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Better.com is a great fit for homebuyers and refinancers who are looking for transparency during the mortgage process and a lender that offers competitive mortgage rates. Another value-added perk is that Better.com closes 10 days faster than the industry average. This Better.com 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.com loan officers don't work on commission—so you won't be charged fees or a commission for using this lender.
No origination fees: Many mortgage lenders charge for the privilege of getting a loan. Better.com charges no origination fee, helping you save on your overall closing costs, which can range anywhere from 0.5% to as high as 2% depending on the lender
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.com, you can get a rate quote in as little as three seconds and a pre-approval in around three 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.com will hold the mortgage 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.com 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. In other words, Better.com's mortgage pre-approval letter can help you stand out since it means it shows you're more financially ready to make such a large purchase.
100% online application process: Most of the closing process is done completely online (with the exception of signing the final documents). Simply fill out their online application form and 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.com.
Fast closing timeline: Better.com 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 in Massachusetts, Minnesota, Hawaii, Nevada, New Hampshire, Virginia, and Vermont can't get a mortgage with Better.com.
Discount programs: Sure, it sounds great that you may be able to get a discount on your mortgage. However, Better.com doesn't offer this program in all states. Contact them to find out whether it's available in your area.
Qualifying for a Better.com mortgage 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.com 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.com offers loans with DTIs as high as 50% for the most creditworthy borrowers.
In addition, Better.com offers mortgages 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.com. You can also get an instant online approval, which you can use right away to start shopping for homes. The lender offers customization options (applicants can choose a term anywhere from 8 to 29 years) for applicants with a wide range of credit scores.
SoFi Mortgage is another popular mortgage lender worth considering due to their membership discounts and competitive interest rates. 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.com 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.com has an average close time of just 32 days. Some lenders may take 45 days or more.
You don't like 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.com 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. If you know your way around a computer, getting a mortgage from Better.com can be fast and easy.
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