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Better Mortgage Review 2023

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At a glance

Better Mortgage
NMLS: 330511
Editor's take

Better Mortgage is ideal for tech-savvy borrowers who prefer an online experience. Around-the-clock support and speed sum up its strong suits, but customer service scores are a weakness.

Bankrate Score
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5.0
Rating: 5 stars out of 5
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Customer Rating
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4.3
Rating: 4 stars out of 5

1,352 ratings

Mortgage Percent

Loans offered

Purchase, refinance, fixed-rate, adjustable-rate, FHA, VA and bridge loans

Credit Good

Min. credit score required

620 for conventional loans

Location

Nationwide availability

Available in all U.S. states

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Min. down payment

3.5% for FHA loans, none for VA loans

At a glance

Better Mortgage

NMLS: 330511

5.0

Rating: 5 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Purchase, refinance, fixed-rate, adjustable-rate, FHA, VA and bridge loans

Location

Nationwide Availability

Available in all U.S. states

Credit Good

Min. credit score required

620 for conventional loans

Better Mortgage overview

Better, also known as Better Mortgage, is a direct online lender established in 2016 that  provides a completely digital process: Quotes, rates, loan preapprovals and resources are available 24/7. The lender offers a variety of mortgage options, including purchase, refinance, fixed-rate, adjustable-rate, FHA, VA and bridge loans. You’ll be able to secure a preapproval in as little as three minutes and can close a mortgage in as few as 21 days, although 30 to 45 days for a purchase loan is typical.
 
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Bankrate insight

Borrowers who are also Chime customers can save $500 on closing costs when getting a mortgage with the lender, and some American Express cardholders can get an up to $6,000 credit to their statement. For both promotions, you'll need to meet certain parameters to qualify..
 

Pros and cons of Better Mortgage

Pros
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    Automated process can yield a preapproval letter in three minutes

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    No fees charged

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    Will beat competitor's offer or give you $100 (if you go directly through Better)

Cons
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    No branch locations

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    No home equity loans

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    Some government loans not available

Our Editor’s Take on Better Mortgage

Better Mortgage is ideal for tech-savvy borrowers who prefer an online experience. Around-the-clock support and speed sum up its strong suits, but customer service scores are a weakness.

How Bankrate scored Better Mortgage

To determine Better Mortgage’s Bankrate Score, Bankrate’s editorial team rated it and other lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. (Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews.) We derived its overall score by considering three basic factors:

  • Affordability: As of this review, Better’s mortgage rates were lower than Bankrate’s averages, and the lender doesn’t charge any fees.
  • Availability: You can compare loan options from Better no matter where you live, as the lender operates nationwide. It only offers conventional, FHA and VA loans, however.
  • Borrower experience: J.D. Power rated this lender below average for customer satisfaction in its 2022 mortgage origination study. A bright spot, however: You can easily contact Better any time with questions.

Affordability: 5/5

Better doesn’t charge any origination, application or processing or underwriting fee — a big boost to its affordability quotient. As to terms, Better displays mortgage rates on its website and updates them several times a day. To use the rate tool to obtain a personalized quote, however, you’ll be prompted to sign up for emails from the lender that contain mortgage news and promotions.

Availability: 5/5

Better works with borrowers all across the U.S., offering conventional, FHA and VA loans as well as some creative financing options like bridge loans. If you’re looking for a USDA loan, you’ll need to go to another lender, though.

Borrower experience: 4.7/5

As of this review, Better has a B rating from the Better Business Bureau and a 4.2 out of five stars from Trustpilot, indicating “Excellent” reviews. The lender ranked below industry average, however, in J.D. Power’s 2022 mortgage origination survey for customer satisfaction.

How to apply for a mortgage with Better Mortgage

As a Better customer, you’ll complete a fully digital application process. To get started, you should have a credit score of at least 620, Better’s minimum for purchase loans and rate-and-term and cash-out refinance loans. Be prepared to provide detailed documentation of your financial life.

