October 28


Better Mortgage Reviews

Better.com is the perfect choice for home buyers as well as refinancers who value transparency and low rates. Their application process is completely online.

This review will cover everything you need about Better Mortgage. It will also help you decide if it is the right online platform to lend your mortgage.

What is Better.Com?

Minimum Down Payment: 33%

Minimum credit score: is 580

Mortgage Products/ Mortgage Offers: Fixed rate mortgage, Adjustable-rate, Jumbo, FHA, FHA, and Fannie Mae "HomeReady” mortgage

Better.com, also known as Better Mortgage, is an online lending platform that was launched in 2014. It is currently based out of New York. Better.com offers loans to help you purchase or refinance a house. You can complete the entire mortgage process online, unlike other lenders.

Higher Mortgage Rates

Better Mortgage is one the few lenders that offers lower closing costs and mortgage rates than its competitors.

Better offers a significantly lower mortgage rate and fees. This includes the origination fee, which is approximately 1& of the loan amount.

They also offer a best price guarantee. This means that they promise to match the rates of their competitors or they will pay them $1,000.

This promise comes with some fine print.

To help you choose the right mortgage for you, you can visit their website and check out their interactive mortgage tools.

Better.Com Mortgage Refinance Rates

Better.com offers refinance rates similar to their mortgage rates. They are either at the same level as major mortgage providers or slightly lower than them.

To verify your eligibility for the advertised refinance price, you will need to still apply. Your refinance rate may differ depending on your credit score and loan size.

Different types of home loan products offered by Better.Com Mortgage

These are the types home loans offered by Better.com:

Fixed-Rate Mortgages:

Fixed-rate mortgages offer a fixed rate that locks in your interest for the entire loan term. Fixed-rate loans are available for 15, 20, and 30 years.

Mortgages with adjustable-rate rates:

Fixed-interest mortgages, also known as adjustable-rate mortgages (ARM), offer a fixed rate of interest for the first 5,7 or 10 years. After this time, your floating interest rate will be in effect.

FHA Loan for Home:

Federal Housing Administration, or FHA mortgages, are supported by Federal Housing Administration. You can get a down payment as low as 3.5 per cent. Credit requirements for FHA loans are much easier.

FHA Loan for Home:

Federal Housing Administration, or FHA mortgages, are supported by Federal Housing Administration. You can get a down payment as low as 3.5 per cent. Credit requirements for FHA loans are much easier.

Jumbo Home Loan:

A Jumbo loan may be the right option for you if you are the type of customer who needs a larger loan amount than the current conforming loan limit, which is $548,250. Jumbo fixed rates lock in your interest rate throughout the loan term.

Home Ready Loans:

Better Mortgage (Better.com), also offers a loan program called HomeReady, which is intended to help borrowers with low incomes who don't have the funds for a downpayment.

Better.com is a great lender to consider for people with high debt levels. Depending on the conditions, they may lend with DTI ratios as low as 55 percent. This is quite generous considering traditional loans have a cap of 43%.

Types Of Mortgages Better Does Not Offer

Better.com doesn't offer a wide range of mortgage products. They do not offer the USDA or VA loans that most mortgage lenders have. They are not a good choice for some borrowers.

There are also other loans that aren't part of Better.com mortgage products:

  • Modular homes
  • Multi-family homes that have 5 or more units
  • Units of co-op
  • Mixed-use properties
  • Construction projects
  • Bank-owned or foreclosed properties

They do offer home mortgage options for investment properties. They offer low-payment incentives to owner-occupied buyers that allow them to purchase as little as 3% off the purchase price.

What is Better Mortgage?

Better Mortgage is similar to most lenders in that it operates in certain ways. It rates loans based on the property's price, down payment, credit score, and financial situation. You will be paying normal monthly mortgage payments.

The difference is in the way you can process mortgage loans online and refinance them. The process is simpler and more straightforward.

Best doesn't charge lender fees so closing costs may be lower than other mortgage providers.

Work with Better Mortgage

Better.com is not for you if you don't have the technical skills and prefer to do things the traditional way.

Better.com's entire concept is an online experience that provides an end-to–end online experience. You can use your smartphone, tablet or other device to:

  • Apply for a loan by prequalifying
  • Apply for a loan
  • Upload documents securely
  • Close your home mortgage loan.
  • Manage your Better account.
  • Sign with your electronic signature

If you need help with any of these steps, you can always call a loan officer to assist you. You can also use the Better website to set up a time for them to reach you.

Better is generally trying to keep all processes online. This saves time and money for the business, which ultimately benefits the borrowers.

Better.com claims that you can close your home loan in as little as 14 days. This is quite fast considering that an average mortgage refinance or mortgage would take between 30-70 days.

