Better Mortgage Review 2022

Better Mortgage is a mortgage lender that offers a wide range of products, including fixed-rate and adjustable-rate mortgages, as well as jumbo and government-backed loans. Better Mortgage also offers a number of tools and resources to help borrowers throughout the mortgage process, including a mobile app, an extensive online library, and personal support from Better Mortgage loan officers.

Better Mortgage is headquartered in New York City and is licensed to lend in all 50 states. Better Mortgage was founded in 2016 and is one of the newer entrants into the online mortgage space. Better Mortgage has grown quickly and currently operates in 32 states. Better Mortgage is one of the few online lenders that offers both government-backed and jumbo loans.

Better Mortgage review for 2022 shows they are a reliable lender with a good reputation. They offer a wide variety of loan types and have helpful tools and resources available to borrowers. Better Mortgage is licensed to operate in all 50 states but only currently offers loans in 32 states. If you’re looking for an online mortgage lender that offers a wide range of products and services, Better Mortgage is worth considering.

Better Mortgage

Better Mortgage is a lender that operates nationwide and offers a variety of loan options, including conventional (fixed and variable rate), FHA, and jumbo loans. The company operates entirely online and offers assistance throughout the application process.

Better Mortgage’s eligibility requirements are pretty standard for the types of loans it offers, and it also offers some perks for first-time home buyers. For example, the company offers a “Homebuyer’s Rewards” program that provides discounts on closing costs, as well as a “Lender Credit” program that can cover up to $1,000 of the borrower’s appraisal fee.

Better Mortgage also has a strong commitment to customer service, with a dedicated team of loan officers available to answer questions and help borrowers through the entire process.

The benefits explained

Better Mortgage offers a number of advantages for potential borrowers. One key advantage is that the company does not charge any commission or origination fees. This can save borrowers a significant amount of money over the life of their loan. Another advantage is the simplified pre-approval process.

Borrowers can get a pre-approval letter within 24 hours of submitting their application, which can save time and hassle. Finally, Better Mortgage allows borrowers to easily view custom rates. Interested borrowers do not need to provide their personal information before consulting the rates and conditions to which they are entitled.

This makes it easy to compare loans and find the best option for each borrower’s unique situation.


Disadvantages Explained

  • No offline option available: Better Mortgage is not suitable for those who prefer to apply at a branch in person.
  • Limited loan types available: Better only offers conventional, jumbo, and FHA loans; VA, USDA, HELOC and home equity loans are not available, among other types.
  • Limited Expert Warranty: The promise that the loan will not change if the appraisal is lower than expected is only available to those who work with better realtors.

Looking for types of loans that Better doesn’t offer? Take a look at our list of best mortgage lenders to find a company that can meet your needs.


Types of mortgages offered by Better Mortgage

Better Mortgage offers the following loan types:

  • Classic loan: Conventional mortgages have a minimum credit score of 620 and a maximum debt ratio of 50%. There are no lender fees; borrowers should contact Better Mortgage to determine a minimum down payment amount.
  • giant loan: This type of mortgage exceeds the limits set by the Federal Housing Finance Agency (FHFA) – $647,200 for most of the country. Borrowers can start the application process or contact Better to find out more about its jumbo loan requirements.
  • FHA loan: Applicants must pay a deposit of at least 3.5% if their credit scores are above 580, or at least 10% for scores of 500,579. Debt ratios can reach 43%. You can check the requirements set by the United States Department of Housing and Urban Development (HUD) for more details as well.

Best mortgage features and benefits

The Better Mortgage service includes the following features and benefits:

  • Home ownership programs: Applicants may be eligible for programs such as Home Possible Loans, which are backed by Freddie Mac. Qualifying requirements include an income at or below 80% of your regional median income (AMI), completion of a qualifying homeownership class, and occupancy of the home as your primary residence.
  • Discount points:Points are an upfront amount you pay to lower your mortgage rate. In most cases, a point costs 1% of your loan amount and can reduce the rate by a fraction of a percent.
  • Expertise guarantee: If an appraisal is lower than the purchase price, many lenders may not approve the loan, or the terms of the loan will change. However, those who work with a Better Mortgage real estate agent will not have their loan details changed, even if the appraisal is lower.

It can be tempting to work with a Better Realtor to take advantage of the appraisal guarantee. However, it’s a good idea to speak with a few agents from several companies before deciding which one you want to work with.


