NEW YORK--(BUSINESS WIRE)--Better Mortgage, a digital mortgage company focused on improving access to home financing for a new generation of homeowners, announced that it originated over $157 million in purchase mortgages in 2017, over 1500% growth from the $10 MM in purchase mortgages funded by the company in 2016. Nearly 75% of this financing went to millennial borrowers, more than half of whom were first-time homebuyers.
Better homeowners used its technology to instantly access first-time homebuyer products and other government-backed programs designed to make homeownership more affordable -- offerings most mortgage banks are poorly equipped to handle at scale. Better’s customers bought their dream homes, putting an average of 17% down, while still saving an average of $3,557 in transaction costs alone. They also received some of the lowest rates available, backed by the Better Price Guarantee.
“When we launched the first fully online purchase mortgage product, most industry insiders said that we wouldn't be able to breakthrough. They said people would not apply online and didn’t care about our non-commissioned model, preferring to walk into a branch or talk to someone in their agent's office, even if it costs them 1% more per year for the life of their loan. The media rang the alarm bell that millennials aren't buying homes. They were stuck managing student debt or paying sky-high rents making it impossible to save. Or worse, pundits posited that homeownership was a thing of the past because the avocado toast generation wasn't interested in being tied down with a 30-year commitment," Better CEO and Founder Vishal Garg shared.
"But over $150 MM in online purchase mortgages later, we're proving that what's holding this new generation of homeowners back isn't the desire, but the lack of access created by the terrible, fee-laden process traditional mortgage banks put them through. I genuinely believe that the more we can make home buying affordable, easy to understand, and fair, the more we’ll see homeownership rates rise for this new generation of Americans. We’re challenging the status quo because we believe so strongly that people deserve better when it comes to making one of the biggest purchases of their lifetimes.”
Better found that many of its borrowers were unfamiliar with the homebuying and mortgage process, but were eager to learn. To address these needs, Better released “A Better Guide to Home Buying”, an informative guide to help educate first-time homebuyers about the basics of mortgages, as well as how to prepare in the months leading up to the purchase. Better’s non-commissioned Loan Consultants also provided personalized support to almost 2,000 customers.
Without even closing the books on the first month of 2018 Better is seeing 10x growth year over year. Looking ahead, Better plans to tackle even more headaches consumers face throughout the entirety of the home shopping process, from where to shop and how to win the bid to title insurance and homeowners insurance.
Here are what some of Better’s happy customers had to say:
“Had a great experience with Better Mortgage, website interface was very interactive and easy to follow. I already had all my documents in PDF form so uploading to the website was a breeze. Definitely did not feel like I was being sold a product and was provided with a great first-time buyer option. My real estate agent was a bit skeptical at first because she's always been a brick and mortar type, but like me, she was also pleasantly surprised. From the pre-approval letter to closing, nothing but positive things out of Better Mortgage, truly lived up to its name.”
“Closed in 16 Days! We were purchasing a home in a hot Seattle market so having the verified letter from Better was a big plus! In addition, we promised the developer/seller a fast close which was another reason our offer came out on top! Thank you Better Mortgage, I'm certain without these two factors we would not have been successful in securing this AWESOME home! Not only were your rates amazing but I was very impressed with your mantra and low closing costs! Thank you, thank you, we couldn't be happier with the whole experience!”
“This is what a mortgage should be. No pushy, aggressive salespeople. No outdated Word docs to fill out. Easy web site to collect all the documentation. Super responsive and transparent support team. We locked the (super low) rate on our purchase on 7/26 and closed on 8/25.”
About Better: Launched in 2016, Better is a full stack mortgage lender digitizing every step of the home financing process to make homeownership more affordable and accessible. Backed by Kleiner Perkins, Goldman Sachs, and Pinebrook, Better is focused on customer advocacy, putting consumers back in control of the most important financial decision of their lives. Recently named Best Mortgage Lender for Customer Service by Nerdwallet, Better has an intuitive online platform, complimented by non-commissioned staff that guides customers through the process starting with how much house they can afford or how much they can save through to close, completely jargon-free, with airtight certainty and the best rate possible.