finder.com’s rating: 3.9 / 5.0
This high-tech company is on a mission to change the mortgage game.
Thanks to its advanced technologies and algorithms, Better is able to provide fast, fee-free home loans. But only if you live in one of its select handful of states.
|Description||An online lender that charges no origination fees.|
|Loan types||Purchase, Refinance, Jumbo, Fixed, Adjustable|
|Minimum down payment||3%|
|Other fees||Better earns revenue by originating your mortgage — not by charging fees for commissions or service.|
Many customers are pleased with Better’s hard-to-beat rates, friendly and available customer service team and easy online process. The company is accredited through the Better Business Bureau and currently has an A+ rating.
A few reviewers reported issues with loan denials and delays during the process.
What can I expect with Better?
Better operates solely online and strives to provide a new and improved way to get a mortgage.
If you qualify for mortgage with Better, you can expect:
- Speedy preapproval. Take about 20 minutes to upload required documents, then get a preapproval notice within three minutes. Better pulls a soft credit check, which won’t show up on your credit report.
- Types of mortgages offered. Better offers fixed and adjustable mortgages for conventional and jumbo loans on single-family homes, multi-family homes up to four units, townhouses, condos and planned unit developments (PUD).
- Rate locking. Once you’re approved at a certain rate, that rate won’t change while your loan is processing.
- Fees. Better doesn’t charge any direct fees for creating your loan, but expect to pay common third-party fees for things like appraisals, credit checks, title fees and insurance and real estate transfer taxes.
- No prepayment penalties. Pay off your mortgage early without incurring any fees or penalties.
Does Better offer mortgages in my state?
Better currently offers mortgages in these US locations: Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, DC, Delaware, Florida, Georgia, Iowa, Illinois, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Jersey, New Mexico, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Washington, Wisconsin, West Virginia, Wyoming.
How does Better Mortgage compare?
Do I qualify for a mortgage with Better?
As with other lenders, Better looks at your credit score, employment history, tax statements, pay stubs and other relevant information to determine your eligibility for a mortgage. While the company doesn’t list specific qualifying numbers, most lenders want to see a credit score of at least 620 for conventional loans, unless you have a substantial down payment.
To find out if you qualify for a mortgage, fill out its online preapproval form and receive an answer within minutes.
Pros and cons
- Quick preapproval. Get preapproved online in minutes.
- No origination fees. Unlike with other lenders, Better doesn’t charge to originate your mortgage.
- Better price guarantee. If you find lower rates elsewhere, Better will beat it by at least $1,000 or give you $1,000.
- No middleman. Better is a direct lender — meaning it processes your application and underwrites, closes and funds your loan itself.
- Only available in some states. They’re working on expanding, but for now, you must live in select states to get a mortgage through Better.
- Limited loan types. Better does not currently offer FHA, VA, USDA, construction or commercial loans.
How do I get started?
- Go to Better’s website and hover over the green Get started button. Choose the Purchase option.
- Select the option that best fits your situation to be directed to the appropriate online form.
- Follow the instructions to complete the form, including uploading all requested documents.
- You should receive a preapproval decision within minutes after completing the form. If it needs additional information, you’ll be notified by Better customer service.
Have these documents ready before you apply:
- Current identification, such as a US driver’s license, state ID or passport
- W-2 forms
- Pay stubs
- Tax returns
- Bank statements
I got the mortgage. Now what?
Once you close on your home, Better services your loan for about 30 days through its partner, LoanCare. After that, your loan is transferred to a third-party to continue servicing it.
You should receive an email from Better as soon as your loan closes with instructions on how and where to make your first and subsequent payments. If you have questions, contact them directly at 415-523-8837 or firstname.lastname@example.org.
Better mortgages are geared toward younger homebuyers looking for an easily online process. While this company offers competitive rates and no hidden fees, there are limitations regarding the type of loan and property that it’ll fund.
You’ll also need to live in one of its licensed states. Not sure if Better is right for you? Consider your other mortgage options before making a decision.
Frequently asked questions
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