Real estate technology company Lofty has introduced an artificial intelligence platform designed to nurture prospective homebuyers before they apply for financing, potentially giving mortgage professionals access to consumers who have already begun addressing credit, savings, and affordability hurdles.
The consumer-facing platform creates personalized plans intended to help users understand their buying power and become financially prepared for homeownership.
Once the platform determines that a consumer has become “offer-ready,” House.ai can connect the prospective buyer with a local real estate agent or mortgage professional through Lofty’s network.
For loan originators, the potential value is not simply another source of leads. House.ai is positioned as a way to identify and nurture consumers who may be interested in buying a home but are not yet prepared to begin the mortgage process.
“Instead of chasing unqualified leads, professionals in the Lofty network meet clients who already know their number, their gap, and their plan,” House.ai CEO and founder Joe Chen said in a statement.
A consumer identified as ready by House.ai would still need to be evaluated by a mortgage professional and satisfy the lender’s underwriting requirements.
Targeting The Buyers Who Never Apply
Lofty is attempting to reach prospective buyers who may have the financial ability to purchase a home but do not understand their available options or how much money they would need to complete a transaction.
The company cited a Wells Fargo survey that found nearly 70% of prospective first-time buyers believed they understood the homebuying process, while approximately 75% could not correctly answer at least half the questions on a basic homebuying quiz. The survey also found that 90% misunderstood closing costs.
Lofty argues that this knowledge gap contributes to a stalled pipeline of consumers who might qualify for financing but never contact an agent or loan originator.
House.ai is designed to combine information that is often spread across budgeting, credit, savings, and real estate tools into a single plan. Depending on the consumer’s situation, the platform can provide guidance related to buying, selling, renting, or retaining an existing property while purchasing another home.
That could allow House.ai to serve consumers across several stages of homeownership, including first-time buyers, move-up buyers, and current owners considering whether to convert a residence into a rental property.
Who Controls The Early Buyer Relationship?
The platform’s introduction reflects a broader push by real estate and mortgage technology companies to reach prospective buyers earlier, before they are ready to submit a mortgage application.
For LOs, that creates both an opportunity and a strategic concern. Automated nurturing may reduce the time spent pursuing consumers who are not ready to transact. But when a technology platform controls the consumer’s financial preparation and determines when that consumer is ready for a professional, it may also control the initial referral.
Lofty said House.ai would connect consumers with “trusted local agents and mortgage professionals” within its network, but the announcement did not detail eligibility requirements for participating LOs or lenders.
*This article was drafted with AI assistance and reviewed and edited by a human editor before publication.