Better pointed out that their clients had an average of $3,557 savings on each loan payment for 2018. Of course, savings can vary from client to client. It's worthwhile to compare prices and costs to determine if Better is right for you.

Which mortgage is better?

Vishal Garg (41), founder and CEO of Better.com, was unable to afford their dream home because of what Garg claims were inefficient home-buying systems.

The Better Mortgage Price Guarantee

Better.com's Best price Guarantee guarantees that:

Send us a loan estimate if you feel another lender offers a better price. We will respond within three business days of the date on your loan. We'll give $1000 cash if we can beat it by less than $1000 This is not a sales pitch or flash sale. This is simply our promise to keep you informed.

This sounds great at face value. However, there are some important terms.

How does the Best Price Guarantee work? If the rate you received from Better and Wells Fargo was equal, but Wells Fargo's closing costs were lower, Better would either match Wells costs or issue a $1,000 check to you.

Although it sounds easy, Better will not allow you to collect your mortgage. The same company and loan deal that you used to challenge Better's pricing must be used to close your mortgage. You must also provide evidence of your loan funding to Better within the 30-day period.

Better's $1,000-deal will be invalid if there are any changes to the loan amount, sales price, or if your interest rate is locked at a different rate during loan processing.

There are no hidden terms or conditions to the $1,000-deal. Point is Better is confident in their pricing and is willing to make a deal.

How to Qualify for a Better Mortgage Corporation?

Two things are important in determining your eligibility for a Better mortgage: your financial situation and where you live.

They will assess your credit history and other obligations to determine if you are able to repay your loan on schedule.

They will also check your DTI, or debt-to income ratio. This is your monthly debt to your gross monthly income. Better will use this information, just like other lenders.

They offer creditworthy borrowers offers with DTIs up to 50%

They also offer conventional loans to those with a FICO Score as low as 620. Keep in mind that the interest rate you pay will likely drop as your credit score improves.

You Can Get a Better Mortgage If:

Better.com is a leading industry lender. Their lending process is more efficient and they charge less than many of their competitors.

Here are some reasons why you might choose this lender if you aren't sure:

  • Refinances are possible at very attractive rates.
  • They charge less fees. They don't charge lenders origination fees. You can save more money by paying less fees.
  • Better provides a digital experience for their loan application process. If you are tech-savvy, getting a mortgage with Better is quick and simple.

Top Perks Of Better Mortgage

Low rates and price guarantee

Better is able to beat most of its competition because they have lower mortgage rates and charge fewer fees. However, the price guarantee shows how confident Better is in their pricing and that they will cut you a deal.

Better will attempt to beat a competitor's offer in this $1,000 deal. If they are unable to beat you, you can keep the money. This is a great opportunity, wouldn't you agree?

$150 Discount on Closing Costs

Apply through the Ascent website to receive a $150 discount on closing costs. This is an exclusive perk that you can enjoy in addition to the low rates at Better.

There are no origination fees

Better will not charge origination fees. This allows you to save as much as 0.5% on your closing costs.

Quick Loan Estimates And Pre-Approval

You can receive your pre-approval documents and loan estimates in just minutes. These pre-approval letters are usually issued by most lenders within days.

Better provides them in just minutes. The automated technology that they use to digitally underwrite your loan makes this possible. Because you are fully underwritten, this allows you to make better offers when making an offer on a house.

Simply stated, Better helps you stand out by sending a quick pre-approval letter for a mortgage to show sellers that you are able to invest in large real estate purchases.

Lock in your Interest Rate on Demand

Better allows you to lock in interest rates at any time during your mortgage application. Better can lock in the rate until you close on your house to make sure it does not change throughout the entire process.

This perk is not offered by other lenders.

Completely Online Application

Better.com is a digital lending platform.

Everything else, including the signing of the final documents, is done online. Online experience is best for those who can use a computer or a mobile device.

All you have to do is fill out the online application and submit all documents through their secure system.

Access to Dedicated Loan Officers

After you have completed the pre-approval process, you will be assigned a loan officer. You will receive the contact information of the loan officer so that you can reach this person throughout the mortgage process.

Get Discounts

Borrowers can get up to $2,000 in lender credit through the Better Real Estate discount program. This benefit is available to you if your mortgage lender is Better and you choose a Better-recommended real estate agent.

Get Better Protection for Your Homeowners Insurance Requirements for Your Mortgage

Better Cover is Better.com is an in-house insurance provider that allows you to search online and find insurance policies along with your Better Mortgage application.

What could be improved?

All States Available

Better's products or services are not available to all states, including Nevada, Virginia and New Hampshire.

Loan Product Availability

Better currently does not offer VA loans or USDA loans. HELOCs and home equity loans are not offered by Better. Home equity loans allow homeowners to borrow against their equity.

Does Better Mortgage Charge PMI?

They do like all other lenders.

