Millennials have lived through both the 2008 housing crisis and the Covid housing shortage — two enormous shakeups to the real estate industry. Yet, not much has changed with the home buying process. It is still a stressful process that is very much dictated by lending institutions. For home buyers looking to reduce this stress, fintech startup Tomo is offering solutions and recently come across new funding.
The company, founded by former Zillow executives, announced this week that it closed a $40 million Series A round led by SVB Capital. With the recent fusion of capital, Tomo is now valued at $640 million.
Tomo simplifies the mortgage application and home buying process through its web tools that include pre-approved mortgage rates. The company will also price match mortgages if users are offered better rates with other lenders.
On its website, users can apply for a mortgage and, after being pre-approved, search for homes on the site. After a user’s offer is accepted, Tomo will work on closing the deal as fast as possible.
“We dream about the life we will build in our new home, yet dread the process of getting there. Tomo will give us what we want and deserve: the efficiency of a tech-enabled real estate transaction and the intimacy of having a team of elite professionals on our side,” Tomo CEO Greg Schwartz said in a statement.
Since launching in 2020, Tomo has raised $110 million, including a $40 million seed round in October of 2020.
According to real estate news site The Real Deal, Tomo operates in about a third of all U.S. states. The company is also on track to double its headcount to 300 people and operate in half of the U.S. by year’s end.
Tomo has offices in Seattle, Austin and Stamford, Connecticut, but functions on a remote model. The company has several jobs listings on its website for remote positions in Seattle as well as Austin and Stamford. Positions range from general operations to software engineering.
