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Better mortgage review
This fintech lender gets rave reviews from past borrowers — but its loan selection is limited.
- Choose this lender for competitive rates and low closing costs.
- Choose another lender if you want a VA, USDA, HELOC, home equity, construction or commercial loan.
- A good option for tech-savvy borrowers looking for a conventional or FHA loan.
Details
| Loan products offered | Conventional, Jumbo, FHA, Refinance |
|---|---|
| Minimum credit score | Refinance: 680 All other loans: 620 |
| Minimum down payment (Conventional) | 3% |
| State availability | Not available in: HI, MA, MN, NV, NH, VT, VA |
| NMLS # | 330511 |
Our take on Better mortgage
Better is a digital mortgage lender that could help you save money over traditional lenders that often charge hundreds in origination and application fees. Because there’s no middleman or retail locations to support, it’s able to offer competitive rates and charges no origination fees or commissions.
The company gets high marks from customers, who praise the company’s service team and online loan portal, which allows you to track your loan status, communicate with your loan team and send in documents. Better also offers special discounts on its mortgages if you use an affiliated real estate agent.
But its home loan selection is somewhat limited, there’s no in-person branches and it’s not available in all states. As a fully digital lender, Better is best suited for the tech-savvy, cost-conscious borrower who knows their way around a computer and prefers to handle everything electronically.
Better requirements
To find out if you’re eligible for a Better home loan, visit the company’s website. Basic eligibility for a mortgage loan includes:
- Two years’ history of employment
- A FICO credit score of 620 or higher
- No history of bankruptcy in the past two years
Documentation
The documents you’ll need to apply for a home loan from Better include:
For employed persons:
- Photo identification
- Past two years’ employment history
- Your most recent pay stub
- W2 statement for the past year
- Most recent personal tax return
- Other documentation
For self-employed persons:
- 1099 statements for the past year
- Most recent two years’ personal tax returns
- Most recent two years’ business tax returns (if filed)
- A year-to-date P&L statement (may not be required)
- K-1 statements (if you own part of an S-Corporation or Partnership)
- Other documentation
Costs and fees
Better doesn’t charge any lender fees, which means you won’t have to pay an application or origination fee. Note that you’ll still have to pay third-party fees such as appraisal fees, title services and recording charges.
How to apply for a mortgage with Better
To get started:
- Go to Better’s website and select Get Started.
- Choose either Are you buying? or Refinancing a home?, then select See rates.
- Answer the questions asked to complete the form. Depending on where you are in the homebuying process, the questions dynamically change to guide you through the appropriate forms.
- As you progress through the forms, you’ll be asked to approve a soft credit pull.
- After completing the application, you should receive a preapproval decision and be connected with a loan officer. If additional information is needed, you’ll be notified by Better customer service.
What types of mortgages can I get through Better?
- Conventional
- FHA
- VA
- USDA
- Jumbo
Other mortgage products offered by Better
Better also offers these specialized types of mortgages.
- Bridge loans. Allows you to make an offer on a new home without being forced to sell your old one first.
- Mortgage refinancing. This type of loan can help reduce your interest rate, lower your monthly mortgage payment and get rid of PMI.
Alternatives to Better
Better offers a streamlined digital application process that cuts out the middleman, affording you more competitive rates and lower closing costs.
But not everyone is comfortable with a digital-only mortgage application process. Better may appeal more to tech-savvy borrowers who upload documents from their smartphone like second nature.
If you don’t fall into this category, you may want to go with a more traditional lender with local branches or one that offers both digital convenience and in-person support when you need it, such as Freedom Mortgage and Guaranteed Rate.
Find your perfect match by comparing lenders and lender marketplaces by the type of home loan you’re searching for, state availability and minimum credit score for a conventional loan. Select See rates to visit the lender’s website for a personalized quote.
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Better reviews and complaints
As of August 2021, Better has a 3.96 out of 5 rating with the Better Business Bureau (BBB) and a 4.4 out of 5 rating on Zillow from hundreds of customers. Better has been accredited with the BBB since 2018 and has a B rating with 146 complaints registered over the last three years. Several BBB complaints are related to Better’s $550 appraisal fee, which is required to lock in the interest rate.
Customer reviews — both positive and negative — tend to focus on how automated the loan process is, with several reviewers comparing it to an assembly line. When everything runs smoothly, loans are completed on time and the process is simple. But when there’s an issue, some users complain that it’s hard to get any personalized help.
Pros and cons of Better
Pros
- Matching technology. Better’s matching technology can help find loans for unique financial situations and personalized discounts for borrowers.
- Better price guarantee. As of March 2021, Better attempts to match any competitor’s offer and credits you $100. If Better can’t match the offer, you get to keep the $100.
- 21-day closing commitment. Better is committed to closing loans in 21 days for eligible borrowers buying single family/detached unit homes.
- Informative website. Better’s website offers a range of resources, including calculators and homebuying guides.
Cons
- Not available in all states. Better is working on expanding, but for now, services are not available in HI, MA, MN, NH, NV, VA and VT.
- Limited loan types. Better doesn’t currently offer VA, USDA, HELOCs, home equity, construction or commercial loans.
- No branch locations. As a digital lender, you won’t be able to meet with a loan officer face to face.
What is Better?
Launched in 2016, Better is a digital lender headquartered in New York, NY. Since its inception, Better has funded more than $25 billion in loans. In 2018, Better launched its Better Real Estate division, which helps match buyers to agents. And in 2019, the company introduced Better Cover and Better Settlement Services to help simplify the home insurance and title insurance process.
