Better Mortgage is an online lender. They have nationwide coverage. Better Mortgage offers transparent rates, fast approvals, and personalized assistance.
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Pros
- You get a pre-approval letter in 3 minutes.
- Better Mortgage does not charge any lender fees.
- They are 100% online.
Cons
- Better Mortgage does not have any branch locations.
- Reverse finance and construction loans are not available.
- You can't apply with traditional credit.
Better Mortgage is a direct mortgage lender. They provide a fully digital loan process with no origination fees. Better promises to pre-approve your loan within 3 minutes. Further, you can close the mortgage in as few as 21 days.
According to federal data, Better Mortgage primarily focuses on conventional loans. In 2022, their portfolio included 97% conventional loans, 2% Jumbo loans, and 1% FHA loans. They do not offer hard-to-find mortgages, such as USDA loans, construction loans, etc.
You can also get home equity lines of credit (HELOC) with Better Mortgage. This allows you to access up to 90% of your home’s equity. You don’t have to sell or refinance your home to use the equity.
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✍️ Editor’s Take: Better Mortgage’s 100% online process and lightning-fast services makes mortgage process quick and easy. Moreover, they don’t charge any origination fees and run special programs to offer savings.
Is Better Mortgage Legit?
Yes, Better.com is a legit online mortgage lender based in New York. The company was founded by Vishal Garg in 2014. Better Mortgage has served over 400k customers and provided loans worth $100B.
What makes Better Mortgage unique is their technology. Their user-friendly website lets you obtain a pre-approval letter in just 24 hours. However, make sure you have all the necessary documents ready.
Better Mortgage Locations
Better Mortgage provides their services nationwide. However, they do not have any brick-and-mortar offices and work 100% online.
Loans by Better Mortgage
Better offers four types of fixed-rate mortgages on their website. You can request customized interest rates based on your zip code. You don’t need a hard credit check for that. But remember, people with stronger financial profiles are more likely to qualify for a loan.
| Types of Mortgage | Minimum Down Payment | Debt-To-Income Requirements | Minimum Credit Score |
| Conventional | 3% to 25% | 50% | 620 |
| Jumbo | 10.01% | 43% | 700 |
| FHA | 3.5% | Below 50% | 580 |
Conventional Loan
Better Mortgage primarily offers conventional loans. These loans are not backed by the government. Better offers you this loan with both fixed and adjustable rates. You need to have a credit score of 620 to be eligible for a conventional loan with Better.
Jumbo Loan
With Better.com’s jumbo loan, you can borrow a maximum of $3 million. You can avail of this loan for primary, and secondary homes and investment properties. Better requires you to have a minimum credit score of 700 to avail of this loan.
FHA Loan
Better Mortgage’s FHA loans offer an affordable down payment, reasonable rate options, and a low qualifying credit score. While lenders typically mandate a minimum credit score of 600, Better requires a credit score of 580.
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✍️ Types of Properties Better Finances: The Better Mortgage company finances properties like townhouses, manufactured homes (conventional refinancing only), single-family homes, multi-family homes (up to four units), condominiums, and planned unit development.
Special Programs for Borrowers
Better Mortgage also offers some special programs for home buyers. These programs include:
HELOC
Better Mortgage offers home equity lines of credit. With Better, you can unlock 90% of your home’s equity. This is better than their competitors, who allow 85%.
HELOC can be used for home improvements and education costs. You can also use it for debt consolidation. You can get a HELOC on your primary residence, secondary home, or investment property.
American Express Statement Credit
Better Mortgage offers a program for American Express cardholders. Through this program, you get a statement card after you finance or refinance a home. The credit is $2,000 for conforming loans and $6,000 for jumbo mortgages.
This is a limited-time program. So, you need to lock in your rate by April 4, 2024, and close by July 8, 2024, to avail of this offer. Moreover, only eligible cardholders can benefit from this program.
Better Mortgage Rates
To give you an estimate, here are the mortgage rates of Better for October 12, 2023, for Miami, Florida.
| Term | Rate | Annual Percentage Rate |
|---|---|---|
| 30-year fixed | ||
| 30-year fixed FHA | ||
| 20-year fixed | ||
| 15-year fixed |
How to Apply For a Mortgage?
The Better.com mortgage application process is straightforward. However, you need to have a credit score of 620 or more to be eligible for purchase loans and cash-out refinance loans. A strong credit score and debt-to-income ratio will also help you get a lower interest rate.
To begin your application, first fill out a form on their website. This form asks for details of the property you are interested in and your preferred location. You also need to fill in a prospective purchase timeline.
- Get a Preapproval Form: Fill out your credit score to run a soft credit check. Following that, Better will assess your credit score and provide a preliminary mortgage preapproval in minutes.
- Submit Documents: To initiate the process, you must provide essential documents, including 2 years of personal and business tax returns, W2s or 1099 forms, as well as bank statements.
- Get a Preapproval Letter: Better performs a credit score check and sends you a digital, underwriter-reviewed letter.
- Lock the Rate: Once you have the purchase contract, you can lock the rate. The company will require your financial documents at this stage.
