Better Mortgage Review 2019
The Smart Investor reviews are unbiased, and reflect the views of our editorial staff. We’ve collected the information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.
Better – About The Lender
Better Mortgage is based in Manhattan, New York with 2 offices and a total of 200 employees. Since their opening, they have funded $30 million from 17+ investors and do business in 18 states and DC. Their main focus is still solely on making the process easier and more self-efficient to get pre-approved and generally apply for a mortgage online.
This company still seems to be an up and coming business that has some flaws in its customer service and meeting deadlines but since this company was based off of a technological point of view, the system seems to be doing exactly what it was supposed to do, which is, make the pre-approval and application process smooth, uploading documents easy, and have all the tools of looking for a mortgage right on.
Website – Extremely informative website with all the tools you will need to learn about mortgages, products, rates, terms, the process of the loan, documents needed, and anything else you will need to start a brand-new loan application.
Low Fees – NO origination or broker fees, including any other lender fees, such as application, credit, etc
Competitive rates – The rates for the programs they offer are very competitive compared to the market.
Down Payment- Better offers lower down payment products for borrowers that don’t have a lot of upfront money.
Poor communication and customer service – Our experience with better customer service was bad.
Limited Types Of Loans – Better doesn’t offer government loans, such as FHA, VA, or USDA, nor do they offer construction, commercial, home equity lines of credit, second mortgages, or Texas cash-out refinances. They also do not offer loans for the purchase of a foreclosure or bank-owned property.
Turn – Longer than normal loan turn times from start to finish of the process.
Better Mortgage Products, Fees, and Conditions
Better Mortgage offers fixed-rate loans ranging from 15 to 30 years and adjustable rate (ARM) loans ranging from 5 to 10 years. You can either choose from Conventional or Jumbo because those are the only products they allow at this time.
Better Mortgage has as little as 3% down payment for Conventional loans and 10% down payment for Jumbo loans with no mortgage insurance. Their minimum credit score is 620 but that may change depending on the type of loan you are getting and the amount you can afford. This also may change the pricing on your loan as well. This flexibility is great for people who don’t have a lot of money to put down, especially if they are first time homebuyers.
Better Mortgage Process – How To Get a Loan
The loan process starts exactly as it says on their website, “Online”. You start by clicking on “Rates” at the top of the page and then you will select your type of mortgage, “Purchase” or “Refinance”, after that, you will need to click on “Get Started” at the top of the right corner. You will then be asked a series of questions in which your application or pre-approval then begins.
Once your application has been officially completed, you will then be contacted by a loan originator who will pull your credit to see what loan terms you qualify for. Once you have completed that phone call, you will be asked to send in specific documentation, which on their website, (if the LO has not already told you) they have a section under “Resources”, at the bottom of the page, you will click on “Getting your Docs in a Row” which will give you a specific list of documentation to send in depending on your employment, asset, and other debt obligations you may or may not have.
From there you should have a smooth ride to the closing table unless you decide to negotiate. Betters average loan turn times are between 30 and 40 days with an average of 60-day rate lock.
Should You Consider Better Mortgage?
Better Mortgage is perfect for a borrower that has little time to be on the phone and that has access to a computer. Their loan products are for borrowers that have average to above average credit scores, no liability delinquencies, with reasonable income and assets. Better doesn’t charge any lender fees, they do offer $1,000 cash offer if they are unable to beat any competitor’s rate or within $1,000 of their closing cost fees.
However, make sure you read the fine print on this offer because there are contingencies, including the fact that they rescind or modify this offer at any time they see fit with or without prior notice. All-in-all, this mortgage company has a great website and full proof system but might need to work out a couple of kinks with their communication skills.