Funding process

Funding process

Once you’ve pre-qualified for a Fraction Mortgage and received your estimate, we will get started on the formal application process.

Here’s everything you need to know about the funding process.

Underwriting

Upon submitting your online application, Fraction’s underwriting team will verify your information and assess whether you and your property pre-qualify for a Fraction Mortgage. Learn more about the application process here.

The introduction call

If you pre-qualify, Fraction will contact you to organize an introduction call. This call will give you, your co-applicants, and your broker (if applicable) a chance to learn more about our funding process and to ask any questions about working with Fraction.

Receiving your pre-qualification letter

Following the introduction call, Fraction will send you a document explaining the product for you to sign. Signing this document signals your intent to move forward with the funding process.

At this time, we will also send a few documents to verify some details from your application, and provide you with a link to pay for your home appraisal.

Booking an appraisal
Along with your pre-qualification letter, you will receive a link to pay for a home appraisal. Once payment is made, an independent, third-party appraiser will reach out to you to schedule a visit.

A home inspection will also be required if the loan amount exceeds $1,000,000. Similar to your appraisal, an inspector will reach out to schedule a visit.

Based on your application and the appraised value of your home, our team will determine how much home equity you qualify to access. 

Providing important documents

Fraction requires a few supporting documents to confirm details from your application. This will include verifying your income, assets, debts, and other aspects relating to your financial situation. 

Reviewing your knowledge about Fraction

Fraction will send you the Fraction knowledge review quiz to go over the details of the mortgage. You will be required to pass this quiz before signing the final documents and receiving your funds.

Hard credit pull
Before arranging closing documents, we do one final credit check. Please note, this is a hard pull and may affect your credit score.

Reviewing your final documents
This is the home stretch! Based on the appraisal and the supplementary documents provided, we will provide you with documentation outlining your funding amount and corresponding terms and conditions. You will have these documents notarized and submitted to finalize your funding. 

Receiving your funds

After final documents are signed and approved, your funds will go to your escrow account within the next 4-7 business days at which time they can wire the funds to your account or give you a check to deposit at your personal bank.

Once you receive your funds, the sky’s the limit. You can invest in a home upgrade or repairs, start a new business or pay down existing mortgages or debts. You will have access to your funds at any point during your draw period (the first 18 months of your term length).

When the draw period ends, you can begin paying down your balance or choose to wait until the end of your term. 

Where can I access my funds?

Delays are rare but they happen. If you’ve been notified of successful funding but you or your escrow account do not receive your funds within 4-7 business days, we encourage you to contact us.

Other modules

Ready to tap into your home equity?

Applying for a Fraction Mortgage is free and fast. We’re talking 5 minutes, with no impact on your credit score.