Better Mortgage Review
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Founded in 2014, Better Mortgage is an online platform that connects borrowers with top real estate agents across the country and provides them with mortgage rates and homeowner’s insurance. Through its web interface, borrowers can apply for loans, get rate quotes and submit required documents digitally.
In this era of entirely online home loans providers, few have embraced the trend as wholeheartedly as Better Mortgage; there are no physical locations. With this rapid process, applicants can receive mortgage preapproval within minutes. Unlike many of its many online offerings, Better Mortgage does not charge commissions or fees for any. Instead, it connects lenders to buyers of the loan who pay Better Mortgage on behalf of the lender. To date, Better Mortgage has processed $7.9 billion in home loans and $1 billion in insurance.
Services Offered by Better Mortgage
As of September 2020:
- They offer online mortgage processing without origination costs with a promise of pre-approval in three minutes.
- Simple refinancing allows borrowers to lock in rates online quickly and easily.
- Access to neighborhood real estate brokers offering $2,000 in closing cost reductions to help with house purchases.
- Title insurance is necessary when verifying property ownership.
- Online platform for selecting and completing homeowner’s insurance.
Better Mortgage offers 10% down on jumbo loans without mortgage insurance and 3% down on standard loans. However, their options are limited compared to some competitors who also provide home equity lines of credit (HELOC), veteran affairs (VA) backed mortgages or Federal Housing Administration (FHA) insured loans which are often used by first-time buyers.
While other companies publish their mortgage rates directly on their websites next to competitors’ clear upfront rates; bettermortgage.com makes you enter personal information before showing you fresh up-to-date numbers – quite different indeed! They also take self-employed individuals into consideration along side homeowners receiving income from Airbnb rentals plus those still paying off student loans.
Fees and Terms
Better Mortgage doesn’t charge commissions or fees – this alone saves borrowers a lot of money usually spent on underwriting, origination, application and title search costs. Additionally, the company promises to save clients an average of $3,500 each by cutting $2000 off closing fees for mortgage or refinance deals!
Application Process
With six steps that include choosing a mortgage type, providing personal and financial information, doing a soft credit pull, selecting a mortgage option, chatting with an online loan consultant and getting an official Loan Estimate; bettermortgage.com is completely online. Preapproval happens fast but it could take up 21 days altogether for closing after preapproval.
A loan estimate needs basic information like name, contact info., government issued ID #’s (Social Security Numbers), asset lists versus debt lists along side W-2’s plus recent paystubs.
Borrower Requirements
Better Mortgage adheres to Fannie Mae and Freddie Mac conforming lending criteria which entail good credit (usually 620+ FICO score), no more than 55% debt-to-income ratio and minimum down payment of 10% down for jumbo mortgages; while conventional loans call for at least three percent down. They’re present in all states except Minnesota NV VT NH MA DC VA WA
- Savings as high as $2,000 on closing costs.
Disadvantages:
- No FHA-backed loans.
- Limited options: no brick-and-mortar stores, no home equity lines of credit (HELOCs), and no home equity loans.
Client Feedback and Conclusion
Better Mortgage has received positive feedback on several platforms for its efficiency and user-friendly online interface. While it may not be the right fit for every borrower, its pricing model and streamlined processes make it an attractive choice for many. Even though they do not offer certain types of loans, Better Mortgage is still a great option because of how fast they are and their affordability.
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