Designed for the tech-savvy customer that prefers an online experience, Better Mortgage offers a seamless and user-friendly application process. With a transparent lending experience, comparable mortgage rates and fast approval, the only downsides to Better Mortgage is that it doesn’t offer government-backed loans and only serves 26 states and the District of Columbia.
Better Mortgage offers conventional and jumbo fixed-rate loans and adjustable-rate mortgages (ARMs). If you’re interested in government-backed loans, like FHA, VA or USDA mortgages, you won’t find these options with Better Mortgage.
Eligible properties include:
- Single-family homes
- Multi-family homes (up to four units)
- Planned Unit Development (PUD)
With this type of loan, your interest rate stays the same for the entire life of the loan, so you can expect the same monthly payments each month. Offered as 15-, 20- or 30-year terms, this option is what homebuyers usually choose if they plan to live in the home for a while. Fixed-rate loans with Better Mortgage are available for single-family, multi-family, condos, townhomes and PUD.
The interest rate on an ARM will change after the initial fixed period which usually carries a low rate. This option is a good choice for homebuyers who plan to flip a house or resell after a few years of living in it. ARMs with Better Mortgage are available as 5/1, 7/1 and 10/1 terms.
You have to get a jumbo loan if you’re planning on buying an expensive home above the conforming limits. It’s available at Better Mortgage as a fixed-rate loan or ARM.
An option if you’re looking to secure a new loan. With Better Mortgage, you won’t have to pay origination fees on the loan, but you will have to pay closing costs.
Current loan rates are published directly on Better Mortgage’s website.
You can tailor the quote to your needs by adjusting the points and credits for each loan type. Taking credits will come out to higher interest rates, but lower upfront costs. In contrast, paying points will reduce your interest rates, but results in higher upfront costs.
Better Mortgage does not charge origination fees or commissions and promises radical transparency to the borrower.
Service at Better Mortgage is a mix of digital convenience and in-person support. Its digital platform makes the mortgage process a quick and self-driven experience where you input information into intuitive online forms. When you consent to a soft credit pull, Better Mortgage’s platform will also pre-fill information on any existing loans you have.
Better Mortgage’s loan officers aren’t motivated by commissions. Instead, they’re rewarded with bonuses when they receive high customer satisfaction ratings from borrowers. The theory behind this method is that its loan officers will put more weight on answering your questions clearly rather than closing the mortgage as quickly as possible.
Although Better Mortgage is a direct lender, the company will transfer your loan to a servicing company after your loan closes. This can lead to issues for you, as your permanent servicer might not give you the same kind of support offered by Better Mortgage. However, the company claims that it will contact the permanent servicer on your behalf should any issues arise.
Better Mortgage started in California but has since expanded into 26 other states and the District of Columbia.
Below you’ll find a list of where Better Mortgage is licensed to originate loans from:
|District of Columbia||Mississippi||Washington|
Better Mortgage only offers loans to those with a minimum credit score of 620, which is considered “fair” under FICO credit score ranges. Although 620 is the baseline requirement, you’ll get better mortgage rates if you have a higher credit score.
Better Mortgage will also consider your employment history, income, debt-to-income ratio (DTI) and savings. The latter is mainly for your down payment.
Before you begin, you can head over to Better Mortgage’s website, go through its resources, and educate yourself about the homebuying process. Learn about how your credit score affects your mortgage, how to improve your DTI ratio, what a loan estimate contains and more.
If you want to get started with the mortgage process, you can complete the entire application online. From loan application to preapproval, your whole mortgage journey can be accomplished without having to meet a loan officer face-to-face. If you have all the documents needed, you won’t even have to speak to a human being over the phone, unless you want to.
When you apply, you’ll open an online account where you can track every step of your application process. The site is mobile-friendly, and you won’t have to download a separate app to access it.
After submitting your information, a menu of loan options that you’re qualified for will appear with an estimated APR and monthly payment, as well as fees or credits available for each option. With other lenders, this process could take days.
You’ll get your “underwriter-reviewed” preapproval letter in as little as 24 hours after you submit the appropriate documents. With preapproval, you can shop for a home, and the seller can have confidence that you’ll qualify for the loan at a particular purchase price.
After processing your loan and securing funds, Better Mortgage will then transfer your loan to a permanent servicer that handles the loan for the remainder of the term.
Better Mortgage provides its borrowers with a quick and simple mortgage process via an online origination platform. It allows you to complete your mortgage paperwork without having to leave your home, although you do have access to human help if needed. The whole process is so fast, you can have a preapproval letter in hand as soon as 24 hours. And the extra kick? Better Mortgage does not charge any origination fees.
However, there are a few pitfalls you should consider before you opt for Better Mortgage. First, the company does not offer FHA, VA or USDA loans, nor does it offer home equity lines of credit (HELOCs). There are no brick-and-mortar branches, and the lender only serves 26 states and the District of Columbia. Lastly, Better Mortgage’s superior customer support does not necessarily translate to excellent support from your permanent loan servicer.