Better Review

ByNadav ShemerApr. 07, 2021

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In a Nutshell

Better Mortgage Corporation is a direct lender that uses technology to provide a fast and transparent digital mortgage experience backed by customer support. It was founded in 2014 and is backed by big-name investors including Citi, Goldman Sachs, Kleiner Perkins, and American Express. To date, it has originated more than $2 billion in conventional mortgage loans.

pros

  • Almost entirely digital process
  • Algorithm reduces importance of credit score
  • No origination or lender fees

cons

  • Not available in all 50 states
  • No government-backed loans
  • Better may transfer your loan to another service provider

Visit Better

Better Mortgage at a Glance 


Direct lender or marketplace?Direct
Loan types:

Purchase, refinance

Featured LoansConventional
Repayment terms:

 15-30 years, 5/1, 7/1, or 10/1 ARM

Minimum Down Payment:

 3%

Minimum Credit Score:  620+
Suitable for: Minority homebuyers frozen out by traditional lenders

Overview

Better Mortgage is a lender for the digital age. It’s one thing to offer online applications; Better Mortgage goes a step farther, utilizing a proprietary algorithm to quickly assess and approve home buyers from a diverse range of backgrounds. Thanks to its mostly digital platform, Better is able to save on overheads. This allows it to charge borrowers no origination fees, no lenders fees, and no commissions. This platform really is digital from start to finish. You can log in anytime to see where you are in the process and what can be done to keep things moving.

Suitable For?

All types of borrowers that meet the minimum credit score requirement stand to benefit from Better’s streamlined online mortgage process. However, the group that stands to benefit most are minority borrowers. As Fortune noted in their review, Better’s customer base is dominated by groups like single women, minorities, and LGBT couples who have traditionally found it difficult to get approved by mortgage lenders.

Types of Loans/Products

Better Mortgage offers conforming loans only, with a choice of fixed or adjustable rate mortgages. In addition to conventional mortgages, it offers a wide range of other products and benefits.

Here are the other products:

  • Better Real Estate. Matches you with a trusted real estate agent. Tell Better what you’re looking for, then it will match you with a specialist and pass along the savings to you (up to $2,000 off closing costs).
  • Better Settlement Services. Once you’re far enough in the process to think about third-party closing costs, Better can help match you with affordable third-party services. Its nationwide notary network can meet you wherever you’d like.
  • Better Cover. Whether you’re buying or refinancing, all Better loans need homeowner insurance. Fortunately, Better can match you with the right carrier in seconds, using the information you already provided in your application. You don’t have to do anything except decide whether to accept.

The Application Process

Better's application process is entirely online and takes only about 3 minutes for house hunters who are just looking for basic pre-approval, although the website indicates that it takes up to 2 hours if you are shopping for a home and 30 minutes if you've found a specific property to buy. The application for refinancing takes just 3 minutes.

Once you’ve answered basic questions about your financial situation, home equity, or prospective property, you’ll be sent an initial loan estimate and connected with a dedicated loan officer for more in-depth support along the way. Once you’ve carried out a list of tasks which you’ll receive with your loan estimate, you’ll be able to request to lock in a rate. Better usually closes on a mortgage loan within 3-6 weeks after rate lock, often 10 days faster than the industry average.

Rates and Terms

Better’s repayment terms are 15, 20, or 30 years, with 5/1, 7/1, and 10/1 options for adjustable rate loans. Since all of Better’s loans have no prepayment penalties, you can pay the loan back sooner than the end of the repayment term if you wish.

Average closing costs are $3,598 in third-party fees for a purchase loan, or $1,824 in third-party fees for a refinance loan.

Better’s rates are extremely competitive. Most of all, it offers real-time, transparent rates on its website, without having to make a formal request. 

Help & Support

Better offers a single, dedicated loan officer to every applicant to help you through the loan process. In general, you can get in touch with Better’s customer support by email at hello@better.com, via phone, or schedule a convenient time for a representative to call you back using the online form. Both your loan officer and general customer support are available from 9am to 9pm ET Monday-Thursday, 9am to 6pm ET on Friday, 12pm to 4pm ET on Saturdays, and 12pm to 6pm ET on Sundays.

Better offers plenty of information on the website with an easy to find and easy to navigate FAQ section and lots of educational resources.

Ph: (415) 523-8837

Summary

Better is one of a handful of tech-driven digital mortgage lenders disrupting the traditional mortgage industry. With a speedy loan approval process, competitive APRs, and no origination/lender fees, it’s an option worth considering if you’re in the market for a loan. Although it imposes the same minimum 620 credit score characteristic of most lenders, its algorithm makes it more favorable to people in the 620-700 range than its rivals.

FAQ

Q: Will Better service my mortgage? 

A: Yes, but not necessarily for the entire lifetime of the loan. At some point, Better might transfer your loan to a permanent servicer. It has a large roster of servicers and mortgage investors, including major US banks, government-sponsored entities, and specialized servicing firms. Better will notify you if it transfers your loan to a third party.

Q: Does Better offer commercial or construction loans? 

A: No, there are no commercial construction loans at this time. 

