Better Mortgage review 2024

Better Mortgage is an online lender that offers common mortgage programs such as conventional, VA, FHA, and jumbo loans in all 50 states, plus home equity products if you’re looking to borrow money against your home’s value. It boasts a quick mortgage application process to help get you to the closing table faster than the average lender.

Whether you’re applying for a new loan, refinancing an existing mortgage, or tapping your home equity, Better’s online pre-approval process and digital mortgage application are quick and easy. Here’s what to know about the lender.

Best for: Speedy closings

Better Mortgage is a fully digital lender, so it focuses on providing an end-to-end speedy experience. You can get an initial mortgage pre-approval within three minutes. Once you lock in a rate with Better, you’ll get a commitment letter within 24 hours. The underwriting part is quick, too. Better says it can close home loans in 10 to 15 days, which is faster than the industry average. 

Methodology 

To determine the best mortgage companies, Fox Money evaluated lenders based on several different categories: rates and fees, reputation, eligibility, efficiency, customer experience, and discounts and perks. We also looked at the types of loans offered by each lender for research purposes only, they did not factor into the overall score. We assigned a score out of five stars to each lender based on our findings. 

Learn more about how Fox Money rates lenders by checking out Mortgage Lender Rating Methodology. 

Better Mortgage: Pros and cons

What to consider before applying 

Before applying for a mortgage loan, it’s a good idea to review your finances. Making key improvements can help you qualify for the best interest rates. Here are a few steps you can take to improve your application:

• Check your credit history: Your credit score is based on the information in your credit reports, so you’ll want to make sure the information is accurate. Request a credit report from the three major credit bureaus at AnnualCreditReport.com. You can dispute any errors with the credit bureaus directly. 
• Improve your debt-to-income ratio (DTI): Paying off debt, especially high-interest balances, puts more room in your budget for a mortgage payment. DTI is the ratio comparing your monthly debt payments to your pre-tax monthly income, so picking up a part-time job or lowering your debt will improve your DTI. 
• Increase your down payment: Making a larger down payment means you’ll need to borrow less money, which could land you a better interest rate and help you avoid private mortgage insurance. Consider the largest amount you can put down without depleting your cash reserves.

How to apply for a loan with Better Mortgage 

Here’s what to expect when you apply for a home loan with Better Mortgage:

1. Gather your information: Better Mortgage will need to verify your income and the funds for your down payment, so gather the documents you need upfront. These may include recent pay stubs, your two most recent W-2 forms, tax returns, and statements for your bank and retirement accounts.
2. Get pre-approved: You can submit an initial pre-approval on Better’s website to check your loan offers. The lender says it uses a soft credit pull, which won’t impact your credit, and gives you an answer within three minutes. If you qualify, you’ll receive a letter showing the maximum amount you can borrow and your estimated interest rate.
3. Make an offer and sign a purchase agreement: Once you find the home you want to buy, you’ll submit an offer to the seller. Include your pre-approval letter, which tells the seller you’re qualified to borrow the amount you’re offering. If the seller accepts your offer, you’ll go under contract and sign a purchase agreement.
4. Complete the application: Now you’ll finish your mortgage application with Better Mortgage and lock in an interest rate. Once you submit your financial documents, the lender says it can give you a commitment letter within 24 hours. The document should list your interest rate and closing costs.
5. Go through underwriting: During the underwriting process, Better will order a home appraisal, request a title search, and verify your employment status. This process may take around 10 to 15 days with Better Mortgage. When it’s done, you’ll close on the loan. 

How to qualify for a loan with Better Mortgage 

The requirements for a Better Mortgage home loan are consistent with most lenders. Here are the basic requirements you’ll need to meet: 

How to refinance with Better Mortgage 

If you’re looking to refinance your mortgage, Better offers the following options:

• Cash-out refinance: With a cash-out refinance, you borrow more than you currently owe, pay off the original loan, and keep the difference in cash. This could be a good option if you need to borrow money for debt consolidation, renovations, or other expenses, but your monthly payments will likely increase.
• Rate-and-term refinance: A rate-and-term refinance allows you to get a new mortgage with a different rate, different term, or both. Homeowners often use a rate-and-term refinance when they qualify for a lower interest rate, need to change the loan term, or want to switch to a new loan program.

Because refinancing involves taking out a new mortgage, the process is similar to when you first purchased the home. You’ll still want to get rate quotes from multiple lenders. Once you find a lender you want to work with, submit a mortgage application and go through the underwriting process. 

How Better Mortgage compares 

If you need to close on a home quickly, Better Mortgage might be the lender for you. It boasts speedy pre-approval and underwriting times on its website, due to its streamlined online process. The downside is that if you want in-person help, you’ll have to look elsewhere. Here’s how Better Mor

Better Mortgage FAQ 

How competitive are Better Mortgage’s rates?

Better Mortgage’s interest rates are competitive compared to other large, national lenders. In 2022, Better’s rates were on par with the average prime offer rate, or APOR. The APOR is a benchmark rate that reflects what banks are offering well-qualified buyers in the current market. For a first-lien mortgage, a rate that’s 1.5 or more percentage points higher than the APOR is considered “higher-cost.” 

What types of loans does Better Mortgage offer?

Better Mortgage offers conventional loans, FHA loans, VA loans, and jumbo loans. You can also take out home equity lines of credit (HELOCs) and home equity loans. 

How is Better Mortgage’s customer service rated?

Better Mortgage earned a below-average score in J.D. Power’s 2023 Mortgage Origination Satisfaction Study. But the lender has an excellent Trustpilot score of 4.3/5 stars based on more than 1,700 reviews, and a strong 4.32/5 stars with the Better Business Bureau.

Are there any hidden fees with Better Mortgage mortgages?

No. Better Mortgage doesn’t charge origination fees, and it lists all of the third-party expenses you might pay at closing on its website.

How easy is it to apply for a mortgage with Better Mortgage?

The mortgage application process is quick and easy with Better Mortgage. The lender says it provides an initial pre-approval within three minutes. Once you sign a purchase agreement with the seller, you can lock a rate and receive a commitment letter within 24 hours. The underwriting process may take as little as 10 to 15 days.