Question 1

How is iHarmoni different from a mortgage broker or direct lender?

Accepted Answer

iHarmoni is a market neutral digital marketplace where lenders compete for your loan in an open transparent reverse auction loan process.  We are independent from any lender brand. This means that we are not associated with any one particular lending institution. We are well-positioned to work in tandem with a larger network of lenders from all across the USA and provide you with pure results without any bias.
During an auction, iHarmoni’s intelligent AI technology algorithms will identify and invite lenders to your loan auction based on a matrix of 25 criteria. This ensures that the most ideal lenders that are most likely to match well with your qualifications and desires are engaged within your loan auction.
iHarmoni takes innovation even further by being more than a matchmaking service. iHarmoni is changing the lending game by providing an arena - like a digital sports stadium - where lenders openly compete against each other for your loan. For the first time, lenders can actually see the loan offers provided by other lenders and decide on what terms they want to compete. In commercial real estate, items such as recourse, term, amortization, loan to value, and prepayment penalty can be just as important as the finance interest rate. There are several criteria involved in making a loan decision as well as market moves, cost variances, and policy changes. iHarmoni synchronizes this process and makes it a seamless playing field where lenders compete with full visibility. Having rules that everyone must abide by - including a start and end time - helps everyone focus on the loan at hand and dedicate the resources needed to win. Using technology to maximize competition and transparency to ensure fairness and ease of understanding ensure you always get the best terms for your loan.  
There are many other differentiating factors including having your own secure online loan portal to manage all of your loans. At our core, iHarmoni’s vision and goal is to be your DIY lending platform that comes with a team of dedicated Personal Loan Auction Advisors available, as needed, to guide and assist you through the process. It’s the best of both worlds - sophisticated technology seamlessly integrated with professional “human” mortgage expertise.

Question 2

What does it cost to create a loan auction on iHarmoni?

Accepted Answer

Zero. iHarmoni is an innovative online platform that will create your loan auction, actively promote your loan request to lenders across the Country, and provide guidance and advice about the auction process at no cost to the investor.  The only time iHarmoni receives payment is when a loan is funded. At the loan closing, the investor pays a 1% success fee to iHarmoni as part of the standard and ordinary loan settlement fees coordinated by an unaffiliated third party, typically the local title agent or Real Estate Attorney handling the loan settlement. Your success is our success. We make nothing until you get funded.

Question 3

I wasn’t able to finish my loan application. What do I do now?

Accepted Answer

You can use the "save" feature on the bottom righthand corner of the application page to save your progress. You'll receive an email with a link that will allow you to return to the form and complete it when you are ready.  Keep the email because you use the link as often as you need.
 
Alternatively, you can contact iHarmoni by phone at (888) 312-2257 and email at auction@iharmonicre.com and we can help you complete the application.

Question 4

I realize that iHarmoni does not receive any fees upfront, but do Investors need to pay for a credit report and independent background check?"

Accepted Answer

Yes. As part of the borrower evaluation process, iHarmoni will require investors to provide a recent credit report (within 30 days of auction launch) and background check. iHarmoni will help arrange for the ordering and processing of the reports and investors will pay the 3rd party reporting companies directly. The reports remain valid for 90 days and the same reports can be reused for additional loan requests.

Question 5

Is the borrower required to pay for appraisal, origination points, closing costs, and on the loan funded?"

Accepted Answer

Yes, you will pay these fees directly to the lender and not until AFTER the loan auction is concluded and you have selected a winning lender. The lender will require you to pay for these reports as part of the normal and ordinary costs of securing a loan and they are charged by the lender directly. iHarmoni has no involvement in the fees charged by lenders. We actively encourage lenders to find ways to reduce their fees wherever possible.

Question 6

What criteria is iHarmoni looking for when creating a loan auction?

Accepted Answer

iHarmoni is interested in completeness and quality. You can probably tell by the design of our platform, that we are detailed oriented and take our business seriously. We hope you desire the same. We look for investors that have or are building a strong reputation for their honesty and integrity within their business community. We focus on ensuring the investor is properly prepared and presented to maximize their potential for affordable funding.

Question 7

Does iHarmoni offer loan auctions across all of the United States of America?

Accepted Answer

iHarmoni is active in all 50 states.

