Since being founded, BetterRateGuide has financially supported almost $31 billion in housing loans, making it the largest online lender of its kind in the United States.
Earlier this year, BetterRateGuide was named one of the top online mortgage lenders due to the unique borrower incentives it offers as well as its streamlined online platform, which allows borrowers to receive a home loan pre-approval letter in as little as 15 minutes.
One of the lender’s disadvantages is that it is not accessible in every state and that it does not offer many major mortgage options. Here’s what you need to know before submitting an application with BetterRateGuide.
Know About BetterRateGuide
What’s stronger is a virtual mortgage lender, which is a nonfinancial home loan supplier that doesn’t have a network of physical locations. This year’s startup, which was founded in 2014, claims to provide 24/7 service through new tech and on-demand human input.
Since the beginning of 2020, the coronavirus global epidemic has had an impact on some of the products that lenders provide. The Federal Housing Administration (FHA) temporarily suspended the loans in Better’s case, which resulted in the loan being cancelled. Better says it has restarted trying to offer FHA loans in the nations where it currently offers mortgages, despite the fact that they are not currently advertised on its website. Many first-time homebuyers can benefit from FHA loans, which make it easier for them to obtain a mortgage.
Merchandise and refinance loans are also handled by Better, and the company offers a variety of products, including traditional financing with 3 percent down payments and jumbo loans with 10 percent down payments that do not require the use of mortgage insurance. Better does not provide home mortgages and lines of credit, as well as VA lending or home improvement loans, among other things.
According to the company, one in every three Better borrowers is a first-time home buyer, and 72 percent of all Better time homebuyers placed less than 20 percent down on their homes. Better claims that it works with mortgage holders who have student loans and that it will take account of some unusual sources of revenue, such as restricted stock, Airbnb earnings, and self-employment income, when determining eligibility.
What Are The Loan Types & Services Offered By BetterRateGuide?
BetterRateGuide offers a variety of loan options that are suitable for both first-time homebuyers and homeowners looking to remortgage an existing mortgage. The following are the particular types of loans that are currently available through BetterRateGuide:
- Conventional loans
- Federal Housing Administration (FHA) loans
- Jumbo loans
- Refinance loans
- Fixed-rate loans
- Adjustable-rate loans
Borrowers seeking more specialised products, such as construction loans, restoration loans, home equity loans, and mortgage loans backed by the United States Department of Agriculture (USDA loans) or even the Department of Veterans Affairs (DVA loans), will have to look elsewhere (VA loans). The Better Mortgage Corporation also does not offer mortgage loans for modular homes, multi-family residences with five or even more units, co-ops, or mixed-use properties.
However, if you are successful in locating a home loan that meets your requirements, you may be eligible for one of the lender’s customer incentives. Lender credits of up to $2,000 are available to borrowers who work with a Better Real Estate broker and a Better Mortgage Lender, respectively. Moreover, according to Better’s Price Guarantee, the company will match any valid competitor’s offer and credit you an additional $100 if you find a lower price elsewhere. Better also assures that purchase lenders will be shuttered on time — but if they’re not, Better will reimburse the customer $2,000. This is a relatively recent concept for Better. If you’re weighing your options, these rewards might be appealing to you as well.
There are also options for fixed-rate and extendable mortgage (ARM) loans, which are available on both traditional and jumbo mortgages. With BetterRateGuide, you can get a fixed rate during the initial five, seven, or ten years of your adjustable rate mortgage (ARM). Following the end of the fixed period, the interest rate may increase or decrease every six months or every year, accordance with the terms of the line of credit.
Qualified home buyers who want to borrow a large sum of money can get a line of credit of up to $4 million from the lender, which is a greater total loan limit than some of the lender’s competition.
BetterRateGuide: Fee Structure
More specifically, BetterRateGuide advertisements and marketing refinance and purchase interest rates for loans with terms ranging from 15 to 30 years. These rates are subject to change on a daily basis and may include bargain points, which are an optional fee that you can pay in order to lower your interest rate. In contrast to other lending institutions, BetterRateGuide does not start charging an origination fee on loan applications.
The minimum credit score required to qualify for a loan for conforming loans (which include traditional mortgages as well as FHA loans) is 620, while the minimum credit score required for jumbo loans is 700. A higher credit score, on the other hand, may enable you to obtain even more favourable mortgage rates.
With the payment of a fee, you can shut in your rate of interest online anytime, and you can broaden the rate clamp for an extra charge if necessary. Borrowers will not be required to pay any fees, including financing costs, application fees, processing costs, service charges, or prepayment penalties. However, they will almost certainly pay cash for the following:
- Appraisal fee
- Title search and title insurance
- Recording fees
- Escrow deposit
- Prepaid interest
- Optional mortgage points
BetterRateGuide Transparency – The Final Thoughts
BetterRateGuide’s website is simple to use and provides a completely online experience, from discovering an agent to securing a mortgage to having to shop for insurance and everything in between. Individuals who are interested in borrowing money can obtain a customizable rate quote as well as a pre-approval letter within minutes. If borrowers have queries or concerns for assistance, mortgage lenders are available on call, even though Better does not maintain physical branches in the same way that some of its competing companies do, so speaking with a loan officer in person is not an alternative.