly worked to make inroads with real estate agents.
As we all know, or you should know, most home buyers go with the mortgage company their realtor recommends.
That’s why all these mortgage lenders and real estate companies are teaming up. They know that it is often a race to the customer, and simply being first wins the race most of the time.
If you are a potential home buyer, pay close attention to your real estate agent’s lender recommendation.
Do a quick search to see if there is an affiliation, and if you have the energy, get some outside quotes to compare with the affiliated lender.
If you don’t take the time to do it, you don’t know what else is out there. And studies prove that those who get more than one mortgage offer save money, potentially a lot of it.
Read on: Should I use the homebuilder’s mortgage credit institution?
