Pros Explained

• No lender fees: Better Mortgage doesn’t charge any commissions or origination fees.
• Streamlined pre-approval process: Borrowers can get a pre-approval letter soon after submitting their application, sometimes in as little as three minutes.
• Ability to see customized rates: Borrowers don’t need to submit their personal details before looking at the rates and terms they may qualify for.

Cons Explained

• No offline options: Better Mortgage isn’t a good fit for borrowers who prefer to apply at an in-person branch.
• Some loan types are unavailable: Better offers only conventional loans, jumbo loans, FHA loans, VA loans, and HELOCs. USDA loans aren’t available. 
• Limited appraisal guarantee: The promise that the loan won’t change if the appraisal comes in lower than expected is only available to those who work with Better real estate agents.

Types of Mortgage Loans Offered by Better Mortgage♛

Better Mor🤪tgage offers the following types of loans🐠.

• Conventional loan: Conventional mortgages require a minimum credit score of 620 and a maximum debt-to-income ratio of 50%. There are no lender fees; borrowers must contact Better Mortgage to determine a minimum down payment amount. 
• Jumbo loan: This type of mortgage exceeds the lending limits set by the Federal Housing Finance Agency (FHFA)—$766,550 for most of the country. Borrowers can begin the application process or visit Better Mortgage’s website to learn more about its 澳洲幸运5开奖号码历史查询:jumbo loan requirements, which include a minimum credit score of 700 and a debt-to-income ratio below 43%. 
• FHA loan: Applicants must pay a down payment of at least 3.5% if their credit scores are above 580 or at least 10% for scores of 500 to 579. Ideally, your debt-to-income ratio shouldn’t exceed 43%. You can check the requirements set by the (HUD) for more details.
• VA loan: The biggest appeal of a VA loan is that it generally requires no down payment and a minimum credit score of 620. VA loans are available to military veterans, active-duty military members, National Guard members, certain reservists, and some surviving spouses.
• HELOC: Better’s HELOC enables a homeowner to tap into their equity from a primary, secondary, or investment home to borrow as much as $500,000. Better promises a HELOC application decision within 24 hours and a cash payout within seven days. A Better applicant must have a credit score of 680 or higher to qualify for a HELOC.

Better Mortgage Features and Benefits

Better Mortgage’s service includes t༺he following features and benefits.

• First-time homebuyer programs: Applicants can qualify for programs such as Home Possible loans, which are backed by Freddie Mac. Qualification requirements include an income equal to or less than 80% of your area’s median income, completing an approved homeownership class, and occupying the home as your primary residence.
• Discount points: Points are an upfront amount you pay to lower your mortgage rate. In most cases, a point costs 1% of your loan amount and can lower the rate by a fraction of a percent. 
• Appraisal guarantee: If an appraisal comes in lower than the purchase price, many lenders may not approve the loan, or the loan terms will change. However, those who work with a Better Mortgage real estate agent won’t have their loan details changed even if the appraisal comes in lower.

How to Apply for a Better Mortgage Loan

F🔜ollow these steps to apply for a mortgage loan with Better Mortgag൩e:

1. Select the “Get started” button on the lender’s website.
2. Fill in details such as the locations where you want to purchase a home and select whether you want to get pre-approved, find a real estate agent, or submit an application.
3. During the pre-qualification stage, you’ll be able to see the mortgage rates and terms you qualify for. Within 24 hours after submitting the required information, you should receive a pre-approval letter.

When y♍ou submit a full loan application, you’ll need proof of income, bank statements, and tax returns, among other documents. Look over Better Mortgage’s closing documents and complete any other requirements before closing on your home loan.

Customer Service

Customers can contact Bet꧋ter Mo🅷rtgage by the following methods: 

• Phone: 415-523-8837
• Email: hello@better.com

You can contact your loan officer ifꦑ you have any questions about your loan application.

Customer Satisfaction

In 2023, the Consumer Financial Protection Bureau received seven customer complaints about Better Mortgage. The company received a below-average score in the J.D. Powe𒁃r 2023 U.S. Mortgage Origination Satisfaction Study.

Account Management

Better Mortgage provide☂s a sec🐽ure online portal where applicants can track their loan process, view updates, and upload documents.

After closing, bꦦorrowers will be notified on how to make their first loan payment. You can manage your loan account online through the same portal, and you can use it to contact customer 💎service.

Alternative Lenders

The only way to find the right loan is to shop around with ܫmultiple lenders. Consider ꦡthe following lenders along with Better Mortgage.

Compar﷽e 🌞lenders based on criteria like the following: 

• APR: The APR (annual percentage rate) of a mortgage includes interest and fees. It's a more accurate comparison when looking at loan costs among mortgage lenders. 
• Down payment requirements: Down payment requirements will affect how much you need to pay upfront for a mortgage. Check this factor to help determine whether an offer is affordable. 
• Discounts: Points help lower your interest rate. Lenders usually charge 1% of your loan amount for each point you purchase. 
• Loan terms: Some lenders offer more than the usual 15- and 30-year terms to help borrowers afford monthly payments.
• Penalties: Most lenders don’t charge prepayment penalties, but it’s worth making sure your lender of choice doesn’t.

The Bottom Line

Better Mortgage’s main advantage is a fully online, streamlined pre-approval and application process. It’s a great fit for tech-savvy borrowers who are not interested in working with someone in person. Getting a pre-approval within 24 hours can be a great advantage, ꧙especially if you’re in a heated competition for a certain home.

Though Better Mortgage doesn't charge lender fees and is available nationwide, the downside is that it doesn’t offer USDA loans. Still, given its streamlined process and other advantages, it’s a lender worth considering if you’re interested in conventional, jumbo, or FHA loans.

Frequently Asked Questions (FAQs)

Is Better a Mortgage Company?

Yes, Better is a mortgage company specializing in conventional, jumbo, and VA mor🌠tgages, along with HELOCs.

Who Owns Better Mortgage?

Stockholders own Better Mortgage, which beca𝄹me a publicly traded company in 2023. Previous investors in Better included Softbank, Goldman Sachs, American Express, Ally, and Citi.

Is Better Mortgage a Reputable Company?

Better Mortgage is a reputable company, having originated $100 billion worth of mortgages and holding Better Business Bureau accreditation.  However, it earned a below-average customer satisfaction score in the J.D. Powers 2023 U.S. Mortgage Origination Satisfaction Study.

How We Review Mortgage Lenders

In March 2024, we conducted a consumer survey of 500 current or prospective homebuyers and mortgage borrowers. We asked them 41 questions about their home-buying and mortgage-shopping experience and learned what featuresღ and services were most important to them. Our research team analyzed the results, and this information fueled our list of 38 mortgage le꧒nders and 55 criteria for our rubric.

We then collected over 2,000 data points, surveying mortgage lenders and collecting data via websites, media contacts, and customer service between May 31 and June 28, 2024. To develop our list of the best mortgage lꦺenders, we weighted 36 of the 55 individual criteria, giving higher weight to those criteria that mean the most to borrowers. The score for each company’s overall star rating is a weighted average of those criteria in the following categories:

• Customer Experience: 48%
• Operational Features: 16% 
• Reputation: 14%
• Loan Types: 11%
• Loan Costs and Requirements: 11%

Read more about our process in our full 澳洲幸运5开奖号码历史查询:mortgage lender methodology.