Better Mortgage is a tech-powered independent mortgage lender backed by big investors like Citi, Goldman Sachs, and American Express. Better Mortgage offers conventional loans, jumbo loans, and FHA loans. Its sleek platform offers basic pre-approval based on a soft credit pull in three minutes. The average closing time is 32 days – about 10 days quicker than the industry average.
Loan types: Purchase, Refinance
Loan products: Conventional, Jumbo, FHA
APRs start from: 2.477%
Minimum credit score: 620
Repayment terms: 15-30 years
One of the best things about Better Mortgage’s tech-powered mortgage process is that it can get you pre-approved, formally approved, and into your home quicker than most other lenders. Another benefit to choosing Better Mortgage is the absence of any lender fees. That means there are no origination fees, no application fees, no processing fees, and no underwriting fees. The end result: your APR ends up being less than you would pay to most other lenders.
On the flipside, Better Mortgage has fewer loan products than other lenders. FHA loans are offered for purchase but not for refinance, while VA and USDA loans aren’t offered at all. As of October 2021, Better Mortgage still wasn’t licensed to do business in four states: Hawaii, Massachusetts, Nevada, and New Hampshire.
Better Mortgage’s sleek digital platform gives you basic pre-approval (similar to what most lenders call pre-qualification) within three minutes and formal pre-approval within 30 minutes – which is better than the drawn-out process typical of larger banks. The platform emphasizes transparency, letting you know exactly where you are at all times during the process. If you get stuck, Better Mortgage offers 24/7 phone assistance. You’ll be given the option of locking in your rate immediately after basic pre-approval.
Better Mortgage breaks the mortgage process down into five steps:
1.Basic pre-approval. Find out how much you can borrow and your interest rate in as little as 3 minutes – and lock in the rate if you it looks good to you. At this point, you’ll get a basic pre-approval letter that you can show to agents and sellers. This letter is based on your stated income and a soft credit pull.
2.Home search. Look for a home on your own or with the help of one of Better Mortgage sister company Better Real Estate’s vetted agents.
3.Verified pre-approval. Upload financial documents such as pay stubs, tax returns, and bank statements for Better Mortgage to review. If approved, you’ll get a verified pre-approval letter that you can show to agents and sellers that require a more formal letter than the basic one you received at the beginning. This letter is based on your income, assets, and a hard credit pull. It takes around 20 minutes to upload all documents and another three minutes before you receive your letter.
4.Make an offer. With your verified pre-approval letter ready, you can now make an offer with confidence.
5.Close. Work with Better Settlement Services and Better Insurance (or external services, if you prefer) to close your loan. The exact timing depends on a few factors, including how quickly you can submit all required documents, as well as the timing of third-party services associated with the mortgage process. Better typically closes within three to six weeks, with an average close time of 32 days – 10 days quicker than the industry average.
Better Mortgage finances purchasing or refinancing related to single-family homes, multi-family homes, townhouses, condominiums, planned unit developments, and investment properties. The minimum credit score for all Better Mortgage products is 620, while down payments vary from product to product.
Purchase options include:
Refinance options include:
Interest rates at Better Mortgage are close to the national average, but the absence of any lender fees brings the APRs to well below average. Repayment terms are for 15, 20 or 30 years, and 5/6, 6/10, and 10/6 ARMs are also on offer. Like other top lenders, Better Mortgage allows borrowers to pay points (1 point = 1% of the loan amount) at closing in exchange for a lower interest rate.
Better Mortgage is one of the rising stars of mortgage lending, using technology to change the way people apply for their homes. While the banks can keep you waiting with loads of paperwork and inefficiencies, Better Mortgage has streamlined the whole process from A to B–giving you less of a headache and ensuring you can get in a home as soon as possible. The rates and fees are highly competitive, too. Overall, if you want a fully digital mortgage experience and if you live in one of the 46 states where Better Mortgage is licensed, then you should definitely check it out.
Better Mortgage offers a fully digital mortgage experience backed by 24/7 phone assistance. The lender has a B rating at the Better Business Bureau and 4.3-star rating from 600+ reviews on Trustpilot.
HQ: New York, NY