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Better.com Mortgages and Loans: How Do They Work?

Andrew Reyes
A person looking at a house on a mortgage website.

Better.com was established in 2014 and provides mortgages to home buyers and homeowners looking to refinance. Better.com is a direct lender that’s served tens of thousands of customers with home lending solutions.

The company uses a unique online-only mortgage application process to pre-approve, close, and service loans. To find out more about Better.com and the types of home loans available through the lender, review the information provided below.

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Better.com Mortgage Process

You can complete the mortgage application process with Better.com completely online. When you visit the lender’s website, you’re prompted to provide your personal information, create an account, and go through the steps to complete the application process.

You can also upload loan documents, such as paycheck stubs or bank account information, to prove you’re financially ready to buy a home. When you sign into your online account, you can check the status of your home loan application or find out the next steps in the process.

When you complete the first steps of the online application process, you’re assigned a dedicated loan officer to assist you. You can contact this loan officer at any time if you have questions about your loan options or want to review the closing costs associated with your mortgage.

If you’ve completed your mortgage application and you qualify for a home loan, you may have a few options. The loan type, term, and interest rate may vary, depending on your financial situation, the home you’re planning to buy, and other factors.

If you’re satisfied with a mortgage option, you can lock in the term and rate so you have time to gather your paperwork and sign the loan documents. In most cases, you can close a Better.com loan in three to six weeks.

If you have issues with the online application process, you can also utilize the live chat function on the Better.com website. Representatives are available to assist you Monday through Friday from 9 a.m. to 9 p.m. EST and Saturday or Sunday from 10 a.m. to 6 p.m.

Better.com Mortgage Rates

You can look at interest rates in your area on the Better.com site. The interest rate you qualify for depends on your financial situation, the type of loan you’re eligible for, your mortgage down payment, and the home you want to buy. If you try to buy a home with bad credit, your interest rate will likely be high, as well as your down payment requirement.

When you close on a home loan through Better.com, you’re not responsible for paying lender fees, including:

  • No loan officer commissions.
  • No lender origination fees.
  • No underwriting fees.
  • No application fees.

However, there are third-party fees associated with a mortgage, which may vary depending on the type of loan you close on. You may be required to pay appraisal, settlement, and title fees to complete the home loan process.

Better.com Loan Services

To qualify for a loan with Better.com, you must be able to prove you earn an income and can afford the monthly mortgage payment. You can use the company’s online affordability calculator to learn how large of a mortgage you’re able to afford while remaining financially stable.

There are several types of home loans Better.com offers, including the following:

  • Conventional: A conventional loan isn’t backed by the government and you must have a large down payment and satisfactory credit score to qualify. With a conventional loan, you can generally choose between a fixed or adjustable rate.
  • Jumbo: When you buy a home with a conventional loan, you must adhere to a maximum loan amount, which may vary depending on where you live. If you want to purchase a home for a higher price, you may need to apply for a jumbo loan instead.
  • FHA loan: An FHA loan is backed by the federal government and is generally a good option for first-time homebuyers. You may qualify with a down payment as low as 3.5% and you’re generally not required to have an excellent credit score to be eligible.
  • Refinance: When you explore refinancing options with Better.com, you’re not required to pay origination fees on your new loan. You may be able to pull out equity for expenses instead of applying for a personal loan or you could lower your monthly payments.

You may qualify for an adjustable-rate mortgage, which allows the interest rate to change each year according to the market. If you want a consistent mortgage payment each month, you should only consider a home loan with a fixed interest rate.

Better.com doesn’t provide USDA or VA loans and doesn’t write mortgages for manufactured homes or mixed-use properties. It’s different from other lenders because it doesn’t charge lender fees. The company earns a profit when an investor buys the loan.

How to Apply for a Home Loan From Better.com

As an online lender, Better.com makes it easy to apply for a home loan through the company website. To complete the mortgage application process, follow these steps:

  1. Visit the Better.com mortgage site.
  2. Choose “See rates” to start a new home loan application.
  3. Choose where you are in the homebuying process, such as just researching or making offers.
  4. Answer questions about the home you want to buy, including where it’s located and the type of property.
  5. Provide information about your financial situation.
  6. Receive a mortgage pre-approvaland review your loan options.
  7. Choose the loan option that best suits you.
  8. Upload required documents, such as proof of income.
  9. Close on your loan and electronically sign the loan documents.

If you find it quick and convenient to complete the mortgage application process online and you’re not looking for a VA or USDA loan, Better.com may be right for you. When you complete the online application process, review your loan options carefully and choose the mortgage that fits into your budget and allows you to buy the home you want.


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