Better Mortgage review 2022

Better Mortgage

Overview: best for first-time homebuyers who seek an entirely online mortgage.

Better.com was founded in 2014 with the goal of improving the entire mortgage experience, exploiting online technology. At now, it is capable of funding a loan 100% online, without phone calls or having to meet with officers. It formally became “Better Mortgage” in 2016; as a guarantee of its reliability, it was approved by the federal entity Fannie Mae and been mentioned in Financial Times, Forbes, and The Wall Street Journal.

 

Since the acquisition of its name, it has helped hundreds of thousands of people to buy their dream homes, having funded more than $25 billion in loans.

Better.com seems to be an excellent option for those buying their first home. The company strives to reinvent the lending process by breaking down the conventional pattern of steps and replacing it with helpful and state-of-the-art technology. Besides an exclusively online application and a speedy pre-approval process, Better.com doesn’t get a commission from processing your application. This structure is entirely different from the majority of lending companies, which will be discussed further. Continue reading to learn more about Better.com and whether it’s a good option for your first mortgage process experience.

 

 

What To Know About Better.com

Better.com commits to make the lending process “simpler, faster, and more accessible for all Americans.” If you are fortunate enough not to have experienced the traditional mortgage application process, consider yourself better off than most. The process is typically long, arduous, and at points very invasive. The founder of Better.com used his personal experience to create a better, more painless loan application process.

Better.com eliminates many of the traditional obstacles faced by potential borrowers. Better.com allows its users to apply for a mortgage from home rather than engage in the long and drawn-out process with a traditional lender.

In addition to a completely digital platform, they use a team of what they call “support staff” rather than a sales team. For the most part, traditional mortgage companies use a loan officer to review your financial history and then base your amount, terms, and interest rates on that information. However, most people don’t realize that this loan officer makes typically about 1% in commission off the sale of your loan, which means leaving thousand dollars on the table.

Better.com takes a different approach by providing a support team for those who have questions and need help moving along through the process. This gives users peace of mind knowing that they are working with people who want to provide the best service and the highest number of benefits to the customer, despite being an online mortgage. This approach is not only easier and more enjoyable for the customer, but it also gives them a greater sense of control – which should be present throughout the entire application process for anyone looking to obtain a mortgage for their first home.

 

What Better.com Offers

While there are a limited number of loans, compared to other more comprehensive home loan servicers, Better.com offers a few popular and commonly used loans for supporting a home’s purchase. The loan types at Better.com include conventional, jumbo loans, FHA, and refinancing.

  • Their conventional loans are available in both fixed and adjusted rate options, with mortgages provided for single- and multi-family houses, townhomes, condos, along with planned unit developments.
 
  • Their jumbo mortgage offerings are for those looking to finance their home with over $510,000 in required funding.
 
  • Better.com also offers FHA loans, which cater to first-time homeowners with a low to moderate-income. These loans have a more flexible borrowing structure and are available to lenders with a down payment as low as 3% for those who qualify.
 
  • If you are looking for a better interest rate or a revised loan term, Better.com offers refinancing services to their lenders, as well.

The company can also provide homeowners insurance and real estate, making itself a one-stop-shop for prospective homebuyers.

 

 

What Makes Better.com Stand Out From Its Competition

Better.com has revolutionized how people apply for mortgages. A few features set them apart from more traditional lenders. Everything about the service they provide is meant to make things easier and more convenient for home buyers. Here is how they provide excellent service and let you take charge of the process.

They offer support 24/7. Unlike traditional lenders who are only available during business hours, the same ones that require you to be at work, Better.com has team members available to assist you at night and on the weekends so that you can get help when it is convenient for you.

Better.com doesn’t charge its applicants lender fees, which include both application and origination fees. Third-party fees still apply; as the category name suggests, those are not charged directly from Better.com.

They have a “better price guarantee”. This is something that sets Better.com apart from its competition: they promise their applicants to be given the lowest closing rate possible compared to their competition. Their guarantee states that if Better.com does not cost at least $1,000 less than other lenders regarding closing fees, then they will pay you $1,000.