Physical Address

Better Mortgage Corporation

459 Broadway FL 5,

New York, NY 10013

Visit Better

Better customer testimonials

ExcellentReviews 285
TrustPilot is the world’s most powerful review platform, free and open to all.
Excellent
78%
Great
7%
Average
6%
Poor
1%
Bad
8%
  • author
    Suzanna S.
    Mar 29, 2021
    Better.com could not be better

    The process to obtain a mortgage was so smooth and seamless. The online application was intuitive and easy use; you’ll be guided at every stage so you know where you stand and what you need to to next. I liked receiving email updates reminding me of the tasks I needed to complete to get my loan underwritten. I want to give a special shoutout to Laura Bell for her unflagging enthusiasm and support in buying my first home and to my loan processor Leslie Estelle. They both immediately put me at ease and I felt very comfortable during the entire process. I wouldn’t hesitate to recommend Better to my friends and colleagues. In fact, I already have.

    ...

  • author
    Aaron Lux
    a day ago
    BE WARNED BEFORE BETTING ON BETTER

    BE WARNED: BE VERY CAREFUL USING BETTER FOR YOUR LOAN APPLICATIONS. Before applying for a loan with Better.com, I had 770+ credit score, now, over a month later my credit score is 710, I was denied the mortage, I might lose the home, my personal financial information appears to be compromised, and there are more questions than answers. This may possibly even be a case of discrimination. Why else would someone like me, with a 770+ credit score, $150k+ income, $100k in the bank, and no dependents be declines a simple straight forward $450k home loan from Better.com? They kept trying to find issues with my finances and giving false reasons for declining my loan. Along with this they continually change the parameters of the information they were seeking, coming up with fictional reasons for wanting more of my personal information. I'd been overseas for 18 months and I come back to The States to purchase a home and restart my life and this company makes me pay money and spend time without anything to show for it. Wish they'd look for solutions instead of problems... This company was negligent at best, and nefarious at worst. It was a very disheartening experience. Giving two stars instead of one because I don't think they acted maliciously, though I am still investigating and will be sure to know how to point to if anything happens to my personal information or I get any phishing/spam calls in the near future. I truly wanted to support Better and be a client, as they seemed like a great company in the beginning. They offered a good rate, an easy Pre-Qualification Letter, friendly customer support and an easy to use website. That all slowly began to change as my costs ($550 appraisal fee, $3,000 homeowners insurance, $10,000 earnest money deposit, county filing fees, etc.) began piling up, and questions from Better began to become more abstract and illogical. BOTTOM LINE: My credit score was significantly damaged, my escrow was jeopardized, my financial information was compromised, and my loan was refused based on unspecified non justified reasons. There has to be others out there that had this experience. If you think Better may have acted inappropriately with you please contact me directly and let me know your experience so we can organize all of the facts. My e mail is aaron at ride dot co. Thank you and good luck.

    ...

  • author
    Patricia Thomas
    Apr 04, 2021
    Poor service- disreputable practices

    Attempted a cash out refi. Appraiser significantly undervalued property. Showed listing of comparable sales to dispute. Received brush off. I have 3 sheets of recent sales from a reputable local agent that shows sales significantly higher. In addition, many upgrades premium entry door, Anderson windows, new furnace, newer kitchen cabinets lifetime warranty, custom stone patio, new siding, new roof, new bathroom. Non of these conditions were evaluated. DON'T USE THIS COMPANY!

    ...

  • author
    EG
    Apr 01, 2021
    Terrible experience. RSU income? Read this

    I had the worst experience I ever had refinancing a mortgage with Better.com. First the whole automated site may work unless you actually need to talk to anyone. They constantly ping you with "tasks" many times asking for the same information. I didn't find any of the actual people I worked with knowledgeable and they have the most inept and incompetent underwriting department you would have the displeasure of working with. But the main issue was how they qualify RSU income. First they told me they don't qualify RSU as income. I complained and fought with them and they didn't budge. Then I found an actual page on their own site saying they do qualify the income! Once I sent them their own page they relented and qualified the income. The biggest joke came when they described how they qualified. They used the least amount of stock vested in a 3 year period and randomly chose a stock price anywhere from the previous 2 years. Anyone working in a tech company knows they typically grant RSU's yearly that vest in a 4 year cycle which means in year 3 your stocks would be at or near the lowest level because that's your furthest vest date. Long story short they ended up qualifying .18% of my total RSU grant! That's not a typo. Please stay far away from this company and find a company that's actually qualified to do their job.

    ...

  • author
    Zach Adelman
    Mar 31, 2021
    I had a very unpleasant experience with…

    I had a very unpleasant experience with Better.com Home Mortgage. The home appraiser they sent deliberately low-balled my home value, $120,000 less than the last appraisal, to be precise! He not only used a comparable that was sold 4 years ago, he also reduced the square footage of my home drastically. Better.com representatives would not take any action against the incorrect appraisal and refused to oblige to any requests I was making to validate the appraisal or to order a new one. Overall, a very unfortunate experience - wasted my $550 in appraisal fee, and wasted substantial amount of my time.

    ...