Question 8

What types of loans are available through iHarmoni?

Accepted Answer

You can create an iHarmoni loan auction for Fix to Flip, Fix to Rent, single-family and multi-family rentals, and portfolios of properties.

Question 9

What is the minimum loan size availble on iHarmoni?

Accepted Answer

The minimum loan size is $100,000. While there is no maximum, iHarmoni loans typically range $100,000 to $10 million.

Question 10

What type of information is required before a loan auction can begin?

Accepted Answer

One of the reasons lenders prefer iHarmoni is that they know all of the information and documentation they need to evaluate an investor and their property transaction is available at the beginning of every auction. This lets the lender know that the investor is capable while enabling the lender to move quickly to provide excellent offers. Your iHarmoni loan advisor will assist you in completing and organizing the documents, but it is the responsibility of the investor to provide complete and accurate information.

Question 11

What items does iHarmoni need before a loan auction can begin

Accepted Answer

1. Driver’s License
2.   Credit Report ( Scoring is the primary focus with a minimum of score of 640 being required)
3.   2 consecutive months account statements demonstrating you can afford down payment, closing costs, and reserves
4.   Business Entity Docs (Certificate of formation, EIN, Articles of Incorporation, Operating Agreement)
5.   Real Estate Owned (REO) Record/Data tape
6.   Evidence of General Liability Insurance
7.   Builder’s Risk Policy
8.   If purchase:
       -   Purchase Contract
       -   Construction Budget Estimate & Draw Schedule
       -   Comparable Sales (CMA, BPO, MLS listings)
9.   If refinance:
           Mortgage Statement
10. Preferred Real Estate Attorney or Title Company

Question 12

How long will the loan process be?

Accepted Answer

The loan auction and lender selection process usually completes within 3-5 days. The most time consuming period is often the information and document gathering which is dependent on you. There are three time periods: 
 
1. Loan Profile Creation: 1 day once we have all documents and information requested
2. Auction: 3-5 days depending on deal complexity
3. Lender diligence and closing: 1 - 3 weeks dependent upon third parties such as appraisal and title 
Funding usually completes within 14-45 days from application submission to loan settlement. The timing varies based upon loan type selected and complexities associated with the project type and location. 
 
For urgent loan requests, the entire process can be expedited and usually results in higher loan interest rate and lender costs.

Question 13

I submitted my loan application. What happens next?

Accepted Answer

After we review all the items, we will call you to discuss details and answer any questions. If everything looks good, we will countersign the engagement agreement and provide you a signed copy of this document. The loan auction period and secure client portal will be created. We then notify you with a website address and password so that you can access your loan portal, review your loan profile, and select “Launch Auction” when you are ready to begin the auction. All of this usually takes about 24-48 hours to establish. Much of this process is dependent upon the Investor providing accurate information and a complete set of documents.

Question 14

What happens during the auction?

Accepted Answer

We will invite lenders to review your loan profile and begin submitting “bids”. A “bid” is a set of lender loan terms that are typically contained in a term sheet. Lenders can view the bids that other lenders have submitted and update their own bids to be more competitive and try to ‘win’ the auction.. This process continues automatically with lenders competing against each other until the end of the auction. You can watch the lenders compete in real time on your loan portal. During the auction, you will be able to answer lender questions and requests for additional information within the loan portal. Your iHarmoni loan advisor is also available to help coordinate lender requests.

Question 15

What happens when the auction ends?

Accepted Answer

You will review all of the lender bids and select a winning bid. The  winning Lender will provide a written term sheet for your review and signature. If the lender requires any additional diligence items such as an appraisal or other 3rd party reports, then they will be ordered at this time. Once diligence is complete, the lender will provide loan documents for your review and a loan closing date will be scheduled. Your PLA (iHarmoni Personal Loan Auction Advisor) will help coordinate this period from when the auction ends until the loan is settled and funded.

Question 16

I didn’t like any of the lender bids. Am I still obligated to select a lender?

Accepted Answer

No. There are no obligations to select a winning lender. You are in control at all times and you make the decisions.  If you do not prefer to take advantage of the lender offer, then you can either rerun your auction with a new set of parameters or try out our service again in the future as we store your documents in our secure vault for continual use and ease for you, the Investor.

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