LendingTree Mortgage Review
How Does LendingTree Works?
LendingTree’s concept is unique but should be understood for what it is – a referral source for lenders. The consumer will not get their loan directly from LendingTree.
Due to the variety and depth of its financing and related options, one can find virtually every type of loan, as well as the lenders which fund those loans, without having to sort through hundreds of lenders.
Their proprietary Mortgage Rate Competition Index makes it easy to see which lender offers the lowest cost financing. This can save tens of thousands of dollars over the lifetime of the loan and may be worth extra credit pulls and incessant calls and texts.
LendingTree bills itself as an online exchange or marketplace for financing and it is, in that it makes the process of finding a lender simpler for the consumer, by aggregating the lenders suited for their request and their profile in one place.
Consumers would be advised to read all the fine print and ask about everything before providing their information. This is easily done by calling them at 1-800-813-4620.
What Makes LendingTree Unique?
LendingTree is a multi-line loan marketplace, or exchange, where consumers can go online, complete an application and receive quotes from multiple lenders. They have a comparison shop and obtain the lowest rate available among LendingTree’s stable of lenders.
Since their inception in 1996, they have expanded their product line, which was originally mortgages, to include personal loans, auto loans, business loans, student loans, reverse mortgages and more.
What makes LendingTree unique is that it is not a direct lender – it is a lead generation company. Through its advertising and marketing, it generates leads for its 400+ lenders, who pay Lending Tree to be connected to prospective borrowers.
On LendingTree Secure Website
Minimum Credit Score
Reputation - Customer Ratings & Complaints
- A+ on BBB: BBB assigns ratings from A+ (highest) to F (lowest). BB ratings are based on information in BBB files with respect to factors such as business's complaint history with BBB, type of business, time in business, transparent business practices, and more.
- 4.5/5 on Trustpilot (8811 reviews) TrustScore is also an overall measurement of reviewer satisfaction, represented numerically from 1 to 5.
- J.D Power: LendingTree wasn't rated in the 2020 research, but you can get an overall view of top lenders in the mortgage market. We considered 2020 J.D. Power’s primary mortgage as well as J.D. Power’s claim satisfaction survey.
- J.D Power offers the most comprehensive and independent study of customer satisfaction. The study aims to help consumers and issuers to understand user opinions and ratings of the largest mortgage origination companies. It covers customer satisfaction, terms, communication, transparency and more.
Products and Fees
As mentioned previously, through LendingTree’s network of over 400 lenders, every type of mortgage, auto, personal, student loan, reverse mortgage and others may be found in one easy session.
LendingTree does not charge the consumer for its matching services. Those fees are paid by the direct lenders, in exchange for LendingTree providing leads resulting from the consumer’s visit to their site and completing the online form.
LendingTree’s web site is comprehensive and includes descriptions and information about each of the loan types that a consumer can apply for while there. It also includes multiple loan calculators and articles regarding personal finance, such as whether to lease vs purchase an auto and how to repair credit.
Pros & Cons
Here are the main steps you should be aware of, including the relevant forms you should fill on the website:
1. Submit Your Application
– Complete a simple short or long online form and submit.
The process is simple and intuitive.
This can be done from any device.
Telephone assistance is available at 1-800-813-4620.
2. Evaluate Your Options – Receive multiple offers from lenders who provide customized offers based on the information you provided and a “soft pull” of your credit scores, if you authorized it. A soft pull is a way of obtaining credit scores without impacting someone’s credit score. A “hard pull” results in a deduction from each score of 5 – 15 points for each credit pull. If they choose the “short” application, borrowers can review the offers without having their credit pulled multiple times and with no impact to their credit score provided each of those “pulls” is done by LendingTree.
LendingTree makes it easy to evaluate the best deal by providing a Mortgage Rate Competition Index, which calculates the Annual Percentage Rate of each offer and showing the spread between each offer. This makes it easy for the consumer to see which lender is offering the best rate and the lowest cost loan over its expected life.
You can use our extensive set of calculators determine which of the loans are better for you, whether to get a 15 or 30-year loan, whether to refinance, how much home you can afford, whether to make extra payments and more.
3. Choose your lender – the consumer picks the best deal for him or her and then works directly with the lender’s loan officer to complete their loan application. There is live interface with the loan officer at the lender of their choice, throughout the process.
How Can I Get the Best Mortgage Rate?
A credit score of 700 or better will almost certainly result in a cheaper interest rate. With a lesser score, you may still qualify, but you may pay more in the long run.
A credit score of 740 or more is generally regarded excellent. You may get the most out of your mortgage if you stay within this range. However, you should still look into all of the prices that are offered to you.
It's important to remember that getting a mortgage with bad credit is still doable; it's just more difficult to obtain reasonable rates. It's possible that you'll have to pay more in the long run.
How to Improve Your Chance of Getting a Mortgage
There are a few things you can do to improve your chances of receiving an offer from your lender. To have an influence on your money, you'll need to start making changes ahead of time. Here are some suggestions for you:
- Get rid of your debts – Lenders will assume you won't be able to repay them if you have too many other debts. Make sure you pay off all of your other debts first. This will considerably boost your chances of receiving a mortgage offer.
- Boost Your Credit Score – As previously said, credit ratings inform lenders of your likelihood of repaying them. If you can raise it, you should do so before you start looking for a mortgage.
- Consider your Debt-to-Income Ratio – The debt-to-income ratio compares your overall loans to your earnings. If your debts are substantially greater, the lender will assume you don't have room for any more loans and will refuse to make you an offer. The ratio is calculated by dividing your monthly gross income by your monthly debts. Paying off debts and increasing your income can help you improve your debt-to-income ratio.
