Better Mortgage Review 2023

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.

• Methodology

  Bankrate's expert editorial team gathers mortgage lender information through a variety of means, including direct contact with lenders, regulatory filings and assessments by reputable third parties. Our research takes into account three main factors: affordability, availability and borrower experience.

  Bankrate's mortgage reporters and editors have decades of experience covering the mortgage industry. Based on the three main criteria, our team evaluated more than 85 lenders, assigning each a Bankrate Score out of five stars. Here's how we assess each factor:

  • Affordability: Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) the lender's lowest advertised annual percentage rate (APR) based on Bankrate's sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors; and 2) established customer discounts or incentive pricing, when applicable.
  • Availability: What loan programs does the lender offer, and how quickly will your application be approved and processed? We evaluate lenders for loan timelines and diversity of mortgage products.
  • Borrower experience: Finally, we delve into what it's like to deal with the lender as a consumer, including the lender's application process and availability of customer service support..

  Bankrate's methodology page spells out our rating process in greater detail.

  Our editorial team confirms the accuracy of data at the time of publication and is dedicated to maintaining the timeliness of information.

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.