Transforming the Mortgage Experience Through AI
The housing market may be cooling, but Better.com is betting big on technology to reimagine how Americans buy homes.
In a recent interview, CEO Vishal Garg said the company’s latest integration of artificial intelligence (AI) into mortgage origination and underwriting could dramatically speed up approvals, lower costs, and make homeownership more accessible.
“The mortgage process hasn’t evolved meaningfully in decades,” Garg said. “By applying AI to underwriting, pricing, and customer support, we’re cutting friction and helping more people qualify responsibly.”
Better.com – once known for pioneering digital mortgages, now wants to make the process as fast and seamless as online shopping. The company says early results show that AI-driven systems can reduce loan approval times by up to 80% and lower operational costs by 30%.
From Complex Paperwork to Intelligent Processing
For decades, applying for a mortgage meant endless forms, verification calls, and waiting weeks for a response. Better.com’s AI overhaul aims to eliminate much of that friction.
The company’s new AI model automates income verification, asset analysis, and document review, identifying errors or missing data in seconds, tasks that once took human underwriters hours or even days.
“AI doesn’t just make it faster; it makes it fairer,” Garg noted. “Algorithms can assess creditworthiness without the unconscious bias that sometimes creeps into manual review processes.”
The platform’s AI engine, trained on years of historical data and anonymized borrower profiles, also helps predict loan risk and optimize interest rates in real time.
How AI Could Reshape Homeownership
Beyond automation, Garg believes AI will help address a broader challenge: housing affordability.
Rising home prices and interest rates have squeezed many first-time buyers out of the market. Better.com’s AI models now use predictive analytics to forecast regional affordability trends, allowing the company to adjust offers and provide insights to both borrowers and investors.
“The data tells a story, where buyers can afford to live, how price dynamics are shifting, and what markets will recover fastest,” Garg explained. “Our job is to make that story transparent and actionable.”
By combining macroeconomic data with individual borrower profiles, Better.com hopes to give clients a personalized housing outlook, not just a loan quote.
AI Meets Compliance and Regulation
While AI holds promise, Garg acknowledges that the mortgage industry remains heavily regulated.
“Compliance is non-negotiable,” he said. “That’s why every AI recommendation goes through human oversight and auditing.”
Better.com has developed a “human-in-the-loop” system, ensuring that underwriters can review and override AI-generated decisions when necessary. The company is also collaborating with regulators to define ethical standards for algorithmic lending.
“Transparency builds trust,” Garg emphasized. “We want regulators and borrowers to see exactly how AI reaches its conclusions.”
Industry experts agree that this balance is essential. “AI can’t replace accountability,” said Sarah Wheeler, editor-in-chief of HousingWire. “But it can make the system more consistent and accessible if used responsibly.”
The Broader Housing Market Context
Better.com’s push into AI comes as the U.S. housing market faces a period of adjustment. Mortgage rates, while lower than last year’s peak, remain elevated around 6.5%, keeping affordability tight.
Still, the company sees opportunity in serving digitally native millennials and Gen Z buyers, who increasingly expect on-demand services and instant feedback.
According to internal data, over 60% of Better.com’s new customers interact primarily through AI chatbots and self-service portals, signaling a generational shift in how borrowers engage with financial products.
“This is a Netflix generation buying homes,” Garg said. “They want transparency, speed, and personalization, and AI helps us deliver all three.”
AI Beyond Mortgages
Better.com isn’t stopping at lending. Garg hinted at expanding AI integration into insurance, refinancing, and real estate services, potentially creating an end-to-end digital homeownership platform.
“Our long-term vision is to make every step, from searching for a home to closing the deal, guided by intelligent, personalized insights,” he said.
The company’s AI roadmap includes tools that could predict refinancing opportunities and automatically optimize mortgage terms when market conditions shift.
Analysts believe this approach could redefine how consumers interact with the housing ecosystem. “We’re entering an era where your mortgage could adapt to you, not the other way around,” said Wheeler.
The Bottom Line
Better.com’s embrace of AI marks a significant shift for both the company and the mortgage industry. By combining automation, transparency, and predictive analytics, it aims to make buying a home faster, fairer, and more data-driven.
“The homebuying journey has always been emotional and complicated,” Garg concluded. “If AI can take away the confusion and leave just the excitement, that’s a win for everyone.”
