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About Better Mortgage Reviews
Better Mortgage (NMLS #330511) offers an online mortgage lending program in all 50 states. Borrowers can get preapproval from the company in as little as three minutes. The lender doesn’t charge any application, origination or underwriting fees, and it has a referral discount program for its customers.
Pros & Cons
- No origination fees
- 100% online application
- Matches competitor offers
- On-time closing guarantee
- No USDA loans
- No construction loans
Better specializes in a digital mortgage application process with no origination, application or underwriting fees. You can see a personalized quote for a conventional, VA or FHA loan in seconds and get preapproved in just a few minutes. There is a 620 minimum credit score requirement for conventional mortgages.
Better Mortgage came out on top with the rates which we could afford as well as discounts. They didn’t have any kind of origination fees. … The entire process was very smooth. The...Read full review
The lending process at Better Mortgage was very well-organized and really perfect for my needs. The agent was very supportive. Whenever I had questions, she got back to me quickly...Read full review
Our editors’ take on Better Mortgage
Based on our customer reviews and nationwide mortgage data, we recommend Better Mortgage for homebuyers who want a competitive interest rate and streamlined application process. Many reviewers mentioned they received incentives in the closing, lowering the overall cost of their mortgage process, but Better does not advertise these deals on its site.
We don’t recommend Better for buyers who need USDA loans or loans for modular homes or multi-family homes, since Better will not be able to provide these types of funding. Additionally, Better’s credit score requirement of 620 can make it harder for some home shoppers to qualify.
How we rated Better Mortgage
We rated Better Mortgage excellent for its rates, fees and application process. Our mortgage data also shows that Better has had lower rates than the national average between 2019 and 2021.
For its requirements, we gave it a score of fair because several reviewers had issues if they were self-employed or had complicated financial histories.
Better Mortgage publishes its starting mortgage rates for 15-year, 20-year and 30-year conventional loans on its website. For rates based on your individual situation, contact Better Mortgage for a customized quote.
Over the past few years, Better Mortgage’s rates for home purchases have trended slightly lower than the national average. Its average rate was 0.26% lower than the U.S. average in 2021; in 2020 it was 0.21% lower, and in 2019 it was 0.26% lower.
Reviewers said they found the best rate with Better. “I got a better deal with Better Mortgage in terms of mortgage rate,” said a reviewer from Missouri. “I got the best interest rate with the competitive offer that I got.”
Another customer in Florida posted similar sentiments: “We got a low-interest rate, lower than anybody else was offering.”
Disclosures from Better Mortgage indicate that its average rate for a 30-year fixed-rate mortgage in 2021 was 2.86%, which was 0.1% lower than the national average reported by Freddie Mac (2.96%). Remember to keep in mind the difference between interest rate and APR — APR takes into account additional costs and fees as well as the interest rate.
Better Mortgage average home purchase rate vs. national average
|Year||Difference from national average|
Application process: Excellent
You can complete Better Mortgage’s application 100% online. You can start the preapproval process by answering a few short questions and allowing the lender to conduct a soft credit check (which won’t impact your credit score).
Be prepared to provide information about your income and assets — Better Mortgage uses these details to determine how much you can borrow. You also need to upload financial documentation (like W-2s and bank statements).
Once the lender has all the necessary documents, you could receive a preapproval letter in as few as three minutes. Better Mortgage uses online tools to match you with available mortgage loan options.
Benjamin from New Jersey said, “The design of the website made it really intuitive. ...I really enjoyed working with them because the interface that they have is task-based. It empowered me to really move through the process and understand the pieces that I needed to take care of, and it worked smoothly.”
Better Mortgage initially services the loans it originates, but it may sell your loan to an investor in the secondary mortgage market at some point — which means another company would own and service your loan moving forward. The loan terms, like interest rate and term length, won’t change with the new servicer.
Better Mortgage application features
|Mobile document upload|
|Publishes minimum rate on website|
|Rate lock||30 to 75 days|
|Pre-qualification (no hard credit pull)|
|Certified approval letter|
Loan types: Good
Better Mortgage offers a variety of mortgage products online, including conventional loans, jumbo loans, FHA loans and VA loans. You can also refinance your existing home loan with Better Mortgage, whether you’re aiming to cash out or get a lower interest rate.
Demand for home purchase loans from Better Mortgage grew significantly in 2021, with 52,363 total home purchase loan applications (versus 15,667 in 2020 and 8,803 in 2019). Of those, 21,967 (about 42%) were approved and closed in 2021, and only 3,441 (6.6%) applications were denied.