Last, but not less important: Better Mortgage closes up 10 days faster than average, as is claimed on the website.

 

 

Available Loan Products

Better.com provides loans for many different kinds of borrowers. Whether you are a first-time homebuyer or are trying to refinance your own, they can offer a product to suit your needs. Below, you will find information regarding the loan types that they provide.

 

Loan Products Offered Minimum Down Payment Minimum Credit Score Available States
Conventional
3%
620
Every State, except HI, MA, NV, NH
Jumbo
5%
620
Every State, except HI, MA, NV, NH
FHA
3%
580
Every State, except HI, MA, NV, NH
Refinance
3%
680
Every State, except HI, MA, NV, NH
While Better.com does not have the widest variety or selection of loan products, they offer standard, competitive rates to their buyers. Just like a traditional lender, Better.com considers your credit score and history, employment status along minimum salary, among the information to determine your loan eligibility. The company does not list their specific qualifying numbers; however, the majority of lenders consider the same parameters when deciding eligibility, even if weighing up the single factors to a slightly different extent. An interesting perk is that Better Mortgage allows the use of a co-borrower: both your credit score and the co-borrower’s one will be assessed to determine how much of your house you will be able to finance. If you want to refinance a current mortgage, Better Mortgage will offer a lower competitive term and/or an improved term, to allow for affordable repayment. Of course, refinancing will have its costs: Better.com claims these costs to be in the range of $1,500- $3,500 in most cases, depending on the circumstances of the loan.

The Pros and Cons

Better.com really plays by their own rules when it comes to the lending application process, which gives them a significant amount of freedom in providing better service to their applicants. There are a couple of things that make them less competitive in the market compared to other lenders; however, it is likely that they won’t affect you and your loan process.

 

 

Pros

Cons


The Application Process

Applying for a loan with Better.com is relatively simple and quite straightforward. Everything is completed online, and this pre-approval mortgage application can take as little as 3 minutes. You will see your rates, terms, and estimated monthly repayments: at this stage, you go only through a soft credit check, that has no impact on the credit score. To complete the application, you will need to specify standard information: some personal details, property and occupancy type, your employment history, and finances.

After applying for your loan, processing takes about 3-4 weeks in which your lender will ask that you provide further documentation (proof of income and paid taxes), and take some additional steps. This will include an appraisal, inspection, title search, and of course, underwriting.

After the processing procedures are complete, closing and funding your loan typically requires an extra 3-5 days. During this step of the process, you will be provided with the initial agreement for closing, complete your final walkthrough, and finally close your new home if everything goes well. Overall, the process takes about 5-6 weeks, on average.

How is Better Mortgage rated?

As a guarantee of its legitimacy, Better.com is accredited by the Better Business Bureau, and has an A mark, meaning essentially that this company can provide valuable customer service, and can handle well potential complaints. For further proof, there is a sufficient amount of online feedbacks that speak quite well of this lender. On well-known unbiased reviews websites, such as Trustpilot, Better.com has a great customer satisfaction rating, and its representatives keep in touch with those who take the time to review their company. One of the main points that happy customers make is claiming how fast and convenient is to get a mortgage, they were particularly impressed with the ease and design of the platform, as well as the transparency and simplicity of the overall process.

One issue customers had with the service was the level of automation: some felt that they were dealing too much with a robot. However, it is important to note that there are live people available by phone for customers who need more assistance.

Those who have used Better.com also rave about their low-cost refinancing services.

The Key Takeaway

Better Mortgage is your direct choice if you are seeking an entirely online experience of getting a mortgage, sparing you some of the hassle involved when going through the process the conventional way. It is also convenient to use to refinance a current loan. While there are some limitations to its capabilities and service areas, the online company provides excellent customer service and keep the application process simple and relatively fast.

If first-time homebuyers sound like you, you will find Better.com to offer a very easy mortgage application option with minimal extra-costs.

Consider our alternative options if you prefer a bank service, or want to compare among multiple options to meet a more specific need; if living in one of the mentioned unserved States, or having a credit rating below 620.