Better Mortgage Review 2022

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Better Mortgage Review 2022

Better Mortgage provides conventional (including fixed-rate and adjustable-rate), FHA, and jumbo loans. It operates nationally. The lender runs entirely online and provides support for the application procedure.

Pre-approval for applicants may be obtained quickly, sometimes in less than 24 hours. The qualifying criteria for the loan kinds offered by Better Mortgage are very typical, and it also gives certain advantages to first-time homeowners.

Pros Explained

  • Better Mortgage does not impose any origination or commission fees.
  • Pre-approval procedures have been streamlined, and applicants may get a pre-approval letter in as little as 24 hours.
  • The ability to quickly see personalized rates: Interested borrowers are not required to provide their personal information in order to view the rates and terms they could be eligible for.

Cons Explained

  • No offline choices are offered: Those who like filling out an application in person at a branch are not a suitable match for Better Mortgage.
  • accessible loan kinds are few: Better does not provide additional loan kinds; it only provides conventional, jumbo, and FHA loans; VA, USDA, HELOC, and home equity loans are not among the options.
  • Limited appraisal guarantee: Only individuals who deal with Better real estate agents are eligible for the assurance that the loan won’t alter if the appraisal turns out to be less accurate than anticipated.

Searching for loan kinds that Better does not provide? To identify a business that can match your demands, check out our list of the top mortgage lenders.

Types of Mortgage Loans Offered by Better Mortgage

Better Mortgage offers the following types of loans:

  • Conventional mortgages have a maximum debt-to-income ratio of 50% and a minimum credit score requirement of 620. Borrowers must get in touch with Better Mortgage to find out the minimal down payment need; there are no lender costs.
  • Jumbo loan: This kind of mortgage is larger than the Federal Housing Finance Agency’s (FHFA) maximum, which is $647,200 for most of the nation. To find out more about Better’s jumbo loan criteria, borrowers may start the application process or get in touch with the company.
  • FHA loan: Applicants must put down a minimum of 3.5% if their credit scores are higher than 580, or a minimum of 10% if their scores are between 500 and 579. Up to 43% of income might be owed on debt. For further information, you may also refer to the standards established by the US Department of Housing and Urban Development (HUD).
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Better Mortgage Features and Benefits

The characteristics and advantages of Better Mortgage’s service include the following:

  • Programs for first-time homebuyers: Interested parties may be eligible for Freddie Mac-backed initiatives like Home Possible loans. To be eligible, applicants must have an income that is at least 80% of the area median income (AMI), complete a qualifying homeownership course, and live in the property as their primary residence.
  • Discount points: You pay points up advance to get a better mortgage rate. A point typically costs 1% of your loan balance and reduces the rate by a tiny fraction of a percentage point.
  • Guaranteed appraisal: If the appraised value is less than the purchase price, many lenders may refuse to authorize the loan or may amend the loan’s conditions. Even if the appraisal is lower than expected, customers who engage with a Better Mortgage real estate agent won’t have their loan terms altered.

Working with a Better real estate agent could be alluring if you want to be eligible for the assessment guarantee. Before determining which company you want to work with, it’s a good idea to chat with a few agents from different ones.

How to Apply for a Better Mortgage Loan

To apply for a mortgage loan with Better Mortgage, follow these steps:

  1. Go to the lender’s website and click the “Get started” option.
  2. Enter information about the areas where you want to buy a property, and then choose whether you want to apply for a loan, get pre-approved, or locate a real estate agent.
  3. You’ll be able to view the mortgage rates and terms you are eligible for throughout the pre-qualification phase. You should get a letter of pre-approval within 24 hours after providing the necessary data.
  4. By supplying the necessary evidence throughout the underwriting procedure, you may also submit a comprehensive loan application within the stage mentioned above. You’ll want documentation such as tax returns, bank statements, and evidence of income.
  5. Before closing on your home loan, review the closing documentation from Better Mortgage and satisfy any additional requirements.
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Customer Service

Customers may get in touch with Better Mortgage through the following channels:

If you have any questions concerning your loan application, get in touch with your loan officer.

Customer Satisfaction

Better Mortgage ranked third in our rankings after receiving a 6.15 out of 10 in Investopedia’s customer satisfaction survey.

The majority of the 157 Consumer Financial Protection complaints the institution has received in 2021 have to do with loan closings and loan applications.

Account Management

Applicants may follow their loan process, get progress updates, and submit necessary papers using Better Mortgage’s secure online site.

Borrowers will be informed on how to make their first loan payment after closing. Through the same site, you may manage your loan account online and get in touch with customer care if you have any questions.

Alternative Choices

Shopping around with many lenders is the best method to obtain the ideal loan. Along with Better Mortgage, keep the following lenders in mind.

Better MortgageWells FargoRocket Mortgage
Minimum Credit Score620 (conventional)620 (conventional)620 (conventional)
Maximum DTI50% (conventional)Varies50% (conventional)
First-Time Homebuyer ProgramsYesYesYes
RatesNot disclosedVaries30-year fixed: starting at 6.533% APR 15-year fixed: starting at 5.932% APR
FeesNoneVariesNot disclosed
Types of LoansConventional, FHA, JumboConventional, VA, USDA, FHA, Jumbo, interest-onlyConventional, VA, Jumbo
Average Time to Closing32 days60 days26 days

Better Mortgage doesn’t impose lender fees, but its rates may not be the lowest. Before choosing a lender, it is essential to shop around with many of them and compare APRs.

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Compare lenders based on criteria like the following:

  • APR: A mortgage’s APR (annual percentage rate) takes interest and costs into account. When comparing the costs of loans from different lenders, it is a more true comparison.
  • Check this component to see whether an offer is reasonable for you since down payment requirements will influence the amount you must pay up front for a mortgage.
  • Discounts: Lenders typically charge 1% of your loan amount for each point you buy, and points assist decrease your interest rate.
  • Loan terms: To assist borrowers afford monthly payments, some lenders provide loan terms longer than the typical 15- and 30-year durations.
  • Prepayment penalties are uncommon, but it’s still important to confirm that your preferred lender doesn’t impose them.
Final Verdict

The key benefit of Better Mortgage is its totally online, automated pre-approval and application procedure; this makes it a fantastic choice for tech-savvy borrowers who don’t want to deal with a real person. For people wanting to buy a house who want to be competitive with other buyers, being able to get a pre-approval within 24 hours may be a huge benefit.

The disadvantage of Better Mortgage is that it doesn’t provide VA or USDA loans, while not charging lender costs and being accessible nationally. If you’re interested in conventional or FHA loans, it’s still a lender worth taking into account given its expedited procedure and other benefits.

How We Review Mortgage Lenders

Investopedia is committed to provide customers objective, in-depth assessments of mortgage lenders. With the help of approximately 1,500 data points, we evaluated 45 mortgage lenders and learned the following:

  • Customer satisfaction, online applications, perks and awards, etc.)
  • functional aspects (state licensing coverage, number of loan officers, etc.)
  • offered loan products (fixed-rate, FHA, USDA, etc.)
  • Accessibility (days to closure, minimal debt-to-income ratio, etc) (days to closing, minimum debt-to-income ratio, etc.)

In order to find out which characteristics clients think are most important and how pleased they are with different lenders, we also polled 1,195 mortgage borrowers. To aid readers in making wise judgments regarding house loans, mortgage lenders were objectively appraised in the aforementioned areas.

Read more in our full mortgage lender review methodology.

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