Lukas from Indiana is in the military and wanted a VA loan because interest rates are usually lower. “As I got all the quotes back from different VA lenders and banks, Better Mortgage had the best interest rate and offered me lower than 20% down with a conventional loan. So, it's kind a no-brainer for me to use that,” they said.
Loan applications for home purchases only by year
|Home purchase applications||52,363||15,667||8,803|
|Home purchase loans closed||21,967||6,474||3,771|
|Home purchase applications denied||3,441||2,689||917|
|Home purchase preapprovals denied||0||0||0|
Both conventional and government-backed loans have their own sets of borrower requirements. Typically, conventional loans require a higher credit score than government-backed mortgages, but not always.
Better Mortgage has a minimum credit score requirement of 580 for FHA and VA loans and a minimum credit score of 620 for conventional loans, which is in line with the industry norm.
Sandra, a reviewer from California is self-employed and used Better Mortgage for a cash-out refinance. They said, “Everybody was great. It's just that they have to follow protocol. I never imagined it was this difficult for a self-employed to apply for loans.”
Several other self-employed buyers also found the mortgage process longer and more difficult because of their income.
Derrick of Illinois had several issues with getting approved for a loan, despite having a high credit score and 15-year employment history with one company. After submitting the same form five times the company ultimately said it would not move forward with the loan. “Their stated reason: I travel too much for work. After 4 months, and close to $600 spent I still have no mortgage and no legitimate explanation as to why,” they said.
National mortgage requirements by type
Cost and fees: Excellent
Better Mortgage doesn’t charge any lender fees — there is no application fee, origination fee, processing fee or underwriting fee. Keep in mind you may still owe certain upfront costs when buying a home or refinancing a home loan, such as a down payment, third-party fees (e.g., appraisal fee, title insurance) or an escrow deposit for insurance and taxes.
One Pennsylvania reviewer said, “Better calculated that the value of the home met a certain condition. So, they offered me to waive the appraisal. I took that because otherwise, the appraisal would have cost me an extra $500.”
Better Mortgage also offers a “Better Price Guarantee,” promising to match a competitor’s offer and credit $100 toward closing costs. You could also save an additional $2,000 in closing costs when you use both Better Mortgage and a Better Real Estate agent to buy your home.
Compare Better Mortgage to other lenders
|Better Mortgage||Homefinity||Rocket Mortgage|
|# of reviews||387||110||1,191|
|Purchase options||Conventional, jumbo and FHA and VA loans||Conventional, FHA and VA loans||Conventional, jumbo, FHA and VA loans|
|Refinancing options||Cash-out, rate and term||Cash-out, rate and term||Cash-out, rate and term|
|Minimum credit score||580 to 620||580 to 620||580 for government-backed loans; 620 for conventional|
|Read Reviews||Read Reviews||Read Reviews|
Better Mortgage FAQ
How does Better Mortgage work?
The initial application process takes place online. You start by selecting a goal (buy, refinance or sell), and you can obtain preapproval for a loan in as few as three minutes. This shows you the total amount you can borrow and what your monthly payments will be. In the case of a refinance, you can also see how much the new loan can save you.
Is Better Mortgage legit?
Better Mortgage is a reputable lender. If you have solid borrower qualifications and want to streamline the mortgage application process, you’ll likely benefit from Better’s online loan-matching and approval system.
While it can’t offer closing services online, Better backs up its digital experience with personalized customer support to guide you through the process. It doesn’t charge lender fees, and its loan officers don’t depend on commissions — so they have less incentive to oversell you.
Where is Better Mortgage available?
Better Mortgage loans are available in all 50 states and Washington, D.C. It's headquartered in New York, with three additional office locations in the U.S., but there aren't any in-person branch locations as of publishing.
ConsumerAffairs has collected 387 reviews and 240 ratings.
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Reviewed May 2, 2023
I got Better Mortgage from Credit Karma. I liked the interest rate that they were offering so I did the thing there. The reason why I chose Better was because it wasn't just better at first. I like their website and it made the task easier. All I had to do was confirm, read it through PDF, download the PDF then sign that I read it. I really liked that. The people talking were easy to contact as well. The interest rates that they were offering were pretty low compared to other places. They were very helpful with people that don't know much. They're understanding and they don't get mad. They're very calm.