- Make a Significant Down Payment – Finally, having a substantial down payment is extremely beneficial. This will demonstrate to the lender that you have the ability to save a significant amount of money. Furthermore, the amount of money you'll need to borrow is significantly less.
Mortgage Shopping Worksheet – How Does It Works?
You may use a mortgage shopping worksheet to figure out which mortgages are best for you. Filling it out while you investigate lenders and shop around will make it much easier to choose a high-quality loan that best meets your needs.
The FTC even provides a free mortgage shopping worksheet that allows you to assess your lenders and the overall mortgage scenario.
To thoroughly fill out the loan application, you will need to learn all of the necessary information. As long as you don't leave any portions of the page blank, they'll be quite useful in establishing which mortgages will benefit you the most.
You can use the worksheet to compare multiple mortgages that are available. It also necessitates locating loan conditions, APR, prepayment penalties, and other relevant data. You'll be able to see what you're working with once you've entered everything into the worksheet.
You should, in general, fill it out. The FTC created the spreadsheet to assist you in determining what types of mortgages you can and cannot afford. If you don't fill it out, you might not be able to tell which selections are the best, which means you might end up choosing a more expensive one that hurts your finances.
Alternatives Lenders For Consideration
We’ve summarized some of the most popular mortgage lenders which can use as an alternative to the LendingTree mortgage:
When looking over this bank and all of their products, services, customer awareness, reviews, and above all, their fantastic work ethic, even though this company has not been open for as long as some major big named companies have been, this bank has been open long enough with nothing but great reviews, wonderful products, and even better service.
For a bank to not have any complaints to the big consumer companies after 22 years is and should be a phenomenal accomplishment.
Sofi Mortgage is a solid loan partner for the best loans in the market. The name Sofi is an abbreviation of two words, “Social” and “Finance.” The Company specializes in personal finance, and their products are geared towards providing financial empowerment for individuals seeking loans. They require a minimum credit score of 660 and a minimum down payment of 10% for customers seeking to collect a loan. They provide full digital support for clients and do not require private mortgage insurance for jumbo loans.
Some of the loan plans offered by the provider include Jumbo loans, adjustable-rate mortgage, FHA loans, VA loans, cash-out refinance, and fixed mortgages. The initial process to get a loan can be started online, and once the preapproval has been passed, you will be assigned a loan officer who will work you through the loan process.
If you would like a quote for rated and fees, you will need to fill out a form online because Sofi mortgages do not have any available quotes on their website. It has an A rating from the Better Business Bureau, which is a testament to the company's efficiency in delivering on its promise. Sofi Mortgage is a trusted market leader in the lending space.
Guaranteed Mortgage is one of the top-rated lenders in the industry. With the headquarter located in Chicago and licensed to lend in all the 50 states, this Bank provides a superb online mortgage experience with a unique digital application process. The Bank has an excellent reputation for an outstanding competitive rate and good customer service.
Guaranteed Mortgage offers both governments backed-up loans and conventional loans for purchase and refinance. Some of the loan products this bank offer include; Federal Housing Administration Loan, Jumbo Loan, Fixed-rate mortgage, Adjustable-rate mortgage, USDA mortgage, VA loans, and interest-only Mortgage.
To obtain a loan at Guaranteed Mortgage, you need to have a good credit score. However, Guaranteed Mortgage has a very flexible credit score requirement. For Federal Housing Administration and Veteran Affairs Loan, a minimum credit score of 580 is sufficient. Borrowers who want to obtain a Conventional Loan will need at least a credit score of 620 or higher, while for a USDA loan, the borrower must have at least a credit score of 640.
In 2018, Guaranteed Mortgage had a rating of 2 out of 5 stars in the U.S. Primary Mortgage Origination Satisfaction Study by J.D. Power and an A+ rating by the Better Business Bureau.
LendingTree – About The Lender
The founder of LendingTree, Doug Lebda, took note of the challenges he faced in obtaining a mortgage to purchase his first home and designed a business to put the consumer in control of their choice of mortgage lenders. Instead of calling lender after lender, getting rate quotes and learning each lender’s different documentation requirements, all of which is time-consuming, he organized Lending Tree so that the consumer completes an application online, the information is analyzed, using LendingTree’s proprietary technology and the consumer then receives quotes from five lenders, based on his or her profile. In theory, the lenders compete for the business.
He started the business in 1996 and took it nationwide in 1998. It was acquired by IAC/Interactive in 2003 and was spun off in 2007, joining Tree.com, a consortium of financial matchmaking services. In 2013, the company was re-branded as LendingTree.com, with its multi-product loan matching services under the LendingTree brand. LendingTree is a publicly traded company, trading under the symbol TREE.
Through the years, LendingTree has added hundreds of lending institutions to its fold – major nationwide lenders, smaller regional lenders and alternative lenders, which fill the gaps for borrowers whose credit profile does not conform to the conventional norms.
LendingTree also added auto loan lenders, student loan lenders, personal loan lenders, commercial/income property lenders and business lenders, credit cards, reverse mortgages and banking products, among others. They have also partnered with or acquired credit repair services and insurance services, allowing them to be a one-stop shop for all types of credit.
LendingTree’s site has a number of resources and tools for prospective borrowers to read and use, including calculators, newsletters, and lender ratings and reviews. Nearly every borrowing need a consumer would have is offered by LendingTree, through its lender network.