Better Mortgage Fees
Better Mortgage does not charge any lender fees. However, you need to pay $550 for the appraisal fee. Moreover, you also need to pay some third-party fees associated with mortgages. These charges include:
- Reddit reports
- Flood certification
- Lender’s title insurance
- Other title fees
- Real estate transfer taxes
- Recording fees
- Settlement
- Owner’s title insurance (optional)
Customer Reviews of Better Mortgage Lender
Based on 3,120 reviews, Better Mortgage has secured a 4.6 out of 5-star rating on Google. Moreover, they have a 4.2 out of 5 rating on Trustpilot based on 1,587 reviews. Let’s see what customers have to say about them.
Better Mortgage Reviews: Praises
✅ Feona, in her Better Mortgage Reviews appreciated their online procedure. She also praised the professionalism of their staff.
First off, better is an online lender which means a lot of the communications are done through online portal, if you’re young and prefer a seamless more tech savvy process, better is 10000% your first choice!!
Source: Google
✅ Toan found Better’s dashboard to be quite user-friendly, as he could navigate processes easily.
Andrew and Courtney were very helpful and professional. The process is quite lengthy, but dashboard tasks make it easy to complete each task. I really like the way that better.com is approaching clients. One of the best experiences in taking a loan directly from the lender. I would 100 percent recommend better.com to anyone who wants to avoid broker fees in taking the home loan.
Source: Trustpilot
Better Mortgage Reviews: Complaints
❌ Maria felt unsupported. She also highlighted that Better.com customer service was disrespectful to her and often did not respond to her calls and messages.
I felt very unsupported during this process. Communication was horrible. Bradley did not return my calls or emails and I was constantly pawned off on a processor who read from a script. My “team” did not act like a team. If I asked a question the reply was often, “Like I already said….” Just disrespectful and terrible customer service.
Source: Trustpilot
❌ Julia highlighted that Better’s staff had no updates regarding her mortgage status. She also highlighted their representatives were hard to reach out to.
It started really well – found better through bankrate, they contacted me via phone pretty quickly. Filled out an application online. Then silence for three weeks. Not responding to emails. The only way to get in touch with them as to schedule a phone appointment on their site. I did that at least seven times because they do call you back but have no updates.
Source: Google
Better Mortgage Reviews: Pros and Cons
Let’s evaluate the pros and cons of Better Mortgage to see if they are the ideal choice for you.
✅Pros
There are certain advantages of working with Better Mortgage.
- No Lender Fees: Better Mortgage doesn’t charge origination, application, processing, or underwriting fees.
- Quick Process: Better Mortgage offers you a pre-approval letter in 3 minutes. Moreover, you can also lock in a rate and get a loan commitment within 24 hours.
- Low Interest Rates: Better’s interest rates are lower than some of their competitors.
- 100% online: Better Mortgage’s online process makes the overall process lightning-fast as you can apply for the mortgage within minutes.
❌Cons
During our research, we found certain limitations of Better Mortgage.
- No Hard-to-find Loans: Better Mortgage doesn’t provide hard-to-find loans such as construction loans or renovation loans.
- No Physical Branches: You cannot contact Better’s representatives in person as they do not have offices.
Alternatives to Better.com
» Jump to: Better Mortgage vs. Rocket Mortgage | Better Mortgage vs. Bank of America
1. Better Mortgage vs. Rocket Mortgage
Rocket Mortgage is also an online mortgage lender like Better. In 2022, they achieved an annual closed loan volume of $133 billion and became the biggest mortgage lender in the U.S.
Rocket Mortgage provides you with a pre-approval in 8 minutes. They offer loans like fixed and adjustable-rate conventional loans, jumbo loans, and FHA loans. However, they do not provide USDA, home equity, HELOCs, land loans, or loans to purchase foreclosures.
2. Better Mortgage vs. Bank of America
Bank of America is the biggest national bank and has processed thousands of home mortgages. You can apply for fixed and adjustable-rate conventional loans, jumbo loans, and FHA loans. However, Bank of America doesn’t offer USDA loans.
The interest rate of Bank of America is typically lower than the national average. However, you need a higher credit score to be eligible for a loan. For example, to get a conventional loan, you need a credit score of 620 with Better. However, with Bank of America, it has to be 660.
» Check current mortgage rates of Bank of America here.
Should You Go For a Better Mortgage?
Yes, you should. Better Mortgage is a 100% online lender that specializes in offering conventional, FHA, VA, and jumbo loans. The whole application process at Better is easy to navigate and seamless. Moreover, it doesn’t charge any lender fees or commissions.
With Better Mortgage, you can get customized rates as per your loan requirements in minutes. You can also get a pre-approval letter in 3 minutes. Moreover, Better’s average closing time is 32 days, 10 days faster than the industry average.
Reviews of Better Mortgage suggest that it is a good option for you, provided they offer the loan type you want to apply for. Their mortgage rates are more or less similar to the national average. However, you save on origination fees, application, processing, or underwriting fees.
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Frequently Asked Questions
What is Better Mortgage?
Better Mortgage is an online lender that operates across the U.S. They offer both fixed & adjustable rates for conventional and jumbo loans. Better also offers VA loans and FHA loans. Read more to know the eligibility criteria to qualify for the loan with Better Mortgage.
Is Better Mortgage a good lender?
Yes. Better Mortgage is a good lender. They charge no lender fee and have interest rates similar to the national average. Moreover, you get a completely online experience. However, you should only go for them if you are comfortable with a 100% process with no in-person support.
Is Better.com legit?
Yes, Better.com is a legitimate company that offers mortgage services across the US. The company was founded by Vishal Garg in 2014 and has served over 400k customers since then. Read our blog to learn more about the Better Mortgage.
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