The first person that helped me find a rate was Adam and he was cool. He explained a lot about the rates and how they're affected. There wasn't really much he could have done because I already knew the house that I wanted and I already knew how much it was gonna cost. The second person was Lisa and she was the loan coordinator. She helped me finish everything up. She bore with me all the way. Since it was my first time, I didn't know anything about buying a house or just managing it. I had so many questions. I was so scared to move forward but she gave me some information about everything going through. There was one more person at the end of the process.
The whole process took three months. It worked out because the person I was buying the house from was very close. It was easy to contact him and I could get a lot of stuff from him. I had to get some lead disclosures and he did that in a week. Everything was pretty smooth because of him. Also, there were people like Lisa. I like Better. I only wish there were fewer phone calls. I was in the middle of school and there was a lot of phone calls asking the same thing such as emails and phone numbers. It was mostly about the stuff about comparing my identity. That was annoying. It was those little things that kept on adding up. It was just an excessive amount of calls.
Reviewed March 11, 2023
I like that Better Mortgage doesn't sell their loans to Mr. Cooper. The process was very easy with regard to the application. I had one mortgage lender assigned to me who was registered with the State of California. He did not end up being my loan processor later on. He no longer worked for Better Mortgage during the time of my loan. I was provided a new loan processor who was named Barbara. She and her assistant were excellent. If she needed anything, she would put the note into the portal and it would notify me. I could easily go back in and complete those tasks. There's a task bar where tasks are completed.
If I had questions, I could call the number that would reach my processor in person. If she was not available, then it would go to a receptionist. The people who answer the phone are very knowledgeable with regard to the processes of the loan. They could answer many questions that I had if they were general questions. But if they were specific, something that required only a licensed person to respond to, then I would have to wait for Barbara to respond. What I also like about Better Mortgage is that they have their own people who were answering questions on the online chat. The communication is always there. There's always somebody on to answer a question.
The only hiccup we had was a rate change. Once we had already selected a rate and locked it in, we were then told that we couldn't select the rate because my debt-to-income ratio wouldn't allow for it. We had to go back and select a different rate which was not as lucrative as the first. It doesn't provide as big of a credit as the first did. But I like that there was a term in that we could pick a slightly higher rate and get a little bit of a credit towards our closing. Because we bought in California, we had to put 5% down. Putting that amount of money down on a home in California is a lot of money. We took a bit of a credit so that it could help offset some of those cost which was so imperative to us to be able to offset that cost a little bit on moving in. We plan on refinancing with Better Mortgage in the future when rates are a little bit lower. We will be second time customers, hopefully, within the year.
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Reviewed March 7, 2023
I had applied online through Better Mortgage's website for a preapproval, and somebody had reached out the next day and got me the full approval, so we could start looking at houses. The rest was history from there. I kept them updated with any offers I was interested in putting in. Then we finally did put an offer in. It got accepted, and we processed the loan from there. Almost all of our communication was done via the online portal or email, and that worked better for me because during normal business hours, I’m in a lot of mediums, so it's hard for me to communicate via phone. Through email, they were very responsive and things were done in a timely fashion.
My Realtor wanted me to use a local place, specifically, one of the credit unions locally because it makes things a little bit cleaner and better communication generally. I gave those credit unions a chance, but three of them all told me the same thing that they couldn't even come close to being competitive in regards to the rate and closing costs that Better was offering me. So, that being said, I was pretty pleased knowing that I was getting a fair deal when others are telling me they couldn't match it. So, that was good. Overall, my experience was great. It was easy. We didn't really have any hiccups. It wasn't complicated. We closed on time. There's nothing I could ask for to be better.
Better Mortgage was modernized. Having the portal was super cool and easy to use. There was a lot of transparency. In previous mortgages I've done, it was like pulling teeth to get them to give you rate information or closing cost breakdowns until you got to the point where it's almost too late to change your mind. Where on the online portal that Better has, you can change your rate, see what the loan fees are gonna change. They're very transparent along the entire process, which was new for me. So, I would tell my friends that it would be a very wise choice to go that route for transparency, simplicity, and savings.
Reviewed Feb. 24, 2023
I really enjoyed that we worked digitally, where there were communications through the portal. So that I didn't have to go about scheduling calls or take time out of my day to go meet with somebody. It was cool, and everything was pretty transparent. There was one time that I had questions and the team was pretty responsive. But everything in the portal is pretty self-explanatory. I know where to go get things, and then I would upload them onto the website. If there was some sort of error, they just told me what the error was and what was the cause of the delay. So I submitted a note and let them know. Then I heard back through an email type communication. I was really good with that process.
