Better Mortgage Review: Is It the Right Option for You?
Written by
Rudri Patel
Edited by
GOBankingRates Staff
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Better Mortgage is a digital-first lender that offers loans in all 50 states. Its loan options include conventional, fixed or adjustable rate, FHA, VA and jumbo. Better Mortgage also offers rate-and-term and cash-out refinance options as well as home equity loans and home equity lines of credit (HELOC). You can receive a verified approval in as little as one day. The lender doesn’t charge origination fees and you can complete the application and servicing process entirely online.
Better Mortgage also has Better Price Guarantee program that is beneficial to prospective homebuyers. If you find a more competitive loan offer, Better will match the rate or give you $100.
On the other hand, if you’re looking for a lender that offers in-person or live chat support, Better Mortgage might not be a good fit for you.
How the Better Mortgage Process Works
Applying for a home loan with Better Mortgage takes only a few minutes and you can do it online.
Application process
Better Mortgage’s application process is entirely online. You can submit your application, upload documents and track loan status all through its digital platform.
Speed of preapproval
Basic preapproval takes three minutes and involves a soft credit check. Receiving a verified approval involves a hard credit inquiry and can take up to 24 hours.
How documents are submitted
The following documents are required for the approval process:
- W-2 and 1099 forms from the past two years
- Recent pay stubs
- Bank statements and investment account summaries
- Federal income tax returns
- Proof of additional income source
These can be submitted only via online upload.
Level of customer support
Better Mortgage provides customer support primarily through phone and email. You can contact its support team at (415) 523-8837 for assistance.
Pros and Cons of Better Mortgage Guidelines
Better Mortgage offers a quick, digital application process, but has only a few branch locations across the country. Here are other pros and cons to consider:
Pros
- Fully online process
- Fast preapproval
- 24-hour complete approval option
- Competitive rates
Cons
- Branch locations in 10 states only
- Limited customer service access
- No USDA loans available
Better Mortgage Loan Options
Better Mortgage offers multiple loan options, including FHA, VHA, jumbo and even home equity loans. Here’s what each option offers:
Conventional loans
Better Mortgage offers a couple of conventional mortgages — fixed rate and adjustable rate. The fixed rate mortgage has the following features and requirements:
- 5% minimum down payment
- A 620 minimum score
- A debt-to-income ratio of 50% or less
- Best for: Homebuyers who prefer to stay in their home over a long period of time
FHA
A Federal Housing Administration (FHA) loan is backed by the government. Here are the key features:
- Easier credit qualification compared to other loans
- Down payments as low as 3.5%
- Mortgage insurance required
- Debt-to-income ratio of 43% or less required
- Best for: Homebuyers who have lower credit scores
VA
If you’re a current or former military member, you’re eligible for a Veterans Administration (VA) loan. Check out the highlights of this loan:
- No down payment required
- No private mortgage insurance required
- Competitive interest rates
- A minimum 620 score required
- Applicable only to primary residences
- Best for: Eligible veterans, active-duty service members and their families
Jumbo loans
Jumbo loans are available for larger properties. Their highlights and requirements include:
- A 10% minimum deposit requirement
- Ability to borrow up to $3 million based on different factors
- Debt-to-income ratio is 43% or lower
- Best for: People seeking high-value properties
Home Equity loans
A home equity loan is a refinance option suited for borrowers who require a lump sum for a specific purpose.
- You can access up to 90% of your home’s equity with a home equity loan.
- Home equity loans have variable interest rates.
- Home equity loans are best for primary residences, second homes and investment properties.
- Best for: People who are looking for a lump sum to fund large, one time expenses.
Better vs. Other Mortgage Lenders
How does Better stack up against other mortgage lenders?
| Feature | Better Mortgage | Wells Fargo | JPMorgan Chase | Rocket Mortgage |
|---|---|---|---|---|
| Apply Online | Yes | Yes | Yes | Yes |
| Fast Approval | Yes, up to one day | Prequalification takes one to three days, full approval may take up to 2 weeks | One to three days | Often within minutes |
| In-Person Help | No | Yes | Yes | No |
| Mobile App | No | Yes | Yes | Yes |
| Loan Types | Conventional, FHA, Jumbo, refinance, home equity loans and HELOCs | Standard loans, VA and FHA loans plus specialized loans, including a loan for first-time homebuyers | Conventional, FHA, VA, jumbo loans | Conventional, FHA, VA, Jumbo |
| Transparent fees | Yes | Fees vary by branch | Yes | Yes |
| Best For | Those who prefer to get a mortgage online | Customers who prefer in-person help | Digital-first users who also want the stability of a big bank | Customers who want a tech-savvy experience |
Who Should Consider a Better Mortgage?
If you’re looking for a quick digital application experience, Better Mortgage can be a good choice for you. If you’re interested in getting in-person support, you may want to consider other options.
Best for:
- Homebuyers who prefer an online experience
- Homebuyers looking to save money on fees
- Borrowers who want fast preapproval
Not ideal for:
- Rural buyers wanting USDA loans
- Borrowers who want in-person service
What Real Customers Say About Better
Take a look at ratings and reviews about Better Mortgage from Zillow and Better Business Bureau (BBB).
Zillow
Out of 875 reviews, Zillow rates Better Mortgage 4.38 out of 5 stars. Reviews are generally positive with one customer saying, “I love working with this lender. Their system is some of the best out there which makes all interactions very smooth. They are also very responsive and highly competitive.” Another customer says, “Very good experience with Better. From beginning to end I liked the online steps.”
Better Business Bureau
Better has been accredited with the BBB since 2018 and has a rating of A. The BBB shows that the company has received 60 complaints.
FAQs
- Is Better Mortgage a legit mortgage company?
- Yes. Better Mortgage has been in business for 22 years and is accredited by the Better Business Bureau (BBB). It has an A rating.
- How fast can I get preapproved?
- A basic approval takes three minutes. A verified approval takes longer and involves uploading financial documents. It usually takes 24 hours.
- What credit score do I need for a Better Mortgage?
- For conventional loans, you need a credit score of 620 or more. For FHA loans, you need a credit score of 580 or more.
- Can I refinance through Better?
- Yes, Better offers a cash-out refinance option, a rate-and-term refinance and a no-closing cost refinance.
- Does Better Mortgage charge high fees?
- Better doesn't charge an origination fee, and closing costs range from $1,500 to $5,000.
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- Zillow "Better Mortgage Corporation"
- Better Business Bureau "Better.com"
