First and foremost, I would like to get out of the way the LendingTree is not a direct lender, moreover, they work as a broker to provide your information to lenders who decide whether or not to offer you a loan. This means unsolicited phone calls from sales agents on a daily basis. Essentially, the idea behind LendingTree is to have lenders fend for your business instead of making you do all the work of researching for the best loan option for your situation.
LendingTree In-Depth Analysis:
Essentially, LendingTree is a matchmaker for borrowers to find lenders. Again, I reiterate that they are not a direct lender, merely a broker of your information to lenders, and that’s basically how they make their ‘cha-ching’. Supposedly, this is supposed to make it easier for borrowers to find the best deals on loans because of increased lender competition, but being quite realistic, you won’t always get competitive rates.
Which loan type depends on your credit and DTI ratio. You will likely be able to get up to a 30-year mortgage loan if you have excellent credit with options of either fixed or adjustable rates depending solely on your preference and market trend values. They also offer FHA loans for those with lower credit scores and low down-payment qualified. Interest rates shouldn’t be too unreasonable, keep in mind that you as the borrower, must pay extra for insurance.
As for refinancing options, you will be allowed to convert your current loan to lower the interest rate with a Basic refinancing loan. With a cash-out refinancing loan, you are allowed to borrow more than what you owe on your home and keep the difference. Traditional home equity loans are also available for those of you that want to borrow with your home as collateral.
Editor’s Note: Not all of LendingTree’s lenders offer all loan types.
LendingTree Mortgage Summary:
- Apply Now
- Maximum Loan: Varies by lender.
- Account Type: Mortgage Loans: Fixed, ARMs, FHA
- Availability: Nationwide
- Expiration Date: None
- Additional Advise: Have the necessary documents and validation information ready to make your process as smooth as possible.
- Monthly Fee: No maintenance fees
- Closing Loan: Varies
LendingTree Mortgage Basic Requirements:
You’ll have a better chance of qualifying with a wider range of lenders if you have a credit score ranging from 660 to over 700. LendingTree does have lenders who accepts credit scores that are lower than that (with a higher interest attached, most likely). The preferred down-payment is around 20 percent, if you do not have 20 percent saved, you may be able to apply for an FHA loan where the down-payment requirement is low at a 3.5 percent. What do lenders look at:
- Credit Score
- Household income
- Job History
- Cash Reserve
- Down Payment amount
- Pay Stubs covering the customer’s most recent two pay periods for each applicant.
- W-2 Forms for the previous two years.
- Two most recent years’ federal tax returns (e.g. for a loan in 2015, the customer need to submit the customer’s 2014 and 2013 federal tax returns). All the pages and all schedules.
- If the customer is self-employed, the two most recent years’ business tax returns are also needed.
- For self–employed or investment income, the two most recent years’ 1099’s and K-1 forms are also needed
- For self–employed business income,year-to-date profit and loss statement and balance sheet.
- For retired customers, copy of Social Security and/or Pension “award letters” detailing the amount of retirement income.
- Two most recent months’ bank statements. All of the pages.
- Homeowner’s Insurance statement(s) for all properties owned showing the customer’s coverage and the annual premium.
- Mortgage statements for all properties owned that have liens.
- Copy of driver’s license or State I.D.card for all customers.
- If divorced, the customer’s fully executed divorce decree.
LendingTree Mortgage Features:
- Wide choice of lenders to pick from
- Fixed, ARMs, FHA. Conventional, and VA loans available.
- There are no upfront fees
How to Get Loan:
- Make your loan request. You would need to select the type of loan and complete the online request form. Be sure to also use the mortgage calculator if you need any help determining realistic figures.
- Wait for lenders to get in touch with you. Once you have submitted the loan request, your information will be sold to direct lenders. They usually flood in 5 minutes after LendingTree sends them your information (exaggeration). They’d contact you via email and phone calls prompting their loan offer.
- Take your pick from the loans offered. Like I said, this is supposed to offer you more competitive loans since banks are practically fighting for your business.
I understand what LendingTree’s services provide. With terms of privacy, I would never give into anything that sells my information, especially to banks/creditors/lenders. However, they do stress that the functionality of such is to give you lower rates on your loans with stimulated bank competition. It’s not necessarily true because there’s tons of instances of people getting rates that are below competitive in anyone’s book. Now, some pros: Wide choice of lenders to pick from + no upfront fees for their services. Also, be sure to check out our Best Mortgage Rates!
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