When I submitted my inquiry to Better Mortgage, a rep reached out and explained to me the process and how that works. He also explained to me about the portal. He qualified me and got me through 10% of the way. Once I got logged in, I was informed through the portal that I had a new rep. There were big indicators when something was new, or where to click or go. The second rep got me about 50% of the way. Then there was a third rep that was the last person who helped me get through the process. But I didn't have the need to want to reach out to have somebody hold my hand and walk me through the process. I was very capable and willing to go through the steps.
On closing day, we got a mobile notary that came out to us. Better Mortgage scheduled this person to come out. But it was still convenient. When the guy showed up, he had a stack of documents. We didn't have to sign every page but there was a lot of documentation. It would be better if we could use companies like DocuSign. But the guy was really good. He brought a copy for us to keep and then the copy that we signed that he ended up taking with him. I really enjoyed the process to where I would highly recommend Better Mortgage. Also, their rate was super competitive.
Reviewed Jan. 25, 2023
Better Mortgage could do a quote or an estimate for how much I could get approved for in three minutes online, which was a big thing. I didn't have to wait and I could just put in my information and find out if I was pre-qualified myself. I was and I moved forward. Also, they outdid my credit union by a ton. They were able to do the closing 14 days sooner than a typical FHA loan, which was really cool. It moved very quickly and I really liked the task dashboard that I had so I could check out all the time and see if there was any other information that they needed. I didn't have to search through emails and voicemails, call people, and go places. I could just do it all right from my computer or my phone and that part was really nice.
The only thing that was messy is that there are different people for each step of the process and there was no real quarterback. I would just get texts from a random phone number telling me that, "This was so and so from Better Mortgage," and they're taking over. I would go to talk to them and they'd tell me my process has moved on and I need to talk to this person so I'd have to try to hunt that person down. There was Christian who was kind, but never responded to anything that I said ever. There were other times where I just called the 855 number, tell them what I need, and they would route me to whoever it was supposed to be. But the rep I worked with at the very beginning was super attentive and great. Then, in the actual closing process, I was connected with a lady named Bree and she was phenomenal. She was available through text, phone call, and email.
But at the end, when we were signing our loan papers, we came across who our loan would be sold and everything that I signed said Flagstar Bank on it. I was waiting for the packet to come in the mail and I got something from The Money Source. I called or emailed and they said they don't know where I got the idea that Flagstar was gonna be my bank. They asked if I could send them documentation of that. But I was not gonna go back and forth. If they're telling me The Money Source is it, then that's that. I paid The Money Source but then last week, I got paperwork from Flagstar that they're taking over our loan. There was some kind of fallout or miscommunication there.
Reviewed May 29, 2023
My rep Adam listened very well and analyzed my needs. He gave me a custom solution for me 'cause my situation is different. I recommend Better Mortgage.
Reviewed May 25, 2023
I checked with a few other mortgage and loan providers but they didn't offer a close rate to what Better Mortgage offered me. At first, the rep from Better Mortgage was pretty responsive and answered all my questions. But after I accepted it, it was hard to communicate with that person. I was able to follow everything online but it was hard to ask my questions along the way or it would take a day to answer a question. The communication along the way can be improved but overall, my experience was really smooth and nice. I really liked it and I would recommend them to my friends.
Reviewed May 23, 2023
The rep was very helpful. He was following up at every step and kept us posted. Even when the system wasn't working well, he was able to go to the system and fix something. I like that the communication was straightforward, everything was transparent and Better Mortgage has a good online backing. The tasks that had to be done were organized and they got done perfectly. Better Mortgage also gave us the option to use our bank. It was very simple to register and pay. However, there were a couple of instances where the builder’s agent provided quotes, but Better was not able to accept that because of the format. The builder’s agent said that was the only format they could provide.
Reviewed May 17, 2023
They walked me through everything that they needed. They described everything that they needed from me in detail, so it was super easy for me to get. It was a very easy process. They were very helpful and informative. They were always there when I needed someone to talk to about any questions that I have. If I reached out via phone call or email, it was a very quick response. When I would reach out, they would clarify and made it super easy.
Reviewed May 17, 2023
I liked the ease of the online process with Better Mortgage. The process was quick and expedient online. I was provided the resources and information I needed to make an informed decision. I could reach out to their customer service much easier than a couple of the other banks that I had reached out to throughout the process as well. The process took two to three months. The biggest delay was me. My family and I were traveling to visit the homes and make an offer on the house. That aside, the rate I got was competitive with any of the other mortgage applications I had started, but not finished for that reason. I would recommend Better Mortgage.
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