Better Mortgage Lender Review 2021: Easy Online Pre-Approval

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Better Mortgage is a fully online lender that has funded nearly $ 31 billion in home loans since its inception in 2016. Based in New York City, Better.com offers Mortgages in 46 states and Washington, DC

Better Mortgage was recently named one of the best online mortgage lenders by NextAdvisor for its unique borrower incentives and a streamlined online platform that allows borrowers to get a mortgage pre-approval letter in minutes. A couple of downsides are that this lender is not available in every state and it lacks some key mortgage options. Here’s What You Should Know Before Applying to Better Mortgage.

Advantages and disadvantages of a better mortgage

advantages

  • No deployment fees

  • Quick mortgage prequalification letter

  • Borrowers are paid $ 100 if Better fails to meet or exceed another lender’s credit estimate

  • Offers incentives up to $ 2,000 when applicants hire a Better Real Estate agent and mortgage lender

  • Customers get $ 2,000 if Better doesn’t complete their purchase credit on time

disadvantage

  • Not available in Hawaii, Massachusetts, Nevada, and New Hampshire

  • Does not offer VA loans, USDA loans, secondary mortgages, and other niche products

  • No personal branches

Better Mortgage: Loan Types and Products

Better Mortgage offers several loan options for home buyers looking to make a purchase or homeowners looking to refinance an existing mortgage. Here are the specific types of loans currently on the menu at Better Mortgage:

Borrowers will have to look elsewhere when looking for more niche products like construction loans, home improvement loans, home equity lines, and mortgages that are covered by the U.S. Department of Agriculture (USDA loan) or the Department of Veterans Affairs (VA loan). Better also does not offer mortgages for prefabricated houses, apartment buildings of five or more units, cooperatives, and mixed-use properties.

However, once you find a home loan that suits your needs, you may qualify for one of the lender’s customer incentives. Borrowers are eligible for up to $ 2,000 worth of lender loans when using a Better Real Estate broker and mortgage lender. According to his Price guarantee, Better will also match any valid offers from a competitor and credit you an additional $ 100 if they find a better deal. Plus, in a relatively new development, better now Guarantees That purchase credits are completed on time – and if they are not completed on time, Better pays the customer $ 2,000. These incentives can be attractive when you consider your options.

Borrowers also have a choice of fixed rate and adjustable rate mortgage (ARM) loans on conventional and jumbo mortgages. When you get an ARM with Better Mortgage, the interest rate is fixed for the first five, seven, or 10 years. After the fixed term has expired, the rate can rise or fall every six months or one year, depending on the loan terms.

Skilled homebuyers looking to borrow a large amount of money can borrow up to $ 4 million, which is a higher maximum credit limit than some of the lender’s competitors.

Better mortgage transparency

Better Mortgage’s website is easy to navigate and offers a complete online experience, from finding a broker to securing a mortgage to buying insurance. Prospective borrowers can apply for and receive a customized interest rate offer and pre-approval letter within minutes. If borrowers have questions or need help, loan officers are available over the phone, although Better does not have personal branches like some of its competitors do, so face-to-face is not possible.

The website also includes a home buying blog, a FAQ page, and calculators to help borrowers figure out how much home they can afford. There is a lack of detailed information about the minimum creditworthiness and debt-to-income ratio for their loans, likely because the requirements vary widely by borrower, location and current market.

Better Mortgage: Rates and Fees

Better Mortgage advertises refinance and purchase rates on 15-, 20-, and 30-year loans. These prices can change daily and include: Discount points, that is an optional fee that you can pay to lower your price. Unlike other lenders, Better Mortgage does not charge a commitment fee.

To qualify for a mortgage, you must have a credit score of at least 620 for compliant loans (including conventional mortgages and FHA loans) and 700 for jumbo loans. However, a higher score can help you get even cheaper mortgage rates.

You can lock your interest rate online at any time for a fee and extend the interest lock for a surcharge. Borrowers pay no issuing fees, application fees, processing fees, subscription fees, or prepayment penalties. But they’ll likely pay out of pocket for:

  • Appraisal fee
  • Title search and title insurance
  • Admission fees
  • Escrow deposit
  • Prepaid Interest
  • Optional mortgage points

Refinance With Better Mortgage

Homeowners with existing mortgages looking to refinance can swap their home loans to better meet their financial needs.

One refinancing option offered by Better Mortgage is a cash-out refinance. This type of refinance allows you to take out a mortgage for more than you owe, pay off your current mortgage, and keep the extra money. You will then pay back the new, larger loan over time and use the money for any type of expense.

However, if you just want to save money or shorten your payout period, an interest- and term-oriented refinancing can help you achieve this goal. You would work with your Better Mortgage lender to change your interest rate, your repayment term, or both.

Better has multiple pricing and term options, including RefiNow from Fannie Mae and RefiPossible from Freddie Mac. These programs are designed to help Low income homeowners in the US are refinancing their mortgages. Eligible homeowners could save an estimated $ 100-250 per month. according to to the Federal Housing Finance Agency.

Better mortgage compared to other mortgage lenders

Better mortgage Fairway Independent Mortgage Corp. Guild mortgage
Minimum creditworthiness 620 for Compliant Loans, 700 for Jumbo Loans 620 for conventional loans, 660 for jumbo loans, 600 for FHA loans, 600 for VA loans 620 for conventional loans, 600 for FHA, VA and USDA loans, 680 for jumbo loans
Minimum deposit 3% 0% to 5% 0% to 3.5% for most loans and 15% for jumbo loans
Where does the lender operate? 46 states and Washington, DC All 50 states and Washington, DC 48 states and Washington, DC
Major Loan Types Conventional, Jumbo, FHA, Variable Rate, Fixed Rate, Refinancing, Cash-Out Refinancing Conventional, Jumbo, VA, FHA, USDA, Diverse Home Improvement Loans, Variable, Fixed Income, Refinancing, Cash Out Refinancing, Reverse Mortgages, Home Equity Loans, Home Equity Lines of Credit Conventional, Jumbo, VA, FHA, USDA, Diverse Renovation Loans, Variable, Fixed Rate, Refinance, Cash Out Refinance, Energy Efficient Mortgages, Prefabricated Home Loans, Bridge Loans, Reverse Mortgages

How to Shop to Get the Best Mortgage Rate

Mortgage rates are always in flux. They can change every day and even hourly and vary with each lender. So when looking for the best deal, it is important to shop around and see what each one has on offer.

Pro tip

You can … a Online mortgage calculator to estimate your mortgage payment when you factor in principal and interest, property taxes, home insurance, personal mortgage insurance, and homeowners association fees. This can also help you calculate how a small difference in interest rates could save you hundreds or thousands of dollars over the life of the loan.

Start by comparing mortgage lenders, submitting mortgage applications, and soliciting a loan estimate from at least five lenders. According to a Freddie Mac survey, borrowers save an average of $ 3,000 over the life of the loan when they obtain at least five quotes. You can save even more by bargaining. You can send the best offer to another lender and ask them to beat the interest rate or cut the closing costs – or both. You may be ready to compete for your business, especially if you have good credit.

Bottom line

A better mortgage could be a good option for you if you are looking for a standard mortgage and if you qualify for some of the lender’s money saving incentives. If you choose Better Than Your Lender, you can have a prequalification letter online in minutes that can help you start the home shopping process. But, as with any financial product, it’s always a good idea to compare offers to make sure you’re getting the best deal.

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