Your PMI will automatically be cancelled if conventional loans exceed 78% loan-to value. FHA loans are also available (which require mortgage insurance) through Better.

FHA mortgage insurance covers the loan for 11 years, or the length of the loan depending on the down payment.

Better.Com Mortgage Review: Other Options To Consider

It is always a good idea compare the products and prices of mortgage lenders to determine which one best suits your needs. You can also compare rates through Bankrate.

Two other options to Better are worth looking at:

Rocket Mortgage

Rocket Mortgage is a popular online mortgage lender and offers a digital experience that's similar to Better.com. Rocket Mortgage also offers instant online approval, which helps you stand out in the home buying process.

Borrowers with different credit scores have the option to customize their terms and can choose from terms ranging from 8 to 29.

SoFi Mortgage

SoFi Mortgage is another good option for mortgage lenders. They offer attractive rates and member discounts.

There are two types of mortgages that borrowers have the option to choose from: fixed rate or variable rate. They can also save on application and origination fees with SoFi.

SoFi not only looks at your credit score but also assesses other variables like income, employment and on-time payments.

You can save as much as $500 on loan processing fees and down payment.

Better.Com Mortgage Review: Are They the Best Mortgage Lenders?

Lending flexibility: 3.5

Customer service: 5.0

Application is easy: 5.0

Online experience: 4.5

The spokesperson for A Better said:

"Our mission is change America's way of buying and refinancing their homes by offering lower rates, quicker closing times, and a technology-driven, transparent process.

"We place importance on the customer experience with an online process that provides instant loan estimates, honest rates quotes, and pre-approvals within 24 hours. All of this is complemented by non-commissioned loan officers.

They keep their word for many.

Better's business model may be the right fit for you if you are a tech-first shopper and hate paperwork.

An online lender of mortgages has its downsides. Better is almost entirely online and there are no physical branches.

Better.com was founded in 2014 and is still developing its mortgage products. They do not have VA and USDA loans, which are the major loan types that a lender should offer.

Better does not offer home mortgage loans, multi-unit buildings, cooperatives, and mixed-use properties. Better is not for everyone.

Better.Com Mortgage Review: The Bottom Line

Better Mortgage is a great option if you are looking for low rates and fewer fees (application fee or origination fee). It is easy to apply and quick, which tech-savvy individuals love.

However, their Best Price Guarantee program does not cover VA and USDA loans. This could be a reason that some people might not choose them.

They were founded in 2014 and are still developing their services and pursuing licensing in every state.

The bottom line is that you can determine which mortgage lender is right for you by comparing their rates and fees to other lenders.

The Best Alternative to a Better Mortgage

Imagine if you didn't have to visit a lender or crumby lender again. Imagine not having to worry about your application being rejected due to a poor credit score.

We're going to quickly discuss a business model which will provide you with funding Sofi can only dream of.

Of course, we're talking about...

Digital Real Estate!

Digital real estate means you don't need to worry about your credit score or personal credit.

You don't even need to worry about lenders asking for a high credit limit because your business expenses are almost non-existent.

Take a look

Most people require lenders because they plan to start a business that is based in brick and mortar with small margins.

We are sorry to say this...

However, the current political climate and the talk of a "new Normal" make it difficult for any business to enter the brick and mortar market right now.

The digital real estate model is something you need to look at.

You only need to build a website and do some on-page SEO.

Okay, great, but how valuable is a website at the top of Google?

To get a job that is worth the money, you need to create a website for calling in jobs such as roofing or tree service.

Let's say we have a roof.

A roofing job can be worth anywhere from $5,000 to $10,000, while a lead can be worth $500-$1,000 (or 10%). If you make 10 calls, or you earn $50,000 in revenue, you can earn $5,000 per month from this site!

This is a lot of rent you are getting in real estate!

Imagine scaling this business up.

These sites can be built in less than one day. We know this because we have tried.

Imagine what a mere 10 sites could do for your monthly income.

Imagine never again worrying about your credit score or going before lenders.

Okay, but is it really that easy to get clients for such a thing?

It's super easy! In fact, our team actually tried it!

There are many business owners across the country who want more business. They'll be happy to give you 10% if you are able to bring them jobs every month.

Even if you don't have a brick-and-mortar business, this could be used to provide the funding Better Mortgage can't offer you.

Many people who took the course on digital real estate actually started off just like this!

They wanted to attract more clients for their business so they built a website and ranked it on Google locally.

They had phone calls in a matter of months and were producing more than Better Mortgage could provide.

They soon realized how lucrative it was and decided to expand their operations in other areas and markets.

This digital real estate course is recommended for those with bad credit scores.

This training will take you step-by-step through the process of building these assets.

You will also find a wonderful group of people who are available to answer any questions that you may have 24 hours a day.

You can get fast funding without the hassle of applying.

Take a look at this course!

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