Ally Bank vs Better.com
If you’re looking for an online mortgage application process, either Ally Bank or Better.com would be great choices. Both companies offer fast pre-approval, as well as fast turnaround times.
Both companies offer similar loan types, but neither company operates in all 50 states.
On BestCompany.com, Ally reviews are limited, making it difficult to provide an accurate comparison between the two companies based on customer sentiment. However, the majority of Better reviews are positive with 95 percent of customers giving the company 4 or 5 stars.
Jump down to read a company product and service comparison or helpful FAQs.
Overview
Ally Bank
N/A
N/A
Not Offered
N/A
15 Years
Better.com
5%
620
FHA
20–30 Days
8 Years
Ratings
Ally Bank
Better.com
Pros & Cons
Ally Bank
PROS
- Daily updated rates available on website
- No lending fees
- Closing cost discounts available for existing Ally Bank customers
CONS
- Limited loan types available
- Not available nationwide
Better.com
PROS
- Online application process
- No lender fees
- Highly-rated customer service
CONS
- No VA or USDA loans
- No home equity loan options
Reviews
Ally Bank
Reviews
Better.com
Reviews for Ally Bank
Helpful Favorable Review
Tara Gillispie
June 22nd, 2022
Huntington, WV
DETAILS
Review Source
I like Ally Bank for their very easy process of applying for credit with their bank. I had actually heard some not so great reviews about them from others but I didn’t let that stop me. So far, I’m very happy with their service. Every 30 days they have a different account representative contact me, which I feel is unnecessary, I would like to keep the same rep every month. Other than that they have been a great bank.
Helpful Critical Review
Reviews for Better.com
Helpful Favorable Review
Luke Swierczynski
November 10th, 2021
Troy, MI
Edited January 28th, 2022
Review Source
Was curious how the experience would be given all the advertisements they had. When purchasing our current home I did get a quote from Better.com but despite advertising zero commission or lender fees they still cost more than the company I ultimately used for my mortgage. I wouldn't recommend them purely based on the cost involved. I personally wouldn't use them but for a certain type of borrower it might make sense. It just didn't click for me.
Helpful Critical Review
Robert Kudler
November 9th, 2021
Merrick, NY
DETAILS
Verified Customer
Review Source
They have higher rates than competitors. Loan officers are often very young. I closed one loan with them but then they couldn't refi another house I own because they said they can't include the rental income from the property which makes no sense. This was weeks after I initially applied and I had a high interest loan so I wasted thousands waiting on them to eventually tell me they can't help me.
The Final Word
As online mortgage lenders, Ally Bank and Better.com offer similar products and services:
Competitive Mortgage Rates
Online Mortgage Process
Loan Types
No Fees
State Availability
Customer Reviews
Competitive Mortgage Rates
Both Ally and Better publish mortgage rates on their website.
Ally provides daily update rates, as well as an option to customize rates to get a better idea of what you might qualify for based on your finances and the property you’d like to purchase. Ally’s advertised rates are comparable to those of Better.com.
On Better.com you can choose certain parameters, such as your credit score and home purchase price, to determine your estimated mortgage rate options. Compared to other large lenders, such as Quicken Loans, Better.com has lower rates.
The websites for both companies publish the lowest rates available, typically available only to borrowers with excellent credit and financial health. The rates you will qualify for will be based on a variety of factors, such as your credit score and debt-to-income (DTI) ratio, so the rates you see advertised can’t be guaranteed for your mortgage.
Online Mortgage Process
Both Ally and Better simplify the mortgage process by keeping it online. For many borrowers, this is ideal because you can easily upload documents, and manage and track your mortgage progress.
In Better.com reviews, customers frequently mention how fast and easy the mortgage process is, particularly because they can upload documents online. In addition, customers are quick to praise the company’s online customer portal, through which you can keep track of your loan progress, leave questions for company representatives, and view a checklist of tasks to ensure that you are on track with your mortgage application.
Similarly, Ally keeps its mortgage process almost entirely online. However, you are required to finalize everything at closing in person. An Ally representative will let you know where to go and what to bring, and after all paperwork is signed you’ll be given the keys to your new home.
Loan Types
Compared to other large mortgage companies, Ally and Better offer limited loan types.
| Ally Bank | Better.com | |
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If you are a first-time homebuyer, or you are looking for a loan option with more flexible down payment and credit score options, Better.com might be a good choice for you since it has an FHA loan option.
However, most homebuyers get a conventional fixed or adjustable-rate mortgage, and so either company could be a good option, depending on your needs.
No Fees
Both companies have zero lending fees — no application, origination, processing, or underwriting fees. In addition, Better has zero commissions.
State Availability
Neither Ally or Better have nationwide coverage.
If you live in Maryland, New York, or Wyoming, you won’t be able to finance your mortgage with Ally, but you can with Better.com.
Customer Reviews
Ally Bank mortgage reviews are currently limited on BestCompany.com.
Better.com, on the other hand, has more than 400 reviews, 95 percent of which are 4-star and 5-star reviews. Better customers frequently highlight the following from their experience with the mortgage company:
- Excellent customer service with knowledgeable company representatives who promptly answer questions
- Online convenience, particularly noting the company’s customer portal which makes it easy to upload documents and track mortgage progress.
- Faster and easier refinance process than other mortgage companies.
Although the majority of Better.com reviews are positive, some customers mention that they were asked to submit documents multiple times which was inconvenient.
Frequently Asked Questions
Is Better Mortgage part of Ally Bank?
Ally Bank and Better.com are not the same company. However, back in 2019, Better.com helped Ally Bank launch its digital mortgage service, and Ally Bank also became a Better.com investor.
Is Ally Bank a direct lender?
Ally Bank is a direct-to-consumer lender, although the company may sell your loan after closing.
Is Better.com a direct lender?
Better.com is a direct lender. But after closing, the company may sell your loan to another servicer.
Does Ally Bank offer FHA loans?
Ally Bank doesn't offer FHA loans. The company doesn't offer any government-back mortgage products (FHA, VA, or USDA loans), but it does offer conventional loan products which meet the needs of most homebuyers.
How long does it take Ally Bank to close on a home loan?
Ally Bank doesn't disclose an exact closing timeframe, but it is likely much faster than the indsutry average of 40 to 65 days.
How long does it take Better.com to close on a home loan?
Better.com doesn't disclose an exact closing timeframe, but many customer reviews highlight how fast the company was able to close on their home loan — typically much faster than the industry average of 40 to 65 days.
