Better Mortgage Review 2024

Better Mortgage overview

Better, also known as Better Mortgage, is a direct online lender whose claim to fame is a completely digital process (with the exception of some portions of the closing) and no lender-charged fees. The lender offers a variety of loan options, including home purchase, refinance, fixed-rate, adjustable-rate, FHA and VA loans, as well as bridge and investment property loans. If you qualify, you could get preapproved online in as few as three minutes. The lender has closed loans in as little as three weeks, but expect the typical 30 days to 45 days in most instances. Better is best for homebuyers who want a speedy online experience with no fees.

Pros and cons of Better Mortgage

How Bankrate scored Better

• Affordability: As of this review, Better’s mortgage rates were lower than Bankrate’s averages, and the lender doesn’t charge any fees.
• Availability: Better operates nationwide, but it only offers conventional and some types of government loans.
• Borrower experience: J.D. Power rated Better below average for customer satisfaction in its 2023 mortgage origination study, but the lender receives high marks from customers on Trustpilot. You can easily contact Better any time with questions, too.

Affordability: 9.8/10

Better doesn’t charge any origination, application or processing or underwriting fees — a big boost to its affordability quotient. Better’s annual percentage rates (APRs) closely track with Bankrate’s national averages, so it doesn't charge fees, the cost to borrow from Better is comparable to many lenders. The lender displays mortgage rates on its website and updates them several times a day. Note that the rate it displays assumes you’re applying with a credit score of 760 and are putting 20 percent down. To use the rate tool to get a personalized quote, you’ll need to sign up for emails from the lender that contain mortgage news and promotions.

Availability: 10/10

Better works with borrowers all across the U.S., offering various loan types, such as conventional, FHA and VA loans, as well as some creative financing options like bridge loans. Better specializes in simplifying the lending process, focusing on conventional, VA and FHA loans. Better has no physical locations, so you must apply at Better.com or by phone.

Borrower experience: 7.6/10

As of this review, Better has an A- rating from the Better Business Bureau and “Great” reviews on Trustpilot. However, the lender ranked below the industry average in J.D. Power’s annual customer satisfaction study, dinging its score. This study surveys customers and assigns a number grade based on the lender’s application and approval process, communication, loan closing and loan offers. Better’s score was also lowered due to having no in-person contact options. Your experience with Better will take place mostly online: You can obtain a preapproval and apply for a loan through its website. You can receive a commitment letter within 24 hours of applying for preapproval  — faster than some traditional lenders.

How to apply for a mortgage with Better

You can apply for a mortgage with Better online or by phone at 415-523-8837. This will put you in contact with a Better loan officer. From there, you can apply for preapproval and get an offer, which you can use to compare with other lenders. Better can provide you with an underwriting decision within 24 hours if you supply financial documentation within 4 hours of locking your quoted rate.

Before applying with Better, you’ll need to have your finances in order and be able to submit documents online. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before Better does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With Better, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Better

Better offers a variety of refinance options, including:

• 30-year refinance
• 15-year refinance
• ARM refinance
• Cash-out refinance

The lender’s average refinance closing time is 32 days, and you can roll your closing costs into the new loan if you want to save money upfront.

Special programs offered by Better

Chime offer

Better has also partnered with Chime to help the app’s users save $500 on closing costs when getting a mortgage through the lender. To qualify, you must access the Better Mortgage offer through the Chime app and create an account with Better. The $500 credit will come directly off of your closing costs when the loan closes. This offer cannot be combined with other discounts or promotions.

ConsumersAdvocate.org offer

There’s a Better Mortgage promotion offered through the site ConsumersAdvocate.org. This promo will give you $150 off closing costs. To access the promo, you must create and access a Better Mortgage account through the display ads on ConsumerAdvocate.org, and qualify for and close on the mortgage with Better. This offer cannot be combined with other discounts or promotions.

Complete tasks on your Better Mortgage account

Better offers a $250 closing costs discount to borrowers who complete all open tasks in their Better Mortgage account by a specified deadline when applying for a loan. This offer cannot be combined with other discounts or promotions. 

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability. Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%

  • Availability. Loan products - 50%; licensing - 40%; credit score - 10%

  • Borrower experience. Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.