  1. Run the numbers. Make sure that your credit score, debt-to-income ratio, and savings are in good shape. A strong credit score can help you to secure a competitive interest rate, saving you thousands over the life of your loan.
  2. Gather documents. You’ll need to provide 2 years of personal and business tax returns, W2s or 1099 and bank statements, as well as proof of any alimony or child support payments. As a Better customer, you can link your bank accounts and upload your documents digitally.
  3. Get your verified preapproval letter. Once Better processes your documents and performs a credit check, you’ll receive a digital, underwriter-reviewed letter if you’re preapproved – maybe in as little as three minutes. Better’s underwriters will do most of the work needed to verify your financial details by the time your home offer is accepted and you’re ready to apply for a mortgage. You may be able to close your loan as soon as within 14 days of locking your rate.
  4. Lock your rate. You’ll need to pay a $550 appraisal fee once you have the purchase contract for your new home and are ready to lock your rate. If applicable, you’ll also need to pay a $325 HOA fee.
  5. Submit your documents. You’ll need to upload your financial documents and provide a home insurance quote. Better will already have most of the information they need if you got a Verified Pre-Approval Letter first.

Refinancing with Better Mortgage

Better offers both cash-out and rate-and-term refinance loans. If you’re looking for quick money, you might consider Better’s cash-out refinance loans, which offer preapprovals in as little as three minutes. The lender’s average closing time is 32 days, 10 days faster than the industry average, thanks to a streamlined online process.

Better allows you to roll your closing costs into your new loan when you refinance if you want to save on costs upfront. You’ll need a credit score of at least 620 to qualify for a conventional loan refinance, and you’ll need a credit score of at least 700 to qualify for a jumbo loan refinance.

Special programs offered by Better

Better’s offer for American Express cardholders gives a statement credit after you refinance or finance a home purchase with Better Mortgage. The credit is $2,000 for conforming loans and $6,000 for jumbo mortgages. To qualify, you must lock your rate by April 4, 2024, and close by July 8, 2024. Borrowers who are also customers of Chime, a financial technology platform, can save $500 on closing costs when getting a mortgage with Better.

Compare Better Mortgage to other lenders

Better Mortgage
Rating: 5 stars out of 5
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5.0

Bankrate Score
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Homefinity
Rating: 5 stars out of 5
  • Star
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5.0

Bankrate Score
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Read full review
PNC Bank
Rating: 4.8 stars out of 5
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4.8

Bankrate Score
Info
Read full review

Loans offered

Purchase, refinance, fixed-rate, adjustable-rate, FHA, VA and bridge loans

Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; refinancing; physician loans

Loans offered

Conventional, jumbo, FHA, VA, USDA; refinancing; home equity lines of credit, home equity loans

Min. credit score required

620 for conventional loans

Min. credit score required

620 for conventional loans, 600 or higher for FHA loans and VA loans (can be lower in some cases)

Min. credit score required

620 for conventional loans, 620 for jumbo loans, 620 for FHA loans, 640 for USDA loans

Down payment

3.5% for FHA loans, none for VA loans

Down payment

3% for conventional loans; 3.5% for FHA loans; none for VA loans or USDA loans

Down payment

3% for conventional loans; 3.5% for FHA loans; none for VA loans or USDA loans

Nationwide availability

Available in all U.S. states

Nationwide availability

All U.S. states except Nevada and New York

Nationwide availability

All U.S. states

Better Mortgage customer ratings and reviews

logo

NMLS: 330511

4.3

Rating: 4 stars out of 5

1,352 ratings

Info

This lender has 20 reviews.

Knowledge
Rating: 4.4 stars out of 5
Level of service
Rating: 4.4 stars out of 5
Professionalism
Rating: 4.3 stars out of 5
Responsiveness
Rating: 4.3 stars out of 5
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77%
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14%

83% of customers would recommend this lender.

of 20 reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.

Bankrate cannot guarantee or verify the accuracy of the opinions shared by individual reviewers, and reserves the right to reject or remove any review, at any time, for any reason at Bankrate’s sole discretion, including but not limited to those that Bankrate deems inappropriate, fraudulent, invalid, irrelevant, or otherwise outside the parameters of the Bankrate Review Guidelines, the Privacy Policy, or the Terms of Use.

To help serve you with relevant information, the consumer reviews shown below are limited to only those that this advertiser has received during the past 12 months.

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