How to Apply for a Better Mortgage

Follow these steps to apply for a mortgage with Better Mortgage:

  1. Select the “Get Started” button on the lender’s website.
  2. Fill in details such as locations where you want to buy a home and whether you want to get pre-approved, find a real estate agent, or submit an application.
  3. During the pre-qualification phase, you will be able to see the mortgage rates and the conditions for which you qualify. Within 24 hours of submitting the required information, you should receive a pre-approval letter.
  4. You can also submit a complete loan application during the above step by providing the required documentation during the underwriting process. You will need proof of income, bank statements and tax returns, among other documents.
  5. Review Better Mortgage’s closing documents and meet all other conditions before closing your home loan.


Customer service

Clients can contact Better Mortgage by the following methods:

  • Telephone: (415) 523-8837
  • Email:

You can contact your loan officer if you have any questions regarding your loan application.

Client satisfaction

In Investopedia’s customer satisfaction survey, Better Mortgage received a rating of 6.15 out of 10, the third highest in our ranking.

The lender received about 157 consumer financial protection complaints in 2021, mostly about closing a loan and applying for a new loan.

Account management

Better Mortgage has a secure online portal where applicants can track their loan process, view status updates, and upload required documentation.

After closing, borrowers will be advised how to make their first loan payment. You can manage your loan account online through the same portal and you can use it to contact customer service if you have any questions.

Alternative choices

The only way to find the right loan is to shop around with multiple lenders. Consider the following lenders with Better Mortgage.

Best Mortgage Wells Fargo rocket mortgage
Minimum credit score 620 (conventional) 620 (conventional) 620 (conventional)
Maximum TDI 50% (conventional) Varied 50% (conventional)
Home ownership programs Yes Yes Yes
Rates Not disclosed Varied 30-year fixed: from 6.533% APR 15-year fixed: from 5.932% APR
Costs None Varied Not disclosed
Types of loans Conventional, FHA, Jumbo Conventional, VA, USDA, FHA, Jumbo, interest only Conventional, VA, Jumbo
Average closing time 32 days 60 days 26 days
Availablity At national scale At national scale At national scale

Although Better Mortgage does not charge lender fees, it may not have the lowest rates. It would be better shop with multiple lenders and compare APRs before deciding which one you want to use.

Compare lenders based on criteria such as:

  • APR: APR (annual percentage rate) of a mortgage includes interest and fees. It is a more accurate comparison when looking at the cost of loans between lenders.
  • Down payment requirements: Down payment requirements will affect how much you need to pay upfront for a mortgage; check this factor to help you determine if an offer is affordable for you.
  • Discounts: Points help lower your interest rate and lenders typically charge 1% of your loan amount for each point you purchase.
  • Loan conditions: Some lenders offer more than the usual terms of 15 and 30 years to help borrowers pay monthly payments.
  • Penalties: Most lenders don’t charge prepayment penalties, but it’s worth making sure your lender of choice doesn’t either.

final verdict

The main advantage of Better Mortgage is a completely online and simplified pre-approval and application process. It’s perfect for tech-savvy borrowers who don’t want to work with someone in person. The ability to get pre-approved within 24 hours can be a big advantage, especially for those looking to buy a home and want to be competitive with other buyers.

Although Better Mortgage does not charge lender fees and is available nationwide, the downside is that it does not offer VA or USDA loans. Still, it’s a lender to consider if you’re interested in conventional or FHA loans, given its streamlined process and other benefits.


How We Review Mortgage Lenders

Investopedia is dedicated to providing consumers with comprehensive and unbiased reviews of mortgage lenders. We assessed 45 mortgage lenders and collected nearly 1,500 data points, including information on the following:

  • Quality of service (customer experience, online applications, benefits/grants, etc.)
  • Operational characteristics (state licensing coverage, number of loan officers, etc.)
  • Types of loans offered (fixed rate, FHA, USDA, etc.)
  • Accessibility (days before closing, minimum debt ratio, etc.)

We also conducted a survey of 1,195 mortgage borrowers to learn more about the most important characteristics from the customer’s perspective and customer satisfaction with different lenders. Mortgage lenders have been objectively rated in the categories above to help readers make informed home loan decisions.

Find out more in our comprehensive mortgage lender review methodology.

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