We are committed to full transparency in our mission to make the world smarter, happier, & richer. Offers on The Ascent may be from our partners - it's how we make money - and we have not reviewed all available products and offers. That transparency to you is core to our editorial integrity, which isn’t influenced by compensation.
Better Mortgage is a great fit for homeowners who are looking for transparency during the mortgage process and a lender offering competitive mortgage rates. Another value-added perk is that you may be able to close on your loan faster compared to other, traditional mortgage lenders. This Better Mortgage review will highlight the pros and cons and help you figure out if the lender is right for you.
No origination fees and a digital-only experience ensures borrowers cut costs while saving time. Case in point, borrowers can secure preapproval in minutes.
No commissions: Better Mortgage's loan officers don't work on commission, so you won't be charged fees or a commission for using this lender.
No origination fees: This is a common fee that many mortgage lenders charge for the privilege of getting a loan. Better Mortgage charges no origination fee, helping you save on your overall closing costs.
Get loan estimates instantly: After you submit all the required information, most traditional lenders take a few days to give you a loan estimate. With Better Mortgage, you can get a rate quote in seconds and a pre-approval within a few minutes. This helps you shop around for lenders quickly.
Ability to lock in your interest rate on demand: Applicants can lock in their interest rate whenever they want during the loan process. Most lenders don't guarantee the rate you get in your initial quote, but Better Mortgage will hold the rate for you so you can complete your application with the knowledge that it won't change by the time you close on your home.
Quick verified mortgage pre-approval letter: Better Mortgage offers this letter, which uses automated technology to digitally underwrite your loan so that when you make an offer on a house, you can make your bid more competitive -- sellers will see that you're fully underwritten.
100% online application process: Most of the closing process is done completely online (with the exception of things like signing the final documents). Simply fill out their online application form and, if you want to upgrade to their Verified Pre-Approval process, submit any necessary documents using their secure system.
Access to a dedicated loan officer: Once you complete the pre-approval process, you'll be assigned a loan officer and will receive contact details. You can contact this person during office hours throughout your loan application process.
Discounts available: Borrowers can receive up to $2,000 in lender credits through the Better Real Estate discount program. To be eligible, you'll need to choose Better Mortgage Corporation as your mortgage lender and a real estate agent who was referred to you by Better Mortgage.
Fast closing timeline: Better Mortgage works to help you close on your loan in as little as 21 days, or less if you have verified pre-approval and are closing on a single family or detached-unit property. For other types of properties, conventional loans can close as soon as 25 days, and jumbo loans as soon as 30 days, all faster than industry standards.
Availability in all states: Currently, borrowers from Massachusetts, Minnesota, Hawaii, Nevada, New Hampshire, Virginia, and Vermont can't get a mortgage with Better Mortgage.
Discount programs: Sure, it sounds great that you may be able to get a discount on your mortgage. However, Better Mortgage doesn't offer this program in all states. Contact them to find out whether it's available in your area.
Qualifying for a Better Mortgage home loan depends on your financial situation and whether you live in a state where the lender offers loans. Underwriters look at the amount of debt you have, your credit score, and other factors to determine the likelihood that you'll pay your mortgage on time.
One of the main factors Better Mortgage looks at (much like other lenders) is your debt-to-income ratio, or DTI. This number (expressed as a percentage) reflects how much monthly debt you have compared to your gross monthly income. Lenders use it to determine how large a mortgage you can afford.
Better Mortgage offers loans with DTIs as high as 50% for the most creditworthy borrowers.
In addition, Better Mortgage offers loans for those who have a FICO® Score as low as 620, but the higher yours is, the lower your interest rate is likely to be.
It's smart to shop around for the best mortgage rates and terms. Here are a few other mortgage lenders to consider.
Rocket Mortgage is one of the most well-known lenders in the mortgage space, and it offers an intuitive online application, much like Better Mortgage. You can also get an instant online approval, which you can use right away to start shopping for homes. The lender offers customization options for applicants with a wide range of credit scores.
SoFi Mortgage is another popular mortgage lender worth considering. Applicants can choose from fixed- or variable-rate mortgages and avoid origination and application fees. SoFi's underwriting also looks beyond your credit score, weighing other factors such as your employment situation, income, and history of on-time payments. You can also put down as little as 10% for your down payment and receive up to $500 in loan processing fee discounts.
Better Mortgage is one of the most competitive lenders on the market, considering it offers a faster loan process and fewer fees than most.
Not sure if it's right for you? Here are a few indicators you should go with this lender.
You're looking to close on your home quickly. Better Mortgage can close on your mortgage in as little as three weeks, and sometimes less. Some lenders may take 45 days or more.
You hate paying extra fees. Given that a mortgage is probably the largest loan you'll ever take out, you want to save as much money as you can. Better Mortgage doesn't charge loan officer commissions, nor application, underwriting, or lender origination fees, so you can keep that money for other expenses such as a moving service or furniture for your new home.
You're tech-savvy. This lender offers a completely online application process and the ability to underwrite your loan using automated technology. So if you know your way around a computer, including how to upload documents, getting a loan from Better Mortgage can be fast and easy.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool brand that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2020
The Ascent. All rights reserved.